WB assists Vietnam’s tax reform

A delegation from the World Bank (WB) recently worked with Vietnamese partners to prepare for a project modernising the tax system in Vietnam, according to Deputy Finance Minister Do Hoang Anh Tuan.

The project, worth 4.1 million USD, is funded by the Japanese Government through the Policy and Human Resources Development Fund, with the WB entrusted to receive the funds and disburse them to Vietnam.

The WB delegation and Vietnamese partners also discussed potential projects to improve tax management in Vietnam.

Recently, Prime Minister Nguyen Xuan Phuc issued a directive assigning the Finance Ministry to build a Government decree on e-invoices and submit it to the Government before October.

The e-invoice system is expected to help tax offices improve tax collection, increase transparency and prevent fraud.

PV Power to embark on thermal power plants

The PetroVietnam Power Corporation (PV Power) is embarking on the construction of nine thermal power plants under the adjusted Power Development Plan VII. 

PV Power General Director Nguyen Xuan Hoa said the plants have a total capacity of 5,250MW, using domestic and imported gas. 

They include Kien Giang 1, Kien Giang 2, Nhon Trach 3, Nhon Trach 4, Mien Trung 1, Mien Trung 2, Son My 2.1, Son My 2.2, Son My 2.3 plants. 

Hoa said PetroVietnam is seeking Prime Minister’s permission to allow PV Power to invest in Nhon Trach 3 and Nhon Trach 4 plants while others are still invested by PetroVietnam. 

Currently, PV Power is devising a plan to provide funding for Nhon Trach 3 and Nhon Trach 4 with a total investment of around 1.4 billion USD, 20 percent of which will be sourced from the upcoming equitisation of Hua Na, Dakdring and Nhon Trach 1 plants.  

The PetroVietnam has assigned the PetroVietnam Gas Corporation (PV Gas) to negotiate gas import deals.

Electricity demand in the south is forecast to grow 11 percent this year.

HCM City’s industrial development index up 7.5 percent

Ho Chi Minh City’s industrial development index in the first half of this year expanded 7.5 percent year-on-year, the highest rise in the past five years, reported the municipal People’s Committee. 

The growth is fuelled by mechanical engineering-manufacturing, electronics, chemical-rubber-plastic and food processing sectors, which rose 9.72 percent, higher than the average figure. 

Specifically, the mechanical engineering-manufacturing expanded 17.5 percent as compared to the same period last year thanks to the use of modern and competitive equipment.  

Meanwhile, the electronics and information technology sector grew 12.4 percent, and the food processing up 4.9 percent. 

Pham Thanh Kien, Director of the municipal Department of Industry and Trade, attributed the growth to the city’s industrial development policy, including providing financial assistance, forming connectivity between supporting industry and manufacturing firms, and attracting investment in industrial parks and clusters. 

The city has also built a database on the supporting industry, particularly those regarding mechanical engineering enterprises. 

The city’s total electricity consumption during the period was estimated at 11.6 billion kWh, up 2.86 percent year-on-year. Up to 205.6 million kWh were saved, or 57.11 percent of the target. 

HCM City-based businesses’ export value reached 4.6 billion USD, up 79.6 percent while imports hit 4.15 billion USD, marking a 69.2 percent increase.

APEC member economies adopt statement on sustainable tourism

Member economies of the Asia-Pacific Economic Cooperation (APEC) Forum adopted a statement on sustainable tourism development during the APEC High Level Policy Dialogue on Sustainable Tourism held in the northeastern province of Quang Ninh on June 19.

Deputy Minister of Culture, Sports and Tourism Huynh Vinh Ai told reporters that the statement has a significant meaning and delivers a message of strongly supporting principles and actions to promote sustainable tourism. Under the statement, APEC member economies acknowledge sustainable tourism development is a continuous process that requires constant impact monitoring.

They agreed to foster regional and domestic tourism policies that support the United Nations Sustainable Development Goals (SDGs) and encourage viable, long-term economic contributions of travel and tourism in providing socio-economic benefits to all stakeholders.

