Japanese firms keen on support industry
Many Japanese investors have focused on industrial assembly projects in Hanoi, according to the municipal Department for Industry and Trade.
Currently, Hanoi has more than one quarter of its businesses in the support industry.
However, businesses from both countries are facing same snags in their joint ventures due to different levels of technical knowledge, management skill, and workmanship.
The Department will send a business delegation to Tokyo to seek assistance and cooperation from the Japan External Trade Organisation (JETRO) in holding annual trade fairs on support industry in Hanoi.
It is working closely with the Vietnam-Japan Human Resources Cooperation Centre (VJCC) to organise training courses and seminars for managers from both countries in the hope that they will help local businesses grow and flourish in the support industry.
Doosan Vina produces US$50 million boiler for India
The RoK-invested Doosan Heavy Industries Vietnam Co. Ltd. (Doosan Vina) won a US$50 million contract on March 20 to provide a super-critical coal-fired boiler for India.
The boiler with a capacity of 800MW each will be installed at the Lara thermal Power Plant in the state of Chhattisgarh to deliver 2,550 tons of high pressure steam per hour under extreme temperatures and pressures of 569 degrees Celsius and 271 kilograms per square centimeter.
Doosan Visa General Director Ryu Hang-ha said the contract confirms Doosan Vina as a global leader in the highly technical world of power plant boiler design, engineering and manufacture, that is creating favorable conditions for the development of heavy industries in Vietnam.
Vietnamese engineers and technicians will soon be recognized worldwide for their high skill and ability, he added.
Doosan Vina has already provided two 600MW boilers for the Raipur thermal power plant in India and exported to several other countries, including Brazil, Saudi Arabia, and Egypt.
Vietnamese giants eye Myanmar market
Many Vietnamese businesses, including large conglomerates, are seeking investment opportunities in Myanmar.
Taking the lead in penetrating the Myanmar market, Vietnam’s CT Group has set up a representative office in Yangon city in preparation for the implementation of projects worth over US$150 million.
The firm is settling some legal matters concerning two large projects, which were approved by President Thein Sein at the end of last year.
The first project is to build the 30-storey CT Damasayti Landmark on 6,000 square metres which will provide a trade centre, offices, hotels and luxury apartments for lease. The second one will be a high-rise building complex named CT Yankin Plaza, covering 8,000 square metres.
Both projects are expected to break ground in the third quarter of 2013 and construction work will be completed within two years.
Representing more than 50 Vietnamese associations and businesses, CT Group plans to build an integrated distribution network of traditional and modern channels such as shops, supermarkets, wholesale markets, TV shopping and online shopping services, and a 3-ha plant in Yangon’s Shwe Lin Pan II industrial park to produce wheat flour and instant noodles. These projects are scheduled for completion by the first quarter of 2014.
Another conglomerate, Hoang Anh Gia Lai, is pouring investment capital into real estate projects. The group is currently Myanmar’s largest foreign investor in tourism and hotel services, accounting for 25 percent of the country’s total foreign direct investment (FDI) in the industry.
Hoang Anh Gia Lai is building a five-star international hotel with more than 400 rooms in Yangon. The group’s Chairman Doan Nguyen Duc said that operational projects in Myanmar are paying off well and there is high hope to earn millions of dollars from the country’s real estate market boom in the next five years.
Other groups, such as military-run telecom firm Viettel, Hoa Sen, and FPT are also investing in Myanmar.
Tran Kim Chung, Chairman of CT Group, suggested Vietnamese giants should make the best of their investments in Myanmar’s much-needed areas, such as consumer goods, machinery, construction materials, agricultural products, and infrastructure construction.
In addition, he said, they should also find appropriate solutions to overcome the existing challenges, such as poor infrastructure and tight investment regulations, and gain the upper hand over foreign rivals, including those from China and Thailand.
Banks see increase in outstanding loans
After a decline in the first month of the year, the total outstanding loans of commercial banks in February surged 0.71 percent against December last year, according to the State Bank of Vietnam.
However, the bank reported that loans slid 0.28 percent from late 2012, attributing the decrease to a decline in foreign currency-denominated loans as targeted by the central bank.
The Government’s measures to resolve difficulties for business and production through reaming out the credit flow took effect in February, causing the surge, according to the SBV.
Liquidity of credit institutions was good, helping lending interest rates in the inter-bank market inch down against the beginning of the year. They stayed at 2.7-3 percent for overnight loans, 3-3.5 percent for one-week loans and 4.5-5 percent for one-year loans.
Lending interest rates for production and business were also more stable than at the end of 2012. The rate for agricultural and rural areas, exports, small-and-medium-sized firms, supporting industry and high-tech application firms stood at 9-12 percent yearly. The rates for short-term loans given to other industries averaged 11-15 percent yearly.
SBV said that it would impose credit growth limits on credit institutions so that the entire banking system could meet the credit growth target of 12 percent this year.
By the end of February, deposits also surged two percent against the end of 2012.
