Agriculture sector aims to complete 1.2 percent growth target

The agricultural sector was urged to exert all-out efforts in the remaining months of the year to realise the sector’s growth target of at least 1.2 percent in 2016.

Speaking at a press conference hosted by the Ministry of Agricultural and Rural Development (MARD) in Hanoi on November 9, Deputy Minister Ha Cong Tuan said the sector will take measures to maintain growth of fruit, vegetable and aquaculture exports.

He asked for special attention to fostering exports, controlling quality of exports and ensuring food safety to ensure entry to demanding markets like Japan and Europe.

According to the deputy minister, Vietnam’s key aquatic exports like shrimp and Tra fish recorded stable growth in the first ten months of 2016.

Export turnover of fruit and vegetables is estimated to reach about 2.5 billion USD, whilst aquaculture growth is expected to increase 7-8 percent.

The breeding and forestry industries are set to reach growth of 5 percent and 7 percent, respectively.

Regarding the livestock industry, localities were requested to keep track of the epidemiological situation, especially in the rainy season.

The Department of Livestock Production is responsible for outlining vaccination plans and directing localities to implement them. 

The MARD also asked sectors and localities to devise measures to deal with the La Nina phenomenon, which causes rain and negative effects on agriculture production, especially this year’s winter-spring rice crop and the growing of industrial plants.

If these key fields can maintain their growth in 2016’s remaining months, they will help ensure the sector’s yearly growth target, compensating for the declining growth of food items, including rice, Tuan said.

Firms urged to learn about China

Vietnamese businesses need to better understand China’s trade procedures and market to achieve higher export turnover, heard a conference yesterday in Ha Noi.

“Not only did the conference bring information on the Chinese market and opportunities for major Vietnamese products to China such as rice or coffee, it also helped answer domestic businesses’ questions on export procedures into China,” said Do Kim Lang, Deputy Director General of the Viet Nam Trade Promotion Agency (Vietrade) at the conference.

Vietrade and the Ministry of Industry and Trade (MoIT) held the conference in collaboration with the Viet Nam’s trade promotion office in Chongqing, China, focusing on export opportunities into Chinese market.

The conference centred on China’s market information and export opportunities for Vietnamese firms, aiming to increase Viet Nam’s exports into China and attract investment from China to Viet Nam.

According to Dao Viet Anh, head of Vietrade office in China’s Chongqing city, China is one of Viet Nam’s major importers, with many favourable circumstances allowing for trade between the two countries as China has a large demand for Vietnamese products such as rice, tapioca, rubber, fruits, tea leaves and seafood.

However, Vietnamese goods have long encountered difficulties getting into China due to problems in customs procedures, quarantine, lack of information and connection.

Anh reminded Vietnamese businesses operating in China to go through proper channels such as trade representatives and trade promotion offices, validate Chinese partners’ actuality and credibility, and to use internationally recognised contracts and practices.

Businesses should also have a deeper understanding of the Chinese Government’s rules on imports and market regulations on products quality as well as customers’ demand. They should also participate in trade promotion activities.

In 2015, according to Viet Nam’s General Department of Customs, total export and import turnover between Viet Nam and China reached US$66.6 billion, having increased by 13.4 per cent compared to 2014. Of which, Viet Nam’s exports to China accounted for $17.1 billion with an increase of 14.8 per cent, while importing $49.5 billion with an increase of 13.3 per cent.

While China’s imports from other ASEAN nations have dropped, import turnover from Viet Nam continued to be strong. At the end of July 2016, Viet Nam became China’s largest trade partner in ASEAN with total bilateral trade volume at $52.26 billion, though down by 1.3 per cent compared to the same period in 2015. 

Getting credit still tough for SMEs     

Lack of capital and access to credit remain the most serious obstacles to the success of Viet Nam’s small and medium enterprises (SMEs), a report by the Central Institute for Economic Management (CIEM) said.

The report, released in Ha Noi on November 9, and which reviewed Viet Nam’s business environment in 2015, is the result of a survey conducted by CIEM. More than 2,600 SMEs from ten cities and provinces including Ha Noi, HCM City and Hai Phong participated in the survey.

The survey showed that 83 per cent of businesses said they were facing obstacles in business development, including lack of capital and land for business and production, fierce competition and limits on consumption of products.

This figure remains unchanged when compared with the survey in 2013.

But the rate of businesses facing difficulty accessing credit has reduced, said University of Copenhagen economist Dr John Rand, who is a member of the survey’s researchers.

It had decreased from 45 per cent in 2011 to 30 per cent in 2013, and to 24 per cent in 2015, John said.

The limit on consumption of products is the second most serious obstacle, but the survey had seen a reduction in the number of cases. It went down from 27 per cent in 2013 to 21 per cent in 2015.

Nearly 17 per cent of businesses said they were dealing with the pressure of competition. This figure is similar to that of surveys conducted in 2011 and 2013.

“The figures are good signals as the business conditions seem to have been improved a little bit, but the order of obstacles still remains unchanged,” said John.

At the seminar, participants agreed that the business environment has been better, meaning that the government’s policies to support SMEs have been on the right path. However, there are barriers existing that need to be wiped out.