The APEC members suggested respecting socio-cultural authenticity of host communities, conserving their built and living cultural heritage and traditional values, and contributing to inter-cultural understanding and tolerance.

It is also recommended making optimal use of environmental resources that constitute a key element in tourism development, maintaining essential ecological processes, conserving natural features and resources and biodiversity, and creating competitive and enabling environments for all tourism-related enterprises, and particularly micro-, small- and medium-sized enterprises.

The bloc proposed conducting further studies to enable APEC member economies to apply new advanced technologies for smart, sustainable and inclusive tourism development, especially in tourism human resource development and tourism management.

The APEC High Level Policy Dialogue on Sustainable Tourism is an initiative of Vietnam in order to realise the APEC Strategy for Strengthening Quality Growth and implement one of the four priorities of APEC cooperation in 2017 – which is promoting sustainable, innovative and inclusive growth. It is also a major contribution to the International Year of Sustainable Tourism for Development set by the United Nations.

Tourism cooperation among APEC members officially began in 1991 with the establishment of APEC Tourism Working Group. In 2000, the APEC Tourism Charter, an important document providing long-term direction for the APEC tourism cooperation, was adopted at the first APEC Tourism Ministerial Meeting in the Republic of Korea.

In 2016, Vietnam hosted the fourth APEC Tourism Ministerial Meeting in central Quang Nam province’s Hoi An city, which adopted the “Hoi An Declaration on the Promotion of APEC Tourism Cooperation”. The country has also regularly and actively participated in most important activities of APEC tourism cooperation and promoted bilateral ties with APEC member economies. 

To date, Vietnam has exempted entry visas for nine APEC member economies and implemented electronic visas for three other countries. Top ten source markets of Vietnam in 2016 are APEC member economies.

Established in 1989, APEC comprises 21 economies, including Australia, Brunei, Canada, Chile, China, Hong Kong, Indonesia, Japan, the Republic of Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, the Philippines, Russia, Singapore, Taiwan, Thailand, the US and Vietnam.-     

Seminar discusses software-based land data system

A seminar discussing the launch of a scheme on strengthening the capacity of land pricing and land price information system based on Vietlis software took place in Hanoi on June 19. 

Speaking at the event, Director of the Korea International Cooperation Agency (KOICA) in Vietnam Kim Jinoh said the scheme is the second stage of a project on providing technical support for building a multi-purpose land data management system signed between the Vietnamese and Korean governments in September 2013. 

He expressed his hope that the scheme, which will last two years in Tu Son township in the northern province of Bac Ninh, Hai Chau district in the central city of Da Nang, Binh Xuyen district in the northern province of Vinh Phuc and O Mon district in the Mekong Delta city of Can Tho, will soon be launched. 

Deputy Minister of Environment and Natural Resources Nguyen Thi Phuong Hoa said the scheme is a joint effort between the Ministry of Environment and Natural Resources (MoNRE) and KOICA in Vietnam with a view to making breakthroughs in administrative reform in land management in the country. 

She hailed coordination among authorities and departments of environment and natural resources of cities and provinces involving in the project. 

Representatives from the Korean Ministry of Land, Infrastructure and Transport and the Vietnam Directorate of Land Administration introduced land data system in the Republic of Korea and Vietnam’s demand for land pricing, respectively.

The event was co-hosted by the MoNRE and KOICA in Vietnam.    

Algerian firms updated on business opportunities in Vietnam

Algerian businesses have been updated on Vietnam’s prestigious export firms, export-import related regulations and business opportunities at a recent meeting in Oran city with Vietnamese Ambassador to Algeria Pham Quoc Tru.

At a working session between Ambassador Tru and Chairman of the Oran Chamber of Commerce and Industry Mouad Abed, both sides introduced the potential for economic links between the two nations and discussed ways to boost bilateral ties. 

Mouad Abed lauded the visit, saying that this is a good chance for Algerian firms to learn more about the Vietnamese market. 

He also introduced his country’s economic reforms, which focus on diversifying the economy to minimise dependence on the oil industry. 

Algeria is looking to develop non-petroleum sectors such as agriculture, industry, construction, tourism, ICT and renewable energy, he said. 