Deposit interest rates also remained stable at one to two percent for non-term deposits, 7.8-8 percent for deposits of less than one year and 10-11 percent for deposits of more than one year.
Thanks to the improved liquidity, many banks cut deposit interest rates and kept the rate lower than the 8 percent cap regulated by the central bank. The central bank places an 8 percent interest rate cap on under 12-month deposits; bank previously would offer the cap to attract depositors.
The Joint Stock Commercial Bank for Foreign Trade of Vietnam (VCB) was the latest bank to unexpectedly announce it would cut interest rates for some deposits. VCB decided to trim interest rates for one-to-three-month-deposits to 7.5 percent per annum from the earlier cap at 8 percent. The lender also paid 9.5 percent to depositors of over 12-month terms, down one percent from earlier.
The Asia Commercial Bank (ACB) announced earlier that it would offer only 7.7-7.8 percent per year for deposits of less than 12 months while Saigon Commercial Bank (SCB) offered a similar rate of 7.92 percent for deposits of less than 11 months.
Japanese firms seeks opportunities in HCM City
A business delegation from Japan’s Osaka city had a meeting with Ho Chi Minh City Vice Mayor Le Manh Ha on March 20.
The delegation is on a working visit to seek business opportunities in the city and southern provinces.
Ha briefed the delegation on the city’s socio-economic development, and its policies to attract foreign investment, adding that the city will create favourable conditions for investors from Japan and Osaka in particular to run business in the city.
In recent years, HCM City has focused on completing transport infrastructure, and planning industry zones and the electricity grid. It hopes to attract investment in the areas of Japanese strength such as high technology and precision engineering.
The President of Yoshiizumi Company and head of the delegation, Sasaki Keieki, said they will tour several Japanese firms investing in Ho Chi Minh City and some industrial zones to learn about the city’s infrastructure.
Osaka’s firms excel in high technology and precision engineering, he added.
At the meeting, the city leader answered questions and concerns about infrastructure, transportation, material sources and market demands.
HCM City boosts cooperation with Guam
Ho Chi Minh City Mayor Le Hoang Quan on March 20 received a business delegation from Guam, the US, led by Guam Governor Eddie Baza Calvo.
Quan spoke highly of the US business delegation’s visit, saying that it would open up new cooperation opportunities between Vietnamese localities and Guam.
He encouraged Guam businesses to invest in HCM City, especially in the fields of tourism and education.
Guam Governor Calvo highlighted common features between Guam and Vietnam, affirming their shared interests will help facilitate bilateral cooperation.
He noted that his Vietnam visit aims to foster cooperation between Guam and Vietnam, particularly in economics and culture. His delegation includes many businesses operating in this area, he added.
Panasonic washing machine factory operational in Vietnam
Panasonic Appliances (PAPVN) has officially inaugurated its washing machine factory in Thang Long II Industrial Park in the northern province of Hung Yen.
This is PAPVN’s second factory in Vietnam after they established a fridge factory in Hanoi’s Thang Long Industrial Park in 2003, with a capacity of producing 800,000 units per year.
With an estimated investment of US$32 million wholly funded by the Japanese corporation, the latest factory was built on an area of 52,000 square metres, with a total capacity of producing 600,000 washing machines per year.
Addressing the March 20 inauguration ceremony, PAPVN Director General Mitsuhiko Nakamura said that the factory is expected to supply 50 percent of its product to the domestic market, with the remainder to be exported to other Southeast Asian markets. The first batch of PAPVN washing machines will be shipped abroad next month, he added.
The factory is generating 300 jobs for local workers from now until 2014.
A Panasonic representative said that its Vietnamese factories have a localisation ratio of 30 percent in terms of product value. The figure will increase to 50 percent in the near future.
Vietnam, Myanmar boost trade ties
Myanmar Vice President U Nyan Tun held a working session with the Association of Vietnamese Business Investors in Myanmar (AVIM) in Hanoi on March 20, with the aim of boosting trade between the two countries.
Addressing the event, U Nyan Tun said that as of February 2013, Vietnam ranked 9th among world investors in Myanmar, with a total investment of US$370 million, accounting for just 1 percent of the country’s total FDI.
He also affirmed that the Myanmar Government will continue to create favorable conditions for foreign businesses including those from Vietnam to operate in the country by improving the business environment as well as regulations.
According to AVIM Chairman Tran Bac Ha, Myanmar is an emerging market for processing technologies, consumer goods and agricultural products.
Some of Vietnam’s largest conglomerates, including Hoang Anh Gia Lai, Simco Song Da and Bank for Investment and Development of Vietnam (BIDV), have all launched operations in Myanmar.
The two countries aim to raise two-way trade turnover to US$500 million by 2015.
Packaging expo attracted foreign businesses
The 8th International Processing, Filling and Packaging Exhibition and Conference (Propak Vietnam 2013) opened at Saigon Exhibition and Convention Centre (SECC) on March 20.
It was organised by VCCI Exhibition Service Co., Ltd, Bangkok Exhibition Services Ltd (BES), and Allworld Vietnam Representative Office.