Deputy Director of CIEM Phan Duc Hieu compared the business environment to a fish tank, in which each business was a fish. The fish was viable and could develop or not – it depended on the tank’s environment.

Sharing the opinion of Hieu, Dr. Finn Tarp from United Nations University said that building a tank was good but it was better to help the fish to be viable and grow. It was necessary to understand the business environment as well as obstacles facing them and their opportunities in order to offer advantageous policies for a sustainable growth.

The survey revealed that nearly 98 per cent of businesses still preferred to remain in the formal sector in 2015. There were a small number of businesses in the informal sector.

As many as 70 per cent of businesses said they had to pay informal charges for accessing public services when they wanted to obtain licences, solve problems related to taxes, taxman and customs, reach contracts or negotiation with customers and for other informal reasons.

The businesses said that they would continue informal payments in the future to deal with difficulties in complying with the State regulations and catching up with the competition in the market.

Finn said the informal payment was still a serious problem, which was damaging the competitiveness of businesses. The Government needed to play an important role in helping businesses get rid of informal payments.

“When everything is explicit, the informal payments will certainly reduce,” Finn said. 

EU beef imports to VN recover

The European Union’s beef imports to Việt Nam should recover as mad cow disease gets under control in Europe and the potential market in Việt Nam lures imports with high demand and zero import tariff.

The Ministry of Agriculture and Rural Development’s National Agro, Forestry, Fisheries Quality Assurance Department (Nafiqad) said Việt Nam has granted import licence for hundreds of factories in the EU to ship beef from the EU to Việt Nam.

From November 2-4, 42 enterprises from EU countries visited Việt Nam to study the domestic food market, the ministry said. Those enterprises came to supermarkets to contact directly with local customers for get information about demand and eating habit of the local people. They also had 500 meetings with domestic enterprises to find cooperation and investment opportunities.

The EU enterprises expect to promote their exports to Việt Nam in the future, especially after the Việt Nam – EU Free Trade Agreement comes into effect with zero tariff for many kinds of import and export goods.

This year, many cattle producing countries in the EU controlled completely mad cow disease--such as Belgium, France, the Netherlands, Germany and Italy--so the US and North American and Asian countries have opened their markets for beef imported from the EU. Việt Nam has also given import licences for French factories to ship beef to Việt Nam since May 2015.

So far, 158 French enterprises have received permission to sell their beef to Việt Nam, and one third of them having slaughter plants. Hundreds of factories from Spain, Belgium, Italy, Poland and Poturgal have had qualified beef products to import to Việt Nam.

Đoàn Ngọc Thơ, director of HCM City-based THO Trade and Service Co Ltd, said beef from the US, Australia and the EU has reached highest quality standard in the world.

Restaurants and hotels in Việt Nam have still had high demand on importing beef, he said.

Thơ was quoted by cand.com.vn online newspaper saying “I think control of mad cow disease in the EU and the effectiveness of the Việt Nam – EU FTA will make beef a much more popular import than pork and chicken.”

Currently, imported frozen beef from the EU and the US to Việt Nam has been taxed with a high tariff of 14-30 per cent. Beef is a hot product at supermarkets, restaurants and hotels with high retail price at between VNĐ300,000-600,000 per kilo.

Veviba - a food company with a national and international presence located in Bastogne in the province of Luxembourg, has not exported its beef to Việt Nam. Instead, it has shipped its beef to Greece and the Middle Eastern countries, said Sandrine Guillaume, a representive of Veviba, one of the 42 EU enterprises visiting Việt Nam between November 2-4.

After studying Việt Nam’s market, Guillaume said her group has planned to export beef to Việt Nam in the future because the Vietnamese people pay attention to clean food and Veviba has produced beef under quality management process.

The ministry said Việt Nam imported 1,720 tonnes of beef from the Europe in 2014, 70 times higher than the imports in 2012. The beef imports from Europe continued growing by 11,000 tonnes in 2015 against 2014 and by 15 per cent in the first nine months of this year.

So far, 200 exporters in the EU have been granted licences to export their beef to Việt Nam, it said.

Agri-forestry-fishery exports to hit US$31 billion

Agri-forestry-fishery exports are expected to grow by 1.2-1.4% to reach US$31 billion this year, said the Ministry of Agricultural and Rural Development (MARD) representative at a press conference in Hanoi on November 9.

Key industries such as livestock and fishery still develop well despite numerous difficulties including natural disasters confronting eight central provinces.

According to the report, total export value jumped by 63% to US$26.4 billion in 10 months leading up to November.

MARD Deputy Minister Ha Cong Tuan said the ministry will direct localities, businesses, and piglet and poultry breeding units to implement measures to accelerate production and ensure market stabilization to meet production and food consumption demands in the remaining months of the year, especially during the Solar and Lunar New Year festivals, and exports.

It will further coordinate with relevant ministries, departments and localities to carry out a master plan to restore production and stabilize lives of people in four central provinces which have been affected by maritime environmental incidents.

Coffee exports to South Africa surge high

Coffee exports to South Africa skyrocketed by 92.62% to US$15.1 million in the first nine months of this year, according to the General Department of Vietnam Customs.

However, total exports to the market dipped by 15.53% to US$678.3 million in the reviewed period.