On the occasion, Ambassador Tru informed participants about activities to be held by the two countries to celebrate the 55th anniversary of diplomatic ties, including the 11th session of the Vietnam-Algeria Intergovernmental Committee for economic cooperation scheduled for September in Alger.

The two sides agreed to urge the two Governments to create favourable conditions for enterprises to bolster cooperation, concentrating on perfecting legal frameworks, spreading market information, making it easy for businesses to participate in international fairs and exhibitions and settling trade-related disputes.  

During their stay, the delegation worked with representatives from the international fair and exhibition centre, during which director of the centre Ouaed Mohamed called on Vietnamese enterprises to attend trade events in the city. 

In his reply, Ambassador Tru said the embassy will send a list of international fairs held in Vietnam to the centre and pledged to facilitate the two sides’ enterprises’ attendance at fairs and exhibitions in each country.

The Vietnamese diplomat led a delegation to visit Oran city from June 15-17, aiming to step up economic and trade cooperation between Vietnam and Algeria and with Oran in particular.

Quang Ninh seeks to tap tourism potential during APEC Year 2017

The organisation of the APEC High Level Policy Dialogue on Sustainable Tourism in Ha Long city is an excellent opportunity for Vietnam in general and Quang Ninh province in particular, to seek and deepen relations with APEC member economies and other important foreign partners.

Chairman of the northeast province's People’s Committee Nguyen Duc Long made the remark at the opening ceremony of the dialogue on June 19.

He said as host of the National Tourism Year in 2018 and the ASEAN Tourism Forum in 2019, Quang Ninh province will do its utmost to successfully organise the events.

The Chairman welcomes the tourist community from APEC member economies to Quang Ninh – a land of potential and a destination for tourists around the world. 

Quang Ninh has a special geopolitical and economical position with the world natural heritage site of Ha Long Bay as well as more than 600 natural landscapes and historical relic sites.  

In the process of development, Quang Ninh has to develop the mining industry and at the same time protect the environment, especially at the Ha Long Bay, Long said. 

He went on to say that local authorities have clearly defined challenges that need to address such as the high urbanisation rate and the sustainable development in the context of climate change and rising sea level.

To obtain sustainable development, Quang Ninh has implemented breakthrough strategies such infrastructure improvement, institutional reform, and human resources training in addition to changing growth models and restructuring the economy, he said.

Under the Overall Plan for Tourism Development in Quang Ninh to 2020 and Vision to 2030, Quang Ninh strives to become an international tourism centre and a leading tourism destination in Vietnam with modern infrastructure and diverse, high quality and competitive tourism products.

By 2020, Quang Ninh aims to welcome 15-16 million tourists, including seven million foreigners, and rake in 30-40 trillion VND (1.3-1.7 billion USD) in revenue. The tourism sector is expected to contribute 14-15 percent to the gross regional domestic product (GRDP).

In 2016, Quang Ninh welcomes 8.3 million tourist arrivals, a year-on-year increase of seven percent, and earned over 13 trillion VND (571 million USD) in revenue, up 23 percent, according to the Quang Ninh Department of Tourism.

Particularly, Ha Long welcomed 6.3 million tourists and grossed 7.7 trillion VND (over 338 million USD) in revenue, representing respective increases of 14 percent and 65 percent from the previous year. About 2.7 million of the visitors were foreigners, a year-on-year growth of 16 percent.

Experts, entrepreneurs to join Vietnam business development forum

The Vietnam Business Development Forum 2017 will be held on June 22 by the Economy and Forecast Review run by the Ministry of Planning and Investment, with about 400 delegates from ministries, sectors and major businesses expected to attend.

The event aims to discuss the world and domestic economy and production organisation and economic structure towards making more products with high added value and encouraging firms to expand their businesses and enhance added value in their products.

At the same time, the participants will debate issues related to corporate development and seek ways to make Vietnam a leading country in terms of research, renovation and developing high quality products.