The three-day exhibition drew more than 250 leading companies from 29 countries and territories including Germany, Singapore , the Republic of Korea, Thailand and Taiwan.
On display were the latest products and services for the processing, filling and packaging of food, beverage and pharmaceuticals.
ProPak Vietnam 2013 features a series of seminars covering topics such as “Food security – emerging issues for food industry management” and “Safe food and clean drinking water: application of common food safety management systems”.
Addressing the ceremony, BES General Manager Justin Pau said that the exhibition will create opportunities for foreign and domestic enterprises to expand their markets and support the development of new industries in Vietnam.
First FDI highway project in Vietnam
The Prime Minister has approved the selection of Japan’s Nexco Central Company as the main investor in a project to upgrade the Phap Van-Cau Gie highway project under a build-operate-transfer (BOT) contract.
The Ministry of Transport (MoT) described it as the highly feasible project undertaken by the Japan International Cooperation Agency (JICA).
It said Nexco is much more experienced than local companies in terms of financing, management experience and maintenance of infrastructure facilities.
The only snag in the negotiation process is that Nexco aims for a profit of 23 per cent higher than from other highway projects in Vietnam.
WB supports Vietnam’s reforms to gain economic competitiveness
The World Bank Board of Directors on March 19 approved the first Economic Management and Competitiveness Credit for Vietnam (EMCC 1) to help the country with economic management reforms for higher productivity and competitiveness.
The EMCC 1, the first of a series of three operations, provides US$250 million concessional financing to support reforms in seven policy areas: financial sector; fiscal policy; public administration and accountability; state enterprise management; public investment management; efficiency of the business environment; and equity and transparency of the business environment.
“Based on its successful Poverty Reduction Support Credit series, the EMCC aims to address new challenges that will raise the efficiency and competitiveness of the Vietnamese economy” said Victoria Kwakwa, the WB Country Director for Vietnam.
“I hope that the EMCC series will provide a platform for deepening and coordinating dialogue between development partners and the Government of Vietnam with a view to helping Vietnam transition to a new economic growth model, which targets competitiveness and the quality of growth.” she said.
Macroeconomic stability is a major priority for competitiveness in Vietnam, and a core objective of EMCC. The EMCC will help monitor macroeconomic policies and ensure that it supports the stabilization efforts of the government. Public Investment Management, SOE and banking sector reforms are prominent themes under the program, in line with the government’s priorities for structural reforms.
In addition, the EMCC prioritizes government efforts to streamline administrative procedures and strengthen fiscal disciplines because they are critical to productivity and competitiveness.
Vietnam implemented major reforms in the early nineties, which contributed to large gains in competitiveness that spurred rapid growth and poverty reduction. There is growing recognition, however, that the reform process has slowed down in recent years.
New reforms are needed to address major structural inefficiencies, promote more efficient use of labor and capital assets, and increase productivity across the economy. EMCC aims to support the implementation of this reform program over the next three years.
Southern provinces target bumper rice crop
The southern provinces target total output of nearly 10.1 million tonnes of rice in the 2013 summer-autumn crop, an increase of nearly 323 tonnes compared with the output of the same crop last year.
The total output includes over 9.35 million tonnes of rice harvested in the Mekong Delta, according to figures released at a meeting held by the Ministry of Agriculture and Rural Development in Can Tho City yesterday.
To reach these targets, the Mekong province will have nearly 1.7 million hectares and the southeast provinces nearly 148.100 ha under the ongoing summer-autumn rice crop.
The Mekong Delta targets average output of 5.54 tonnes per ha while the southeast provinces want 5.05 tonnes per ha.
Farmers from the Mekong Delta and the Southeast region have been advised not to use medium- and low-quality rice variety because low-quality rice does not sell well in the local and overseas markets.
They have been instructed to plant high-quality rice variety and fragrant rice which can be exported for high prices.
Farmers are also encouraged to apply new technologies to cut costs; to use machinery and equipment for harvesting; and to apply post-harvest drying techniques to reduce losses and to ensure high quality for their products.
Major rice varieties encouraged to be planted include OM 4218, OM 2517, Jasmine 85, OM 4900, OM 6976, OM 6162, ML 48 and others.
According to the Southern Hydro-Meteorology Bureau, farmers will face difficulties in the 2013 summer-autumn crop as the weather is not favourable.
In early March, thousands of hectares under the spring-summer crop (or the early summer-autumn rice crop) in the Mekong Delta have dried up or faced water shortages due to the intrusion of salt water in the region.
Insects also damaged dozens of thousands of hectares under the spring-summer rice crop. Forecasts say there will be five attacks of insects between March and July.
Authorities have been asked to supervise the sowing and planting schedules of farmers in the Mekong Delta and southeast regions to avoid insects and pests.
Provincial authorities have also been asked to manage and repair irrigation networks to ensure watering the summer-autumn rice crop.
Mystery clam deaths in Delta prove costly for local farmers
About 14,000 tonnes of clams from 1,200ha of farms have died from unidentified causes in the Cuu Long (Mekong) Delta province of Tien Giang’s Go Cong District within one month.