Vietnam businesses exported 15 kinds of products to South Africa, of which telephone and components topped the list with US$370.9 million (down 13.03%), accounting for 57% of the total export value, trailed by footwear (US$94.2 million, up 10.25%) and computers, electronics and components (US$54.6 million, down 61.22%).

Wood exports to the market saw a sharp decrease of 42.33% while other products obtained a quite high export growth. They include machines, equipment and tools (up 60.65%) and pepper (up 26.35%).

China key buyer of Vietnam’s glutinous rice

China is the dominant buyer of Vietnam’s glutinous rice, making up over 92% of Vietnam’s total export of this type of the grain in January-September, an industry source said.

Vietnam’s glutinous rice export in January-September totaled more than 761,000 tons, 701,000 tons of it to China, or 92%, the source said. In September 2016 alone, China imported over 146,000 tons of sticky rice from Vietnam.

China is also the biggest buyer of other types of Vietnamese rice in the period. In the first nine months of the year, China imported nearly 1.4 million tons of rice from Vietnam, with glutinous and basmati rice accounting for 50% and 13% respectively.

The price of sticky rice in the Mekong Delta has remained high due to the strong consumption from China, prompting many farmers in Long An and Dong Thap provinces to shift to growing glutinous rice.

Speaking to the Daily, some farmers in Long An Province said although the 2016-2017 winter-spring rice crop only started for nearly one month, many traders have come to place a deposit of VND5-7 million per hectare to buy glutinous rice.

Nguyen Thanh Phong, director of Van Loi Corporation in Tien Giang Province, said glutinous rice consumption is heavily dependent on China’s market, which may put farmers at stake. “If China reduces or halts import of glutinous rice, the price would surely plummet,” he explained.

Enterprises advised to protect accounts and digital signatures

The General Department of Customs has advised enterprises to protect their accounts and digital signatures when participating in e-customs procedures to avoid fraud.

The department has requested enterprises not to reveal their accounts and digital signatures on the customs declaration forms to a third party.

If enterprises cannot implement customs procedures directly, but via customs agents, they should use services from authorized agents who meet the requirements for professional knowledge and facilities. It also needs to sign contracts with agents.

More importantly, goods owners should request customs agents to use their digital signatures and seals to carry out electronic declarations. They should not assign their signatures to agents.

Every enterprise needs to establish an appropriate mechanism to prevent unauthorized employees from using their digital signatures and stamps on transaction documents. If enterprises suspect their accounts and digital signatures have been stolen, they should immediately inform the customs in order to prevent fraud.

Customs authorities have repeatedly told enterprises to manage their accounts and digital signatures. The reason is that a number of perpetrators have made use of the digital signatures of their victims for smuggling and trade fraud.

Some enterprises have entrusted customs agents or individuals with their accounts and digital signatures for the implementation of customs declaration procedures. However, certain agents and individuals also made use of these digital signatures for other purposes without the knowledge of these companies.

For example, a smuggling case involving a Tay Ninh-based company was uncovered at Cat Lai port in early September. Through inspections, customs officers discovered that the shipment contained secondhand electronic equipment, electrical appliances and automobile parts that were banned for import.

Through the investigation, the authorities concluded that the head of the import and export division at the company took advantage of the management of digital signatures on an open customs declaration for smuggling under the name of the company while the company’s leaders went unnoticed.

Digital signatures are electronic signatures used to confirm information of electronic transactions on the Internet. With the implementation of electronic filing and customs declarations, all enterprises are required to have a digital signature.

Listing delays subject to heavy fines

Businesses, especially State-owned enterprises (SOEs), that have launched their initial public offerings (IPO) but have not registered transactions and listed their shares on the stock market will face an administrative fine of up to VND400 million from December 15.

Those registering transactions and putting their shares on the bourse one month later than required will be fined VND10-30 million. The penalty will be progressively increased depending on the length of delay, with VND400 million to be imposed on enterprises whose transaction registration and listing are done 12 months later than required.

These provisions are provided in Decree 145/2016/ND-CP which amends and supplements Decree 108/2013/ND-CP on sanctions against administrative violations in the securities market. Previously, under Decree 108, the aforesaid acts may not be sanctioned.

Recently, to accelerate share transactions of SOEs following their flotation on the UPCoM exchange, the Ministry of Finance has issued Circular 115/2016/TT-BTC modifying Circular 196/2011/TT-BTC. Thus, from this November, enterprises shall coordinate with the stock exchange and the Vietnam Securities Depository to register for depository and transactions within a definite time after they go public.

In particular, within seven working days upon receipt of the notification confirming the auction results from the State Securities Commission, the Hanoi Stock Exchange shall offer shares on the UPCoM trading system. The reference price for the first trading day on this trading system is determined on the basis of the average price paid.

In other words, as soon as their IPOs are conducted, SOEs must register share transactions on UPCoM. This is considered a technical change, but it may give a much-needed boost to the equitization of SOEs.

In September 2014, the Prime Minister released a decision asking equitized SOEs to undergo the procedures for listing.

Within 90 days after a business registration certificate is issued, equitized SOEs must complete their registration to become a public listed company, register their shares at Vietnam Securities Depository and sign up for transactions on the UPCoM trading system, says Decision 51/2014/QD-TTg, with effect from November 1, 2014.