The event will be organised with the coordination of Associate Prof. Dr. Tran Dinh Thien, head of the Vietnam Institute for Economics, and attended by leading experts, including Associate Prof. Dr. Ho Sy Hung, head of the Department for Enterprise Development, Dau Anh Tuan, head of the Legal Department of the Vietnam Chamber of Commerce and Industry and Dr. Tran Thi Hong Minh, head of the Department for Business Registration Management under the Ministry of Planning and Investment.

APEC 2017 offers opportunities for Vietnam to promote tourism

Vietnam has promptly seized every opportunity to promote tourism as the country is hosting the Asia-Pacific Economic Cooperation (APEC) Year 2017, said an official.

Tourism has been considered a key factor in selecting venues and agenda for the APEC Year 2017 events, Deputy Minister of Culture, Sports and Tourism Huynh Vinh Ai said at a press conference held at the end of the APEC High Level Policy Dialogue on Sustainable Tourism in northeastern Quang Ninh province on June 19.

The dialogue and the Technical Workshop on Sustainable Tourism organised within the framework of the first APEC Senior Officials Meeting (SOM 1) in the central coastal province of Khanh Hoa in February, are among initiatives put forth by Vietnam to contribute to boosting tourism cooperation among APEC member economies while responding to the International Year of Sustainable Tourism for Development set by the United Nations, he stressed.

Tourism development will continue be included in the upcoming APEC events, particularly in the framework of the APEC Economic Leaders Meeting, which is scheduled to take place in the central city of Da Nang in November.

The ten venues to host APEC Year 2017 events are those with renowned tourism attractions and cultural values across the nation, including Hanoi, Quang Ninh, Ninh Binh, Thua Thien Hue, Quang Nam, Da Nang, Khanh Hoa, Can Tho and Ho Chi Minh City.

The deputy minister noted that during the official APEC 2017 events, Vietnam has introduced the images of its people, landscapes, cultural values and high-end infrastructure facilities to participating international delegates.

Besides, the tourism sector has also organised numerous activities to boost interactions between APEC delegates and local communities such as free tours to popular destinations, offering souvenirs, photo exhibitions, among others, he added. 

Vietnam has regularly and actively participated in mostly all important activities of APEC tourism cooperation with APEC member economies. To date, Vietnam has exempted entry visa for nine member economies and implemented electronic visas for three other economies, creating favourable conditions for travelers.

In 2016, top ten source tourism markets of Vietnam are APEC member economies. Vietnam welcomed a record number of 10 million international visitors in the year, including over 8.1 million foreign tourists, or 81 percent from APEC economies, including China, Russia, Japan, Australia, the Republic of Korea and the US.-VNA

APEC members advised to step up technological application in tourism

Member economies of the Asia-Pacific Economic Cooperation (APEC) should step up the application of technologies in regional tourism development amid the Fourth Industrial Revolution 4.0 (FIR), a Vietnamese expert said.

At the APEC High Level Policy Dialogue on Sustainable Tourism that took place in  northeastern Quang Ninh province’s Ha Long city on June 19, General Director of the DTT Technology Group Nguyen The Trung, who is also member of the Government FIR Working Group, highlighted advantages of applying artificial intellectual (AI) and technologies in the tourism sector.

According to the expert, the FIR gives people more free time and saves labour force, thus increasing the demand for travel. It also enables new areas for tourism development, such as space tours and blended travel.

APEC economies should impose cross border digital management in order to boost travel information exchanging, and facilitate data management, he said.

One-door policies have been applied in the fields of transport, healthcare, agriculture and trading in the Association of Southeast Asian Nations (ASEAN), Trung said, suggesting that APEC economies should also do the same in tourism cooperation.

APEC members should also launch an information portal to share their best practices and connect cross-border campaigns on sustainable and responsible tourism, as well as promote the region’s tourism potential, he said.

More cultural exchanges should be conducted among APEC members to enhance understanding among regional people, so that locals can provide better and more relevant support for tourists, thus luring more visitors from APEC members.

To date, Vietnam has exempted entry visa for nine member economies and implemented electronic visas for three other economies, creating favourable conditions for travelers.

In 2016, top ten source markets of Vietnam are APEC member economies. Vietnam welcomed a record number of 10 million international visitors in the year, including over 8.1 million foreign tourists, or 81 percent from APEC economies, including China, Russia, Japan, Australia, the Republic of Korea and the US.