The loss is estimated to be about VND200 billion (US$9.5 million) for local farmers.
Dang Van Lan, 84, a clam breeder, told Nong thon ngay nay (Countryside Today) that he had never seen clams die en mass like that within 25 years. He lost 150 tonnes of clams, from 8.2ha of farm.
Le Hoang Viet, head of the district’s Agriculture and Rural Development Department, said the dead clams account for up to 70 per cent of total clams farmed in the region.
Salinity and temperature at the clam farms are believed to be meet standards following initial inspection by the provincial Fisheries Department.
Local farmers suspect environmental pollution may be the cause.
The provincial agriculture sector has taken samples of dead clams for tests to quickly discover the cause.
Meanwhile, local farmers who raise marble goby (Oxyeleotris marmorata) have suffered big losses due to a sudden fall in prices in southern Ca Mau Province.
Nguyen Van Quy, a local farmer, said last year a marble goby fetched VND405,000 ($19), but this year it was worth only VND200,000-220,000.
Ma Huy, deputy director of the provincial Agriculture and Fishery Extension Centre, said local farmers should not enlarge their goby farms.
“They have to invest a lot of money for the farms, so they take high risks when the output for the goby is unsustainable,” he said.
Thousands of farmers broadened their goby farms this year due to a bumper crop last year. Traders who bought the goby at lower prices are blamed for the present crisis.
Listed firms ready to report sustainability
Sustainability reporting, a mandatory requirement in foreign stock exchanges but yet to become so in Viet Nam, will be a highlight at this year’s annual report contest.
The contest will be organised by the HCM City Stock Exchange, Vietnam Investment Review and Dragon Capital in cooperation with the IFC (International Financial Corporation, a World Bank affiliate) and ACCA (Association of Chartered Certified Accountants).
They inked yesterday a five-year cooperation agreement under which the two international institutions will provide support to listed firms in preparing their financial reports.
“Deciding how and what to report helps focus a company’s efforts and resources on tackling the most important issues affecting its business,” said Simon Andrews, IFC director for Viet Nam, Cambodia, Laos, Myanmar and Thailand.
He said this would demonstrate the effectiveness of their business performances and their corporate governance, thus attracting investors.
Viet Nam-Ukraine trade up 4.5 per cent in 2012
The trade turnover between Viet Nam and Ukraine reached US$313 million in 2012, increasing by 4.5 per cent compared to 2011, according to the Viet Nam General Department of Customs.
Viet Nam’s export earnings from Ukraine hit $221 million, up 13.6 per cent. Thirty per cent of the figure was from seafood, garments, pepper, footwear, cashew nuts and rice.
However, its imports fell 12.2 per cent compared to the previous year to $92 million, with 70 per cent focusing on iron and steel, machinery, equipment and spare parts, means of transport, chemicals and fertiliser.
To raise exports, Vietnamese businesses need to boost trade promotion, expand markets, reduce exports of raw materials, and increase exports of processed products, experts say.-
Hospitality expo expects huge turnout
Food Hotel Viet Nam 2013, scheduled to be held on April 24-26, will provide local industry professionals with high-quality equipment, services and solutions available in the global marketplace.
With at least 70 per cent of the exhibitors from overseas, the sixth event is expected to become a premier platform for networking and building business partnerships.
More than 380 companies from 30 countries will attend the event which will have 18 international group pavilions, including Argentina, Australia, Korea, Belgium, France, Germany, Turkey, Japan, the US and Singapore.
The event will also host the Viet Nam Barista Competition and Viet Nam Culinary Challenge.
The Viet Nam Barista Competition will be judged by coffee experts, with the winner of the competition going on to compete in the FHA Barista Challenge 2014 to be held in Singapore.
The Viet Nam Culinary Challenge will be organised by the Sai Gon Professional Chefs Association and will feature the participation of several Vietnamese chefs from well-known hotels and restaurants.
To meet the burgeoning demand for specialty coffee in Viet Nam, there is an increasing need for professionally trained baristas.
At the event, the Specialty Coffee Association of Europe will offer a two-hour Basic Barista Course for the first time, taught by Danny Pang, a veteran coffee guru.
As the world’s second-largest producer of coffee beans, the coffee culture is deeply entrenched in the daily lives of Vietnamese.
Rising incomes and an emerging middle class have increased the demand for more sophisticated lifestyle-oriented coffee flavours and products.
This growing trend has prompted international coffee chains, including the US’s Coffee Bean and Tea Leaf, Australia’s Gloria Jean’s and American coffee giant Starbucks to establish presence in the market.
Participants of the basic barista course will be able to go on to the SCAE Level 1 Barista Certification examinations, and achieve the title of a SCAE-Certified Barista thereafter.
Viet Nam’s leading biennial FB trade event is co-organised at the Sai Gon Exhibition and Convention Centre by Singapore Exhibition Service Pte Ltd by VCCI Exhibition Service Ltd Co.