In addition, if fully satisfying the conditions to get listed on bourse, post-equitization SOEs must follow procedures to trade their shares on the stock exchange, within one year from the date of receipt of business registration certificates.

If having successfully converted their shares before the effective date of Decision 51, prior to November 1, 2014, equitized SOEs must perform transaction registration and listing no later than one year from November 1, 2014.

Agriculture ministry agrees on loan package for cashew farmers

The Ministry of Agriculture and Rural Development has agreed with a proposal of Binh Phuoc Province to develop a loan program to support cashew farmers in the southern province.

The loan package will allow Binh Phuoc as the country’s biggest cashew growing area to carry out the cashew sustainable development plan until 2020, the ministry said in its Document 9316/TB-BNN-VP signed on November 3.

With the plan, farmers in the province with 200,000 hectares of cashew will be able to create a stable material supply source for cashew nut exports, according to the provincial authorities.

The Vietnam Cashew Association said cashew nut exports had posted higher growth than other agricultural products over the years.

However, domestic supply makes up only 30% of the crude cashew volume, and local firms have to import unprocessed cashews from Cambodia and Africa to process nuts for export.

The country exported around 291,000 tons of cashew nuts worth US$2.33 billion in January-October, up 5.8% in volume and 16.6% in value against the same period last year.

The U.S., the Netherlands and China are the three biggest cashew nut importers of Vietnam. The average export price of this product in the first nine months stayed at US$7,928 per ton, up 9% year-on-year.

During the ten-month period, Vietnam spent US$1.4 billion importing 913,000 tons of crude cashew, rising 17% in volume and 39% in value.

One of the reasons for the heavy dependence on crude cashew imports is unstable domestic supply.

Ninh Thuan wants to have part of North-South Expy

Ninh Thuan Province is seeking permission from the Government to allow it to develop a road section as part of the North-South Expressway, as the south-central province would benefit if the expressway passes through it.

In a proposal sent to the Ministry of Transport to be forwarded to the Government, the province wants to develop the 90-kilometer section under the public- private partnership (PPP) format, according to the transport ministry.

As the HCMC-Long Thanh-Dau Giay Expressway has been opened to traffic while the Dau Giay-Phan Thiet Expressway is expected for completion in 2019, it is necessary to start work on the Nha Trang-Phan Thiet Expressway section, which runs through Ninh Thuan, to shorten the traveling time to the south central region, Ninh Thuan explains.

At a meeting with the provincial authorities on Monday, Deputy Minister of Transport Le Dinh Tho said mobilizing capital to carry out the expressway section under the PPP format would be fine given the State’s budget constraints.

He requested localities benefiting from the North-South Expressway project to share responsibility with the transport ministry.

For build-operate-transfer (BOT) projects, local governments will have to build new roads to offer road users other choices instead of forcing them to use BOT roads only. In addition, they will have to ensure transparent information on toll collection and put toll stations at suitable locations.

The Eastern North-South Expressway project has been attracting public attention and investors since the transport ministry recently submitted a construction scheme to the Government, suggesting the road should stretch 1,372 kilometers and pass through 20 provinces and cities.

The ministry proposed three investment plans for this project.

Under the first plan, the expressway would have at least four lanes and all site clearance work would be done in the first phase so that the road could be widened later.

The second plan suggests just part of the site clearance work would be done while the third plan would develop the entire expressway at the same time rather in phases.

As calculated by the ministry, the first one could help save cost.

If it is implemented, the total investment is expected at VND229.83 trillion (US$10.28 billion), including VND136.28 trillion from investors and VND93.53 trillion from Government bond sales, the ministry estimated.

However, public concerns have surfaced after the ministry announced to carry out the Eastern North-South Expressway under the BOT format, since it will lead to overlapping fees as many traffic projects have been implemented under this form, giving people no other choice but to use BOT roads.

Car sales up in January-October period

Automobiles sales in the first ten months of 2016 increased 30 percent to 242,681 units compared to the same period last year, announced the Vietnam Automobile Manufacturers’ Association on November 9. 

In the period, sales of passenger cars soared 30 percent, while that of commercial vehicles went up 29 percent, and special purpose vehicles, 40 percent. 

Sales of domestically-built cars rose 34 percent and that of imported vehicles, 22 percent. 

Sales hit this year’s peak in October, with 28,283 units sold, up 26 percent year on year. 

Truong Hai Auto Corporation continued to take the lead in October with 9,895 units sold, accounting for 40.4 percent of the market share, followed by Toyota Vietnam with 5,532 units, or 22.6 percent. 

Industry experts predict around 28,000 cars will be sold per month in the remainder of the year, therefore, total sales for the entire year could reach 300,000.

Lai Chau hydropower plant’s last turbine becomes operational

The 400 MW capacity turbine No.3 of the Lai Chau hydropower plant in the northern mountainous province of Son La, officially joined the national grid on November 9.

Contractors are currently carrying out necessity tests, towards generating commercial power in the turbine.

The third largest of its kind, located in the upper reaches of the Da River, the Lai Chau hydropower plant has total investment of 35.7 trillion VND (1.6 billion USD).