TCC Group asked to support Vietnamese goods’ entry into Thailand

Prime Minister Nguyen Xuan Phuc has asked Thailand’s TCC Group, as a big retailer, to create conditions for high-quality goods and agricultural products of Vietnam to be sold in its supermarkets.

Receiving TCC Chairman Charoen Sirivadhanabhakdi in Hanoi on June 18, he recognised the group’s successful business activities and tax payment of 100 million USD in Vietnam.

He expressed his hope that TCC, as a famous brand in Thailand, will serve as an example for foreign investors in complying with tax regulations, especially in preventing transfer pricing and tax evasion.

PM Phuc welcomed the group’s intention to do long-term investment in Vietnam, affirming that Vietnam is a market economy where the State ensures business freedom and provides the best possible conditions for investors, including TCC, in the win-win spirit.

For his part, Chairman Charoen Sirivadhanabhakdi said his group is determined to expand its retail market share in Thailand, which can be seen through the recent purchase of Big C Thailand. 

The move will help TCC sell Vietnamese products, including farm produce, in Thailand, he said, noting that the firm has set up a division specialising in export activities in Vietnam.

He added TCC is very interested in the business of beer and wants to bring Vietnam’s beer brands to international markets as the country has long-standing beer brands with good quality.

The entrepreneur said he hoped the Vietnamese Government will facilitate his group’s investment and business activities in Vietnam, including the export of Vietnamese goods to Thailand.

Solar PV rooftops to help meet energy targets

Vietnam has very favourable conditions to develop solar energy across the country, but it needs an economical, technically feasible net-metering scheme to promote solar PV rooftops in the country, experts said.

Net-metering is a system in which solar panels or other renewable energy generators are connected to a public-utility power grid and surplus power is transferred onto the grid, allowing customers to offset the cost of power drawn from the utility.

It also allows consumers who generate some or all of their own electricity to use that electricity anytime, instead of when it is generated.

Foreign and Vietnamese experts met on June 16 at a workshop held in Hanoi to discuss the development of a net-metering policy for solar energy in Vietnam.

Experts on policy-making, regulations, business and international development, including those from the European Energy Initiative Partnership Dialogue Facility (EUEI PDF), the Electricity Regulatory Authority (ERAV) and the Electricity of Vietnam attended the workshop.

The first stakeholder workshop was held by the EUEI PDF in collaboration with the ERAV.

The EUEI PDF is providing technical assistance to the ERAV to boost the promotion of solar PV rooftops, or a photovoltaic system that has its electricity-generating solar panels mounted on the rooftop of a residential or commercial building or structure.

As part of the Government’s strategy to boost the development of renewable energy in Vietnam, which was approved in 2015 by the then Prime Minister Nguyen Tan Dung, and following the introduction of an electricity tariff for the solar energy in April this year, the ERAV under the authorisation of the Ministry of Industry and Trade was completing the regulatory framework necessary for the country to fully deploy its solar power potential, including a net-metering policy, said Dr Dinh The Phuc, ERAV Deputy Director-General.

He said that with support from the EUEI PDF, and experts sharing their experiences, the EARV would achieve the target of setting up a feasible net-metering scheme that is economical and technically sound.

Head of Cooperation and Development of the EU Delegation, Alejandro Montalban, said Vietnam had an ambitious target to capitalise on its solar potential and had shown the political will to achieve it.

“With the support and international insights provided by the EUEI PDF, we will soon contribute to this process,” he said.

Montalban said the workshop was the first step in setting up a participatory process involving all stakeholders in the new initiative.

As part of a week of in-depth consultations, an international team of consultants will pay field visits and meet with key stakeholders, including utility and power companies, developers and investors, and international donors.

The consultations will aim to ensure that the net-metering policy meets the needs of the national energy sector from a regulatory and technical point of view.

The policy will help ensure that Vietnam meets its goal to generate 12 GW of solar by 2030, according to a EUEI PDF report.