Trade with Brazil nears $2 billion
Trade between Viet Nam and Brazil could hit US$2 billion this year, the Viet Nam Trade Office in Sao Paulo has forecast.
The office said the bilateral trade has seen rapid growth in recent years despite the impact of the global economic recession.
During 2000-12, two-way trade saw a 65.2 fold rise from $26.2 million.
Last year, it reached $1.737 billion, an increase of 13.1 per cent over 2011. Export turnover was reported at $718.1 million, up 20.1 per cent, while import turnover was up 8.6 per cent.
Export turnover in the first two months of this year is estimated at $152 million, a rise of 68.8 per cent in comparison with the same period last year.
Imports from Brazil in the first two months this year decreased by 46.7 per cent to $92 million.
Viet Nam-Brazil trade is expected to reach $2.5 billion by 2015 and $5-6 billion by 2020.
Work commences on Ha Noi housing estate
The project to rebuild the Nguyen Cong Tru residential buildings in Hai Ba Trung district, Ha Noi was officially started yesterday morning.
This pilot project, which follows the city’s strategy to renovate and rebuild old buildings, aims to do away with low-quality housing and improve people’s living conditions and the municipal landscape.
The Ha Noi Housing Development and Investment Joint Stock Company No 7 under the Ha Noi Housing Development and Investment Corporation (HANDICO) is the project’s investor.
The housing estate, constructed in the 1960s, includes 14 downgrading four-storey buildings.
Chairman of the Ha Noi People’s Committee Nguyen The Thao stressed that the investor spent much time investigating, developing and issuing the project’s mechanisms.
He requested the investor and contractors to accelerate construction progress.
Thao also called for the project’s investor, the People’s Committee of Hai Ba Trung district, departments and agencies to continue researching and proposing appropriate mechanisms and policies to implement similar projects.
He expressed his hope that people will become aware of the State and city’s strategy, and support the State to finish the project successfully.
Nguyen Manh Dung, General Director of the Ha Noi Housing Development and Investment Joint Stock Company No 7, said that the project will see the construction of a complex that includes eight new 14-storey buildings on the 360,000-square – metre site. It will be connected by a network of roads and comprise supporting buildings, nursery schools and a sport complex.
The first phase of the project will see the construction of Building No 3 containing 300 flats for the resettlement of all families in the project area.
The project’s investor pledged to complete the building soon in order to help the residents of Buildings A1 and A2 resettle early.
PM launches airport expansion project
Approximately US$176 million will be poured into the expansion of Cat Bi Airport in Hai Phong City.
At a ceremony to mark the beginning of the construction process yesterday, Prime Minister Nguyen Tan Dung asked Hai Phong City and the stakeholders to ensure that the project would progress according to the original plan, both in terms of timing and quality.
He spoke highly of the city and relevant units’ efforts to overcome difficulties in land clearance to start the project as scheduled.
New landing routes are expected to launch in May 2015, by which time the airport will be handling 2 million passengers per year – equivalent to 800 passengers per hour at peak time –and 20,000 tonnes of goods.
After the expansion, Cat Bi will accommodate all types of aircraft, including B777s and A321s.
The airport saw average growth of over 38 per cent during the 2005-11 period – the most growth of any airport throughout the country. Soon it will reach the record of one million passengers per year.
Funding for the government-approved project will be drawn from auctions of land usage rights, the city budget and other sources. The Civil Aviation Authority of Viet Nam, the Ministry of Transport and ACC Airport Construction Company Ltd. will be partners in the construction process.
Credit growth bounces back in February
The State Bank of Viet Nam said February’s credit grew by 0.26% against January but in the first two months the growth rate fell by 0.28%.
The decrease was attributed to the shrinkage of foreign currency credit, which is in line with the Government’s effort to prevent dollarized economy.
In early February, liquidity of credit organizations fell sharply but it has improved quickly after the central bank used open market tool to support their seasonal capital demand to satisfy businesses’ capital need during the Lunar New Year holiday.
Thanks to high liquidity, inter-banking interest rates are slightly lower against the beginning of the year while deposits are bouncing back with a 2% increase in the first two months. This is sign of restored confidence in credit organizations.
The lending rates for agriculture, rural areas, exports, small and medium-sized enterprises are kept at 9-12%/year and for other fields at 11-15%.
The foreign currency market has also been stable, said the State Bank of Viet Nam.
The above signals shows that macro-economy and monetary market are on the right track, the bank noted.
This year, the Government targets a 12% credit growth and focuses on dealing with non-performing loans. Earlier this year, the Government issued Resolution 02 on solutions to remove difficulties against production and business, support the market and deal with non-performing loans.
Buyout delivers complete ownership to UPS in VN
UPS has become the first global express delivery company to be wholly-owned in Vietnam after it acquired its venture partner’s 49 percent stake, the company announced on March 19.
The partner was VN Post Express.
“With UPS now wholly-owned in Vietnam, our customers in this growing market are better connected to the world through the UPS global network,” said Brendan Canavan, who heads the company’s Asia Pacific operations.