The three-turbine plant has a capacity of 1,200 MW. It will supply over 4,670 million KWh of electricity to the national grid per year when all of its three turbines are operational.

The multi-purpose hydropower project is also designed to prevent floods in the rainy season, and provide water to the Red River Delta in the dry season, contributing to development in Lai Chau province, and the northwest region.

The launching of the turbine lays an important foundation for fulfilling the project in 2016, a year ahead of schedule.

The plant’s turbines No. 1 and 2 became operational in December 2015 and June this year, respectively.

Opportunities, challenges to Vietnam in ASEAN Economic Community

A scientific seminar “Vietnam joins ASEAN Economic Community (AEC): opportunities, challenges and solutions” took place in Hanoi on November 9. 

Founded on December 31, 2015, the AEC was built on political-security, economic and socio-cultural pillars, towards building a politically-connected, people-oriented community with vibrant economic growth. 

Since joining the ASEAN in 1995, Vietnam has been an active member and has made significant contributions to the bloc. 

With the birth of the AEC, ASEAN has become a common and united market that facilitates trade, services, investment, science-technology, labour, employment, innovation and institutional reform, pushing Vietnam’s global economic integration. 

However, the AEC also poses challenges to Vietnam, including big gaps in economic power, science-technology standards and workforce quality between Vietnam and ASEAN, experts said at the seminar. 

Participants discussed the competitiveness of businesses and the Vietnamese economy in the AEC and the world, and proposed measures to improve Vietnam’s competitiveness. 

The event, held by the Ho Chi Minh National Academy of Politics, allows scientists, policymakers and the business community to identify both opportunities and challenges, and recommend corresponding solutions.

 People's credit funds to be ranked

People’s credit funds in Vietnam are to be assessed and ranked annually under a circular being prepared by the State Bank of Vietnam (SBV).

The ranking will be out of 100 points, with criteria including Equity 10 points, Asset Quality 30 points, Administration, Management and Control 30 points, Business Results 10 points, and Solvency 20 points.

The draft circular also regulates the detailed scoring in each criterion.

Those receiving total scores of over 80 will receive Rank A (Good), from 70 to 80 Rank B (Fairly Good), from 60 to 70 Rank C (Average), and below 60 Rank D (Weak).

If a people’s credit fund were to receive zero points in two criteria it would lose one rank.

Rankings will be conducted annually and the first will be completed prior to April 31 next year. The central bank can also arrange for a new ranking assessment to be conducted at any time when requested to do so by their Supervisory Board and SBV branches.

Within five days of the rankings being finalized, SBV branches in cities and provinces and the departments of inspection and supervision of domestic credit institutions will report to the SBV Governor on the ranking results of people’s credit funds in each locality, through the Banking Supervision Agency under the SBV. In July every year the SBV Governor will approve the rankings.

The draft circular is being prepared as some credit institutions are in financial distress and earlier this year SBV Deputy Governor Nguyen Phuoc Thanh announced that the central bank was considering allowing ailing financial companies and people’s credit funds to declare bankruptcy.

Last February, the Tho Loc People’s Credit Fund in Hanoi’s Phuc Tho district was put under comprehensive special supervision by the SBV for three months as it faced insolvency and could not cover deposits. It had committed numerous violations in financial management and credit provision, damaging its financial status and business performance, according to the SBV.

A people’s credit fund is a type of cooperative credit institution operating on the principles of voluntary participation, self-management, and self-responsibility for its operating results, fulfilling the basic objectives of providing mutual assistance between members to develop the strength of the collective and with each member helping other members to conduct efficient production and business activities and service provision and to improve living standards. Activities of a people’s credit fund must ensure that expenses are covered and profit is accumulated in order to develop.

The total amount of lending to one customer must not exceed 15 per cent of the people’s credit fund’s total assets and the total lending to one customer and a related party must not exceed 25 per cent.

As at the end of 2015 there were more than 1,200 people’s credit funds in Vietnam.

Agriculture, trade ministries sign MoU on agro-forestry-fisheries

A memorandum of understanding to enhance cooperation in promoting the production and consumption of agro-forestry-fisheries for 2016-2020 was signed in Hanoi on November 9 between the Ministry of Agriculture and Rural Development and the Ministry of Industry and Trade. 

Accordingly, the two ministries will work closely together to improve output, quality and added value; lift non-tariff barriers; promote trade and brand building; fight smuggling and counterfeits; strengthen State management and develop craft villages, among others. 

Minister of Agriculture and Rural Development Nguyen Xuan Cuong said between now and the year’s end, both sides will direct producing and consuming vegetables, pork meat, milk, shrimp, tra fish and rice, towards lifting the export of agro-forestry-fisheries to 31 billion USD above. 

Over the past years, the two ministries have adopted trade defence measures, conducted trade promotion programmes at home and abroad, electrified rural areas, and invested in irrigation for agriculture.

Vietnam introduces products at Indonesia food expo

Vietnam is showcasing a range of food and drink products at the SIAL InterFood 2016, which kicked off in Jakarta, Indonesia, on November 9. 