The EUEI PDF will work to help the EARV develop in detail the net-metering scheme, drafting the decision and identifying existing legislation and policies that need to be brought in line, the report says.

"A thorough validation of the technical capacities and the potential impacts of solar energy on the Vietnamese electricity grid will also be conducted to ensure its stability and the technical feasibility of an uptake of the solar,” said a EUEI PDF representative.

Finally, he said, the EUEI PDF would also provide training in the new net-metering scheme to policy makers, developers and other key actors to help ensure the successful rollout of the scheme.

Vietnam Airlines completes 2016 business plan

National carrier Vietnam Airlines said it had achieved the business target set by its shareholder last year.

However, the carrier said that with the budget carriers continuously expanding their operations on both international and national routes, the competition had intensified.

In the domestic market, the firm supply was up 32 percent in 2016 compared with 2015, but the purchasing power increased only 14 percent, bringing down the average revenue of all airlines by 12 percent.

Meanwhile, the budget airlines expanded their operation to other regions, including Southeast Asia and Northeast Asia, marking a 14 percent rise in the market share from 8 percent in 2015.

Vietnam Airlines said the overload at airports, especially at Tan Son Nhat International Airport in HCM City, had resulted in an increase of 1,392 flying hours, incurring an additional cost of 188 billion VND to the airline.

The firm predicted high growth in the aviation market this year with 23.6 million international visitors and 31.6 million domestic visitors, a 14.7 percent and 12.1 percent increase, respectively, when compared with last year.

However, Vietnam Airlines said there would be a lot of challenges, especially in the plan of repairing Noi Bai and Tan Son Nhat international airports, which may reduce their capacity to 70 percent. Noi Bai Airport will reduce from 35 flights per hour to 22-24 flights; meanwhile Tan Son Nhat Airport will scale down from 40- 42 flights per hour to 28-30 flights. Therefore, airlines will have to restrict 15 percent of the total flights arriving and landing in the airport in the day.

According to the business report of Vietnam Airlines, the corporation operated 138,764 flights last year, up 6.4 percent compared with the target for the year.

The 2016 aviation market’s growth rate was 25.7 percent higher than that of 2015, in which international market increased by 17 percent, while the domestic market rose 33 percent.

Hai Duong province calls for investment in agriculture

The Red River Delta province of Hai Duong will create favourable conditions for businesses to invest in agriculture, especially in high-tech agriculture, post-harvest preservation, slaughterhouse construction and production chain development, local officials have said.

Targeting a modern agriculture which applies state-of-the-art technologies and creates high-quality and competitive products, the province has offered a line-up of preferential policies for investors.

Support in terms of credits, land rental, infrastructure development and administrative procedures is among the province’s preferences for investors, said Secretary of the provincial Party Committee Nguyen Manh Hien.

At an agricultural investment promotion conference held in Hai Duong on June 18, Minister of Agriculture and Rural Development Nguyen Xuan Cuong suggested that the province should pay due attention to providing training and encouraging farmers to connect with others to form agricultural businesses.

Identifying strategic products and outlining transparent and favourable policies for investors will help the local agriculture sector to move up on the ladder to a new development stage, Cuong stressed. 

The province is housing over 11,700 enterprises, however, only 1,600 of which are investing in agriculture. Total investment in local agriculture is valued at more than 15 trillion VND (658.5 million USD), focusing on farm produce processing, animal foodstuff and production linkages.

EVN coal cuts worry Vinacomin

The country’s sole energy producer Electricity of Vietnam (EVN) has proposed reducing its coal consumption for its thermo-power plants this year, which has raised concerns with coal producer Vinacomin about the possibility of major job losses.

Under the proposal, EVN plans to cut coal consumption by 2 million tonnes to 17.92 million tonnes from 19.92 million tonnes this year.  

Vinacomin Chairman Le Minh Chuan said that by late June this year, the group’s coal inventory reached 9.3 million tonnes, higher than planned. 

Meanwhile, Prime Minister Nguyen Xuan Phuc instructed Vinacomin to raise productivity by 2 million tonnes in 2017 to contribute to the country’s GDP growth of 6.7% in the year.