As a part of its global growth strategy, UPS has invested in new facilities and technology in key commercial and industrial centres across Vietnam, including Ba Ria-Vung Tau, Binh Duong, Hai Duong and Bac Ninh provinces, the company said in a press release.
The company has enjoyed solid growth in Vietnam since it started its operations in 1994. UPS Vietnam’s export volume grew by more than 20 percent in 2012.
Japan explores investment in southern province
A business delegation from Japan’s Kobe city has explored investment opportunities in southern Ba Ria-Vung Tau province in seaport development, logistics and supporting industry.
During the delegation’s working session with the provincial authorities on March 18, Vice Chairman of the provincial People’s Committee Ho Van Nien informed the delegates of Ba Ria-Vung Tau’s potential and strengths in tourism, fishing, and the oil and gas industry.
The province is focusing on developing its port industry, logistics and supporting industry over the next 30-50 years, he said, adding that it is completing a one-door policy, teaching Japanese to workers and building infrastructure to meet Japanese investors’ requirements.
Ba Ria-Vung Tau has so far cooperated with Japan’s Kawasaki province in building the Kawasaki industrial zone, Nien noted.
The Japanese delegates showed their keen interest in infrastructure and human resources in Tan Thanh and Chau Duc districts that are calling for Japan ’s investment.
Following a fact-finding tour to Cai Mep-Thi Vai sea port on the same day, they said they hoped to have more specific information to facilitate their investment in the province.
Foreign firms to invest in Myanmar agriculture
Agriculture-related firms from Vietnam , Japan and the Republic of Korea are planning to pour investment in Myanmar , a rice exporter in Southeast Asia , according to new reports.
VinaCapital from Vietnam and Mitsui from Japan have respectively signed memorandums of understanding (MoU) with Myanmar Agribusiness Public Corporation (MAPC) on cooperation in agricultural development.
Under the MoU, combined factories for food processing and energy generation as well as rice grinding and purifying mills will be set up in Yangon, Ayeyawady, Bago regions and the capital city Nay Phi Taw.
Foreign investors have injected $182.75 million into nine agricultural projects in Myanmar since December, 2012.
Meanwhile, Myanmar has exceeded its 2012-2013 fiscal year target to export 1.5 million tonnes of rice by about 600,000 tonnes, the Myanmar Rice Industry Association was quoted as saying.
Chances await VN shoemakers in EU market
After years of being left out of the beneficiary list of the Generalized System of Preferences provided by the European Union, many Vietnamese footwear makers are now at ease as they will be eligible for new preferential treatment.
The Generalized System of Preferences, known as GSP for short, is a scheme that gives preferential access for a wide range of industrial and agricultural products originating from certain developing countries to the EU markets. The preferential treatment includes reduced or zero customs duties.
Under the newly-released GSP scheme, the average duty for Vietnamese-made footwear exports to the EU is lowered from 12.4 percent to between 3.5 and 4 percent, starting January 1, 2014.
“The door to the EU market is open wide for local footwear manufacturers if they can take advantage of this opportunity,” commented Nguyen Van Le, deputy CEO of Dong Hung shoemaker.
The EU is the Vietnam’s largest exporting market for footwear products, accounting for $3 billion, or 35 percent, of total export turnover last year.
However, the global economic slowdown has forced consumers in the market to cut spending. Many European importers have asked Vietnamese shoemakers to cut prices by 5 to 7 percent for new contracts in 2013 as more and more consumers are thinking twice about their shopping.
“The GSP will enable manufacturers to lower prices,” Le said.
Dong Co has made some 2.5 million pairs of shoes, worth a combined $15 million, so far this year, and some importers have also demanded that the company cut prices as “the import tax to the EU remains high,” he said.
“The EU consumers will benefit from the lowered import tax under the GSP, while local footwear makers can also grab this chance to increase export volumes,” he added.
Vietnam currently stands only behind China when it comes to footwear exports to the EU, according to Diep Thanh Kiet, deputy chairman of the Vietnam Leather and Footwear Association (Lefaso).
“This is because of our young workforce with good skills,” he explained, adding that the competitiveness can even be increased if Vietnam manages to reach a free trade agreement with the EU.
“Under the FTA, the tax rate for footwear will be reduced to zero, which will enable local shoemakers to expand markets,” he said.
Southern provinces target bumper rice crop
The southern provinces target a total output of nearly 10.1 million tonnes of rice in the 2013 summer-autumn crop, an increase of nearly 323,000 tonnes compared with the output of the same crop last year.
The total output includes over 9.35 million tonnes of rice harvested in the Mekong Delta, according to figures released at a meeting held by the Ministry of Agriculture and Rural Development in Can Tho City on March 19.
The Mekong Delta provinces have nearly 1.7 million hectares and the southeast provinces nearly 148,100 ha under the ongoing summer-autumn rice crop.
Mekong Delta farmers are looking to an average output of 5.54 tonnes per ha while those in southeast provinces hope to harvest 5.05 tonnes of rice per ha.