The annual event is featuring more than 1,000 pavilions of 30 countries and territories around the world. It is a leading expo of its kind in Southeast Asia with a view to introducing food and beverage products, food additives, raw materials, processing technology, and relevant services. 

SIAL InterFood 2016 is expected to offer a great opportunity for enterprises to seek partners and expand markets. 

Vietnamese businesses like Hapro, Trung Nguyen and An Thai Group are also displaying their flagship products such as pepper, cinnamon, anise, rice, coffee and tea. 

Nguyen Thi Thu, an executive of the Alpha International Food Joint Stock Company, said her firm comes to the event to promote pie products as it perceives that Indonesia is a potential market. 

Various activities will be held on the sidelines of the expo, including workshops, conferences, promotion activities, and fairs specialising in tea and coffee, wine, sweets, food for health, and seafood. 

More than 40,000 visitors are expected to call at the expo, which is scheduled to last through November 12.

Vietnamese light industry zone opens in Moscow

A Vietnam light industry zone was inaugurated in Serpukhov city, Russia’s Moscow Region on November 8, hosting garment and textile firms that employ 280 workers, most of whom are Vietnamese. 

The zone covers an area of about 2 hectares and will be expanded in the future. Each month, factories in the zone supply about 60,000 products to the market with a value of about 40 million ruble (627,741 USD). 

The project is also expected to become a friendship bridge for Russian and Vietnamese people, while solving illegal labour problems. 

Addressing the launching ceremony, Moscow Region Vice Governor Denis Butsaev said that Moscow strongly supports this important project, which was initiated in 2013, as well as pays attention to developing its partnership with Vietnam in general. 

Vietnamese businesses are operating actively in Moscow’s outskirts with many investment projects in various fields, including light industry, he noted. 

The inauguration of the zone reflects efforts of Vietnamese investors in making their business operation in the host country transparent and legal, he said. 

For his part, Vietnamese Ambassador to Russia Nguyen Thanh Son thanked leaders of the Moscow Region for backing Vietnamese enterprises. He held that the operation of the zone is the continuity of the active cooperation between Vietnamese localities and Moscow. 

Last year, leaders of Moscow Region and Ho Chi Minh City signed an agreement on the establishment of the light industry zone, he said, revealing that administrative procedures for the project are being finalised. 

On the occasion, the diplomat asked the Vietnamese community working in the zone to abide by the law of the host country, thus fostering the friendship and comprehensive cooperation between the two countries.

PetroVietnam’s 10-month profits surpass annual target

The National Oil and Gas Group (PetroVietnam) earned 367.2 trillion VND (equivalent to 16.5 billion USD) in revenues in the first ten months of 2016, 5 percent higher than the target set for the period and fulfilling 84 percent of its yearly goal.

The group’s after-tax profits hit 18 trillion VND (some 800 million USD), 11 percent higher than the target set for the year. 

In the period, PetroVietnam’s subsidiaries exploited 23.4 million tonnes of oil equivalent, equal to 91.3 percent of the annual target. 

Production of other products also surpassed its goals in the reviewed period, with electricity; nitrate and gasoline outputs achieving 17.6 billion KWh, 1.3 million tones and 5.6 million tones, respectively.

A sharp drop in oil prices has impacted on PetroVietnam’s revenues, profits and exploitation and production activities. The group has also met with difficulties in performing several key investment projects. 

However, the group has taken many measures to better its administration and production, focusing on financial, business and market management, and investment plans. 

It has planned to exploit 6.5 million tonnes of oil equivalent, including 3.9 million tonnes of crude oil and 2.6 billion cubic metres of gas in the fourth quarter of this year. 

The plan aims to lift the total output in the year to 27.6 million tonnes of products, raking in 514 .5 trillion VND (23.15 billion USD) in revenues and contributing 104.2 trillion VND (4.7 billion USD) to the State budget.

Workshop seeks to boost exports to China

A workshop was held in Hanoi on November 9 to promote exports to China and draw Chinese investment into Vietnam.

The workshop updated domestic exporters on information on China’s markets as well as business opportunities, according to Deputy Director of the Vietnam Trade Promotion Agency (Vietrade) Do Kim Lang. 

Head of the Vietrade Office in China’s Chongqing city Dao Viet Anh highlighted advantages for promoting trade exchange between the two countries, saying that China has a huge demand for Vietnamese agri-forestry-fishery products such as rice, cassava, rubber, fruits, tea, shrimp and catfish. 

However, Vietnamese enterprises encountered numerous obstacles to export goods to the Chinese market such as tariff, quarantine, and lack of information, Anh said, adding that they should work closely with relevant Vietnamese agencies in trading with Chinese partners. 

Anh suggested enterprises study further Chinese regulations and requirements on imports as well as tastes of Chinese consumers, while actively joining trade promotion events to expand their markets. 

According to the General Department of Vietnam Customs, trade value between Vietnam and China reached 66.6 billion USD in 2015, up 13.4 percent from 2014. Vietnam exported 17.1 billion USD worth of goods and imported 49.5 billion USD worth of goods, up 14.8 percent and 13.3 percent, respectively. 

Vietnam had by the end of July become the biggest trade partner of China in ASEAN, with a total trade value hitting 52.26 billion USD, down 1.3 percent from the same period last year. 