If EVN cuts its coal purchases by 2 million tonnes from Vinacomin, around 4,000 Vinacomin miners will face the risk of losing their jobs or one coal mine could be closed, Chuan added.

He has asked the government to instruct EVN and PetroVietnam not to reduce their coal purchase from Vinacomin this year so that the group can stabilise its production activities and contribute to the country’s GDP growth target. From next year, Vinacomin will have a specific plan for its coal consumption if EVN and PetroVietnam slash their coal purchase.

According to Chuan, Vinacomin has signed contracts with many partners to hire mining machinery and equipment, so EVN’s move would cause great losses. He suggested priority should be given to domestically-produced coal.

Deputy Minister of Finance Do Hoang Anh Tuan agreed with Chuan’s recommendation about the priority for the domestically-produced coal consumption. He, however, said that domestically-produced coal prices must be equal to or cheaper than imported coal prices.

In reality, Vietnam’s coal prices are higher by VND1.5 (USD68)-2 million per tonne compared to imported coal, so it is quite difficult for domestic coal firms to compete with imported coal.

Minister-Chairman of the Government Office Mai Tien Dung urged the Ministry of Industry and Trade to seek ways to reduce production costs for cheaper coal prices and boost the equitisation of Vinacomin affiliates. The ministry also needs to take measures to deal with Vinacomin’s coal inventory and work on the case of EVN’s proposal to cut coal purchases from Vinacomin.

Resolution on approving the State budget balance in 2015 adopted

National Assembly (NA) deputies on June 19 passed a Resolution on approving the State budget balance in 2015 and the amended Law on Technology Transfer and the amended Law on Tourism.

With 92.46% of approval, the NA approved the Resolution on approving the State budget balance in 2015.

The total State budget revenue and spending were estimated at VND1,291,342 billion and VND1,502,189 billion, leading to overspending of VND263,135 billion, equal to 6.28% of the total GDP.

The compensation for the State budget overspending included the domestic loan of VND195,900 billion and the foreign loan of VND67,235 billion.

The same day, the NA deputies ratified a Resolution on separating compensation, support and resettlement contents into a component project to realize the Long Thanh International Airport project with 82.08% of approval.

Accordingly, the total recovered land includes: the land area of the Long Thanh International Airport Project (5,000 ha), the area for construction of resettlement areas, cemetery areas and the area serving for resettlement projects.

The recovery of land must ensure social security and safety and stabilize lives and production for local people affected by the project.

Stubborn investor ignores fines over construction violations

Authorities in HCM City has issued a fine of VND1bn (USD44,000) and ordered to halt the construction of the Holm Residence project for various violations to no avail.   

According to the authorities of Thao Dien Ward, District 2, in March, their officials and the district inspectorates had carried out an inspection at Holm Residence project and discovered several violations. The TDS Company increased the total area of their ground floor than the registered one by 1,127 square metres. They also built new construction that is not included in the registered planning.

The team made a record and asked the developer TDS Company to stop the illegal construction but the order was not obeyed. On April 11, the TDS Company was fined VND40m. The TDS continue to be fined VND1bn as it ignored the fine and resumed illegal constructions.

Le Van Khoa, vice chairman of HCM City People's Committee, ordered to halt the project until the TDS Company fixes their violations.

However, Nguyen Ngoc Tuan, chairman of Thao Dien Ward, said the investor kept ignoring the order. The local authorities had to assign officials to guard the sites to prevent further construction activities.

As of now, the villas at Holm Residence project are still being offered to the market at the prices of VND45bn (USD1.9m) to VND100bn. Meanwhile, statistics from the Department of Natural Resources and Environment show that the project has been used as collateral for bank loans in 2015.

There are opinions that the fines are too small. Violations are detected at 11 out of 29 villas and if each villa has a price ranging from VND45bn to VND100bn, then the VND1bn is nothing.

Vo Van Hoan, head of the Office of the HCM City People's Committee, said the fines were right and TDS Company must obey. "If the company fails to comply with the order, local authorities can carry out another inspection to discover new punishments," he said.

VNA/VNS/VOV/SGT/SGGP/TT/TN/Dantri/VNEVET