Farmers have been advised no to use medium- and low-quality rice variety because low-quality rice does not sell well in the local and overseas markets.
They have been instructed to plant high-quality rice variety and fragrant rice which can be exported for high prices.
Farmers are also encouraged to apply new technologies to cut costs; to use machinery and equipment for harvesting; and to apply post-harvest drying techniques to reduce losses and to ensure high quality for their products.
According to the Southern Hydro-Meteorology Bureau, farmers will face difficulties in the 2013 summer-autumn crop as the weather is not favourable.
In early March, thousands of hectares under the spring-summer crop (or the early summer-autumn rice crop) in the Mekong Delta faced water shortages due to the intrusion of salt water in the region.
Insects also damaged tens of thousands of hectares under the spring-summer rice crop.
Provincial authorities have been asked to repair irrigation networks to ensure water for the summer-autumn rice crop.
ADB: Vietnam’s bond market grows fastest in East Asia
Vietnam enjoyed the fastest growth in the local currency bond market in the emerging East Asian economies in 2012, said the Asian Development Bank’s (ADB) latest Asia Bond Monitor.
In the fourth quarter of 2012, Vietnam ’s local currency bond market rose 42.7 percent to 25 billion USD, an increase of 17.6 percent against the previous quarter, largely due to the rapid expansion in the government bond market.
The government bond market saw a year-on-year increase of 54.6 percent against the same period last year to 24 billion USD.
However, the business bond market shrank to only 47.6 percent of the same period last year, with 1 billion USD, representing a continuous decrease since March 2011.
AirAsia terminates flights to Da Nang
Malaysian AirAsia Bhd announced it will terminate its weekly flights to Vietnam’s central city of Da Nang from June 10, as part of its route network re-alignment.
The low-cost airline is currently operating four flights a week between the Malaysian capital city Kuala Lumpur and Da Nang city.
The carrier said it will notify affected passengers via emails and SMS messages.
Those who have already booked tickets during this period have three options: a refund, transfer to an earlier flight, or a credit shell for the value they had paid with a six-month validity, the carrier added.
For additional details, passengers can visit twitter.com/AskAirAsia.-
Vietnam welcomes Swiss insurer
Deputy Prime Minister Vu Van Ninh said Vietnam welcomed such a prestigious insurer as Swiss Re to the country, as he received Swiss Re Chairman Global Partnership Martyn Parker in Hanoi on March 19.
The Deputy PM said the local insurance market, which was opened to foreign investors in 1993, has registered an average growth of 23-25 percent over the past five years.
Currently 57 businesses are operating in the country, offering a diverse range of services, including life and non-life insurance, reinsurance and brokerage
He briefed Parker about Vietnam’s efforts to curb inflation, maintain macro-economic stability and achieve sustainable development.
Martyn Parker said his group, which is a strategic shareholder of Vietnam National Reinsurance Corporation (VINARE) with a 25 percent stake worth 70 million USD, will be the re-insurer for the pilot agricultural insurance programme conducted by Bao Viet, Bao Minh and VINARE under the direction of the Ministry of Finance.
Swiss Re will also work closely with the Ministry of Finance and Vietnamese insurance companies in designing risk responding plans, improving risk management capacity ties and providing natural disaster insurance solutions.
Hanoi, HCMC see fall in CPI in March
Consumer Price Index of Ho Chi Minh City in March dropped by 0.29 percent compared to the previous month but rose 1.15 percent compared to the beginning of the year, announced the City Statistics Office recently.
Among 11 commodity groups, six posted a decline, consisting of goods and other services with 0.62 percent; restaurants and catering services with 0.6 percent; beverages and cigarettes with 0.35 percent; transport with 0.34 percent; culture, entertainment, and tourism with 0.47 percent; and garments, hats, and footwear with 0.08 percent.
Meanwhile, housing, power, water, and construction materials ticked up 0.38 percent; and household appliances inched up 0.07 percent.
This month, gold price index fell 2.94 percent while the US dollar price index climbed 1.2 percent over the previous month.
Hanoi City’s Statistics Office also reported a drop of 0.21 percent in the Consumer Price Index in March, which surged 2.04 percent compared to December last year.
Of which, foods saw a fall of 1.36 percent compared to last month while eating-out stabilized. Other commodity groups also climbed but at an insignificant rate.
The gold price index sank 1.38 percent, and the US dollar price index soared 0.42 percent compared to the previous month.
Southern region faces power shortage
The already strained electricity supply might face a shortage of 9.18 billion kWh in the southern provinces during the dry season this year.
According to Vietnam Electricity (EVN), total power output consumed in March might reach 355 million kWh a day and will continue to rise in April, May and June, which is the peak dry season.
At present, the water level in most hydropower reservoirs is lower than normal, especially in the central and central highland regions.
In the southern region, water accumulation at the Dong Nai 2 Hydropower Plant in the first quarter will cause a drop of 200 million kWh at the Dong Nai 3 and 4 Plants.