Meanwhile, China exported 33.52 billion USD worth of goods to Vietnam, a 7.9 percent increase on year, and imported 18.74 billion USD worth of goods from Vietnam, a year-on-year increase of 13.1 percent. 

The workshop event was organised by Vietrade in collaboration with its office in Chongqing city.

Vietnam int’l jewelry fair opens in Ho Chi Minh City

The Vietnam International Jewelry Fair, the 25th of its kind, opened in Ho Chi Minh City on November 9 with nearly 200 stalls, up 10 percent from 2015. 

More than 70 percent of exhibitors are major domestic brands from Hanoi, Hai Phong, Vinh Phuc and Tay Ninh while the remaining are from Italy, Turkey, Thailand, India and Hong Kong. 

They offered 1-30 percent discounts and a number of gifts to buyers, and introduced materials, equipment, technology, and post-sale services. 

The organising board also designed reception and negotiating areas for suppliers, distributors and importers. 

The fair was hosted by the Saigon Jewelry company under the auspices of the Vietnam Gold Traders Association and the Saigon Jewelry Association.

Food & drink fair opens in Hanoi

The Vietfood & Beverage – ProPack Fair opened on November 9 in Hanoi, drawing the participation of 180 enterprises from 11 countries and territories. 

The event, which will last until November 12, features 200 booths of enterprises from the Republic of Korea, Thailand, Malaysia, Italia, Denmark, Spain, and China. 

It also sees the presence of domestic famous brands such as Golden Farm, Minh Tien and Sen Viet coffee, Chinh Son tea, Minh Trung food and black garlic. 

Speaking at the opening ceremony, Le An Hai, deputy head of the Asia-Pacific Market Department, affirmed the fair aims to boost trade between domestic and foreign businesses.

It offers a good chance for local producers to expand markets and boost exports while helping foreign ones seek their distributors in Vietnam.

Hai said food and beverage is one of the industries with rapid growth in terms of quality and quantity and has great potential for development in Vietnam.

SMEs become more active in global chain production

Small-and medium-sized enterprises (SMEs) have become more confident and active to get engaged in the global production value chain, heard a workshop in Hanoi on November 9.

According to the Central Institute for Economic Management (CIEM), the ratio of enterprises withdrawing from the market stood at 8.2 percent per annum over the past three years.

The number of newly-established firms has increased in the 2010-2015 period, while the rate of employment also registered a rise of 5.2 percent, the CIEM said.

The positive outcomes were attributed to the support policies, especially the enforcement of the Law on Investment and the Law on Enterprises.

Experts also pointed to existing shortcomings such as the small-scale operation, low productivity and application of new cutting-edge technologies, poor-quality products, and limited competitiveness.

They said a single business line brought higher economic efficiency and profits for businesses than multiple business lines.

In the context of global integration, it is a good idea for SMEs to concentrate on a specific field to make inroad into the most suitable market segment, the panel recommended.

Vice President of the CIEM Phan Duc Hieu said improving the business-investment climate is imperative to realise the target of having one million effectively operational businesses by 2020.

Sustainability forum highlights fundamental role of private sector

Hundreds of business executives gathered at the opening of the 2016 Vietnam Corporate Sustainability Forum in Hanoi on November 8 aimed at developing a set of private sector commitments to achieve permanence.

The overarching goal of the forum is to strengthen collaboration among the public, private and social sectors, said Deputy Prime Minister Vu Duc Dam in his keynote address.

At the conclusion of the forum we need to have a list of voluntary private sector commitments to cover areas affecting sustainability ranging from low- or no-carbon footprints to reforestation as well as business plans for subsistence farmers and renewal of freshwater sources.

In addition, the Deputy PM underscored the importance of multi-stakeholder collaboration in making transformational changes on energy, water, food, women’s empowerment and other issues, and the power of private sector innovation to scale up and sustain progress.

Tran Hong Ha, minister of Natural Resources and Environment in turn spoke about the importance of launching a new corporate policy framework to assist companies in the development, implementation, and disclosure of policies and practices related to ecosystems and biodiversity.

Most significantly, he said, there must be a commitment to develop national voluntary business principles of good practice and policy for sustainable agriculture and commitments by higher education institutions in principles for responsible management of training.

Minister Ha also told the audience of the nation’s plan to implement the Paris Agreement on Climate Change, affirming the responsibility of Vietnam in working together with the international community in response to global climate change.

Marubeni and KEPCO a step closer to first-of-its-kind power plant in Vietnam

The consortium of Japanese company Marubeni Corporation and Korea Electric Power Corporation (Kepco) on November 8 signed the investment agreement for Nghi Son 2 thermal power plant in the central province of Thanh Hoa.

Nghi Son 2 is the first international tender for a large-scale coal-fired power plant in Vietnam. The project is going to be carried out under the build-operate-transfer (BOT) format.

The $2-billion plant will be located in the province’s Nghi Son Economic Zone. It will have a capacity of 1,200MW, produced by two units of 600 MW each. 

At the moment, the consortium is awaiting the investment certificate and is arranging the finances for the project. Though the ground-breaking ceremony was held in September 2015, the project has yet to secure a range of agreements to complete the BOT contract package. 

Most recently, in June, the consortium signed the land rental agreement with the management boards of Nghi Son Economic Zone and the Thanh Hoa Industrial Zones Management Authority. 

According to Moroo Shino, general manager of the Overseas Power Project Department at Marubeni Corporation, the actual construction is expected to start next year and will be finished within four years.

“With the signing we are one step closer to implementing the project,” said Bong Sooha, executive vice president and chief global officer of KEPCO, in his speech at the ceremony.

“The MoIT hopes that the Ministry of Planning and Investment and the Thanh Hoa People’s Committee will facilitate the licensing of the project,” said Deputy Minister of Industry and Trade Ho Thi Kim Thoa.

Addressing concerns about possible pollution, Marubeni’s Shino said that the plant is going to use supercritical technology which “is very advanced compared to the ones that are causing pollution in China and India.”

“The [supercritical] technology is very common. It is the same one we use in Japan where there are no environmental issues,” he said.

Vietnam tries to create favorable business environment

Over the past two years, Vietnam has focused on increasing competitiveness and improving the local business environment to develop a sustainable economy.

The government and authorities at all levels are working to create favorable conditions for domestic and foreign enterprises and investors. 

Since the beginning of this year, Vietnam has had more than 10,000 new enterprises with a total registered capital of nearly US$3.7 billion. The number of businesses resuming operations in October was also nearly 2,000.

The figure reflects the Government's persistent effort to improve the business climate. According to the World Bank’s annual Doing Business report released late last month, this year Vietnam ranks 82 out of 190 economies globally, up 9 notches since last year. The report measures the ease of doing business in each of 190 economies. 

In a recent report, the Hongkong and Shanghai Banking Corporation (HSBC), said Vietnam is capable of holding a leading position in Asia in terms of GDP growth thanks to its manufacturing and exports. A report on Southeast Asia’s production by Japan's Nikkei news agency showed business conditions in Vietnam’s manufacturing sector continuing to improve.  Moody's credit rating for Vietnam is B1, with a stable outlook.  

Mac Quoc Anh, Vice President of the Hanoi Small and Medium Enterprises Association, said that last year’s revised law adjusting legal documents on investment and business has removed a series of barriers to the market economy and Vietnam’s integration commitments, creating a more transparent and fair environment for businesses and investors.

Quoc Anh said “The Hanoi Business Association and related government agencies regularly organize forums or meetings with enterprises. Questionnaires have also been sent to businesses to determine their administrative procedure difficulties relating to land, customs, or taxation."

In late April, the government issued a resolution, setting key tasks and solutions to improve the business environment to enhance national competitiveness with a vision until 2020.

Deputy Prime Minister Vuong Dinh Hue has asked local authorities to focus on supporting SMEs and start-up movements to attract more foreign direct investment.

"Early this year, the government issued a decision on the national start-up ecosystem and is preparing to submit to the National Assembly amendments to many existing laws relating to the investment and business climate to remove obstacles for businesses," said Mr. Hue.

At a recent meeting, the Vietnamese government focused on institution building, especially the issuance of documents specifying how to apply revisions to the Law on Enterprises and the Investment Law.  

Japanese enterprises study investment environment in Ha Nam

A delegation of the Kansai Association of Corporate Executives led by Akihiro Kuroda, Chairman of the Kokuyo Corporation, visited the northern Ha Nam province on November 8 to learn about investment environment in the province.

Nguyen Xuan Dong, Chairman of the provincial People’s Committee, introduced the delegation to the location, potential and advantages of the province and stressed that the Dong Van III support industry park is reserved for Japanese enterprises.

Dong said the province gives top priority to Japanese enterprises, especially small and medium-sized enterprises.

japanese enterprises study investment environment in ha nam hinh 0 He said the province has prepared infrastructure, land fund, policy and human resources in line with its 10 commitments to foreign investors.

A hot line and a support centre for Japanese enterprises have been launched to address any emerging problem facing Japanese enterprises.

On his part, Akihiro Kuroda said Vietnam is an attractive investment destination for Japanese enterprises given its stable political situation and strong and balanced economic development.

Appreciating Ha Nam province’s investment policies and 10 commitments to foreign investors, Kuroda pledged to introduce the province to Japanese investors in general and investors in Kansai in particular.

According to him, the Kansai Association of Corporate Executives has a history of 70 years with around 800 members.

ROK processed food industry bullish on Vietnam

Vietnam is an ideal market for Republic of Korea (ROK) food and agribusinesses, said Im Chang Ho, a leader from Gyeongnam Province at a Vietnam-Korea trade exchange forum on November 8 in Ho Chi Minh City.

Mr Ho said processed foods from the Province are universally recognized around the globe for their consistent high quality and safety.

At present, consumers in Vietnam are very fond of the Province’s ginseng products, fruit juice and natural beauty products, which has opened innumerable opportunities for them to expand their footprint in the country.

Tran Ngoc Liem, deputy director of the Vietnam Chamber of Commerce and Industry branch in HCM City, in turn emphasized the need to learn from the experiences of businesses from the Province.

Their experiences will help local businesses access advanced proven production technologies, which will help to increase quality and value of farm produce of local companies, noted Mr Liem.

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