The Cuu Long Basin offshore in southern Vietnam has operated unstably and can provide only 0.3-0.5 million cubic meters of gas a day, which will run short of demand for gas turbines at the Ba Ria Thermal Power Plant.
Besides, the 500-220kV transmission system is always overloaded, making electricity transmission from the northern to the southern region very difficult. There is no new power source in the southern region this year.
EVN plans to mobilize about 1.113 billion kWh from fuel and diesel oil during the dry season this year, which will come at a much higher cost and might result in power price increase.
Dang Hoan An, deputy director of Vietnam Electricity, said that southern provinces will lack supply by 9.18 billion kWh.
Besides domestic power sources, EVN plans to purchase 3.6 billion kWh of electricity from China.
At present the Southern Power Corporation and the HCMC Power Corporation have implemented measures to cope with power shortage possibility and balance power supply and demand in the southern region.
Earlier, the Ministry of Industry and Trade had instructed the Vietnam National Oil and Gas Group to increase gas output to thermal power plants, especially at Ba Ria Thermal Power Plant. The group should now give priority to provide gas for power generation.
Vietnam Airlines offers ‘buy-one get-one’ free package
Vietnam Airlines announced on March 20 that they are offering a promotional package, under which any economy class passenger above the age of 18 can avail of a free ticket for an accompanying child of less than 12 years of age on the same flight.
An adult economy class passenger can get a free ticket for an accompanying child of less than 12 years of age
This offer is open on 38 domestic flight routes of Vietnam Airlines and the Vietnam Air Services Company.
The promotional program will take effect date from now until January 31, 2014.
Exporters get top trade advice
One of the world’s leading law firms, Mayer Brown JSM (formerly known as Johnson Stokes Master) and Viet Nam Chamber of Commerce in HCM City today offered local companies advice on how to handle trade remedies.
More trade-barrier cases are being brought by Viet Nam’s trading partners, especially anti-dumping and countervailing cases.
Vietnamese manufacturers face increasing competition from the growing number of goods being unfairly imported into Viet Nam.
Since late last year, warnings have been arising concerning the initiation of trade remedy cases against several Vietnamese exports, including steel products exported to Thailand, cashews to India, and cement to South Africa.
More than 170 representatives from Vietnamese enterprises, business associations, media and related authorities attended the seminar.
The speakers at the seminar are leading trade experts and include Ambassador Susan C. Schwab, former US Trade Representative and current strategic advisor to Mayer Brown; Nguyen Duy Khien,director of America Market Department, Ministry of Industry and Trade; and Matthew McConkey, partner in charge of Mayer Brown’s Global Trade Group in Asia.
The seminar is expected to provide Vietnamese exporters with the opportunity to gain useful and practical knowledge of trade remedy matters that could have a direct effect on their production and export activities.
Mayer Brown JSM, the seminar’s sponsor, is one of the few global law firms to have a team that specialises specifically in government and global trade.
The team has participated in negotiations concerning most of the material agreements and trade incentives over the past 30 years, such as the agreements on establishment of the WTO, GATT, APEC, and NAFTA, and the negotiations for the accession of Viet Nam and other countries to the WTO.
In Viet Nam, Mayer Brown JSM has been acting on behalf of Vietnamese exporting enterprises since 2000 in the antidumping cases against catfish and warm-water shrimp.
Currently, Mayer Brown JSM is representing a large number of Vietnamese seafood enterprises in a frozen-fish fillet case.
Food, drinks and drugs fair opens
The eighth Propak Viet Nam, the country’s most important international food, drink, and pharmaceutical processing and packaging exhibition, opened yesterday in HCM City.
The International Processing, Filling and Packaging Exhibition, which is being held along with the International Pharmaceutical and Cosmetics Processing, Filling, Packaging and Ingredients Exhibition (Pharmatech Viet Nam), has brought together more than 250 exhibitors from 29 countries.
It showcases the latest products and technologies used in bar coding, printing and labelling, beverage brewing, process control, automation/drives and control/energy efficiency, plastics processing, and pollution control.
Justin Pau, general manager of Bangkok Exhibition Services Ltd, the organiser, said: “Propak Viet Nam’s objective is to present the leading and latest processing and packaging machinery and technology.
“About 80 per cent of them will be environmentally friendly ones.”
There is great opportunity for developing food and pharmaceutical processing and packaging in Viet Nam considering agricultural exports grew by 33 per cent in 2011 and the pharmaceutical market would grow by 19 per cent this year.
A World Bank business environment survey found Viet Nam’s food, drink, and drugs industries to be more competitive than those of Indonesia and the Philippines.
Today there will be a conference on “Food security – emerging issues for food industry management” organised by the Viet Nam Association of Food Science and Technology.
A seminar titled “Safe Food and Clean Drinking Water: Application of Common Food Safety Management Systems” is scheduled for tomorrow by the Viet Nam Association of Testing Laboratories.
The exhibition, held at the Sai Gon Exhibition and Convention Centre by Bangkok Exhibition Services Ltd in collaboration with the VCCI Exhibition Services Ltd, will go until tomorrow.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR