Labour market difficulties anticipated for new workforce

Adecco Vietnam has warned the workforce’s newest members should expect difficulties when joining the labour market in 2014.

At a HCM City 2013–2014 Vietnamese labour market overview on January 9, Adecco Vietnam General Director Nicola Connolly said global trends will exacerbate perennial labour market problems such as high unemployment rates, structural shifts in production, and skill shortages.

Adecco Vietnam identified 2014’s five hot industrial sectors as automobiles, health, consumer goods, information technology, and insurance.

Employment opportunities will proliferate in sales, accounting and finance, human resources, administration, marketing, and customer service.

Connolly emphasised the Vietnamese labour market has always welcomed highly qualified and adaptable employees.

Connolly said Vietnam’s gross domestic product increased 28% in 2013 while maintaining a low 2.37% unemployment rate.

The Vietnamese labour market’s recent development has been fuelled by growth in key sectors such as health, energy, retail/consumption, and education.

In 2013, recruitment demand was most evident in sales, finance, administration, information technology, and marketing and public relations.

Adecco Vietnam said employers are increasingly only interested in recruiting highly skilled and experienced workers.

Influxes of new graduates are therefore facing higher rates of unemployment.

Industrial production up 5.9% annually

Vietnam’s industrial production growth rose 5.9% in 2013, picking up from the 5.8% rate in 2012 official data show.

The Ministry of Industry and Trade (MoIT) announced the figure on January 10 at a conference held in Hanoi to devise tasks for 2014.

Inventory stockpiling in the processing and manufacturing industries also show improvement as its rate has dipped from 21.5% in January 2013 to 10.2% in December 2013, according to the MoIT.

The total retail goods and services turnover in December rose 12.6% from last year’s same period which indicates the domestic market is expanding and moving in a positive direction.

Additionally, according to the MoIT, the retail sector continues to focus on the promotion of exports and the goal of maintaining a trade surplus.

Total export value in 2013 rose 15.4% compared to a year earlier to US$132.17 billion-higher than the National Assembly’s target-while total imports increased 15.4% to US$131.3 billion.

Export growth and import growth rates remained steady in 2013 and Vietnam’s annual trade surplus was a much improved US$863 million on the back of growth in the processing industry.

Export restructuring in response to industrialisation and the 2011–2020 import-export development strategy with a vision for 2030 was also a key component positively affecting the improved trade surplus.

2013 was considered a successful year of Vietnam’s international integration. The MoIT and other ministries actively participated in important international events such as negotiating free trade agreements and working to strengthen cooperation in ASEAN, APEC, WTO and other international organisations.

 Progress was also seen in administrative reform, organisational apparatus, anti-corruption and thrift practice, and anti wastefulness.

The MoIT set its goals to fulfill tasks for the 2014-2015 period, such as keeping supply and demand in balance of essential goods for the national economy in all circumstances, effectively implementing market stabilisation plans and programs, especially during holidays and Lunar New Year (Tet) and control prices according to market mechanism under State regulation on electricity, coal, petroleum and public services.

It will strive to promote sustainable export growth, which is considered the driving force for economic growth, and work to raise the proportion of processing and hi-tech products, control the trade deficit, and limit imports of non-essential consumer goods.

Laos Deputy PM works with SBV

A high ranking Lao delegation led by its Deputy Prime Minister Somsavad Lengsavath held a working session with the State Bank of Vietnam (SBV) in Hanoi on January 9.

A high ranking Lao delegation led by its Deputy Prime Minister Somsavad Lengsavath held a working session with the State Bank of Vietnam (SBV) in Hanoi on January 9.

SBV Governor Nguyen Van Binh briefed his guest on its responsibilities for oversight of banking activities and implementation of monetary policy in Vietnam.

He explained a variety of tools and policies the SBV utilises to obtain the targets it sets to maintain macroeconomic, financial and monetary stability.

He pointed out key monetary policy targets for 2014 that, if attained, will provide the Vietnamese economy much needed support for sustainable economic growth while containing inflation and stabilising the macro economy to ensure social welfare.

Binh emphasised that stabilising the foreign exchange rates and foreign currency market requires a comprehensively coordinated approach that factors exchange rate policy, foreign currency management and monetary policy mindful of the need to prevent dollarization and goldenisation.

In addition, strict controls should be imposed on monetary, fiscal and trade policies, he said.

For his part, Deputy PM Somsavad emphasised that experiences in overcoming economic difficulties to ensure sustainable economic development especially in recent years are helpful to Laos’ socio-economic development.

He said he hopes that Vietnam will continue to share economic management expertise with his nation and help it fine-tune institutions.

HCM City aims to reduce tax arrears to 5% in 2014

The Ho Chi Minh City Tax Department aims to reduce the tax arrears to 5% of the total budget revenues by the end of this year, Director of HCM City Tax Department Nguyen Dinh Tan stated at a 2014 tax task conference held in the city on January 9.

To obtain the target, the department will design firmer measures to reduce tax arrears, thoroughly examining all tax debt cases and dividing them into different types of tax debt.

According to Finance Deputy Minister Do Hoan Tuan Anh, extending the time to pay tax dues and income tax reduction for businesses are quite necessary policies under the current circumstances.

He also urged the tax department to enhance its inspection work to better detect tax violation cases.

A report from the HCM City Tax Department showed that the city contributed VND 167.65 trillion to the state budget in 2013, or 106.93% of year’s plan and up 11.83% against the previous year.

However, the city posted tax arrears of VND17.3 trillion last year, of which the recoverable debts were over 13 trillion VND; debts claimed to be adjusted valued were VND1.2 trillion; and bad debts were VND143 billion .

In 2013, the tax department inspected 54,000 businesses with tax violation signs and collected VND13 trillion from them.

The department also worked with other 230 businesses on their exaggerated losses and collected VND2.3 trillion of tax.

More than 14,000 Vietnamese labourers who were preparing to work in the Republic of Korea were negatively affected by its temporary stoppage of recruiting guest workers in 2012, according to the Employment Permit System (EPS).

The RoK’s rational for the stoppage resulted from the high level of noncompliance with its laws and regulations governing guest workers and a large number of illegal Vietnamese guest workers in the RoK.

Since the stoppage the Vietnam government has implemented a series of policies to address the problem and minimise illegal guest workers and revive the export labour market.

In acknowledgement of the Vietnamese Government’s effort, on December 31 2013, a special memorandum of understanding on sending and receiving workers under the EPS was signed between the Vietnamese Ministry of Labour, Invalids and Social Affairs (MoLISA) and the RoK’s Ministry of Labour and Employment.

According to the MoU, there are three classifications of workers who are allowed to work in the RoK, which include those who passed the Korean language examinations in December of 2011 and May and August of 2012, those in poor districts who registered to participate in the Korean language examinations in August 2012 and will work in agriculture in the RoK and former guest workers who returned home on schedule.

Because it has been a long time since the RoK stopped recruiting Vietnamese guest workers, the MoLISA plans to authorise the Overseas Labour Centre (OLC) to open courses on the Korean language to improve the language proficiency for workers who pay their tuition fees.

Nguyen Ngoc Quynh, Head of the Department for Overseas Labour Management (DOLM), says that his department will pay the tuition fees for more than 2,700 workers in poor districts who have registered to take part in the Korean language examinations and work in agriculture.

OLC Director Phan Van Minh says there have been no difficulties with the security deposit policy which requires payment of a VND100 million deposit prior to leaving for work in the RoK.

Four flights carrying Vietnamese guest workers to the RoK have been conducted to date and four more are scheduled for January, 2014.

Minh adds that these labourers had been working in the country so the deposit is not too onerous for them. But, it is quite hard for those who will go to the RoK for the first time and those from disadvantaged areas.

The MoLISA will work with the Bank for Social Policies to help workers obtain loans, Minh says.

Soon after signing the MoU, guidance on how to complete the profiles was sent to localities. Deadline for applications is January 17 and all worker profiles must be completed before the Lunar New Year (Tet) holiday to give to Korean employers adequate time to process them.

The Korean labour market’s closed door policy for Vietnamese guest workers resulted in significant pressure on labour exports. The MoU offers opportunities for thousands of Vietnamese labourers but more challenges remain.

Minh says the MoU provides for all workers who pass the Korean language examination to be permitted to work in the RoK for one year.

After eleven months from the MoU signing date the two sides will review the results of the programme and consider an option to extend the programme for an additional two years. This places yet another new pressure on Vietnam.

Minh notes that it is not easy to reduce the number of workers who ran away, especially in the context that the quota for guest workers in 2014 is only 5,600, down 50% from 2013’s 11,000.

This affects workers whose work permits are ending and want to return home and then go back to the RoK to work, he says.

In late 2013, the RoK announced its plan to recruit 53,000 workers from 15 countries in 2014, 3,000 higher than in 2013. Quotas for each country will be released in January 2014 and nearly 14,000 Vietnamese workers are eagerly awaiting the announcement.

The RoK is a high-income labour market (around US$1,200-2,000 per month) and receives more than 10,000 Vietnamese workers per year. To support the market to create jobs for thousands of workers, 20 seminars and 6 campaigns have been held  to encourage Vietnamese workers to return home on schedule thus helping minimize illegal workers.

Quynh emphasises fines for workers who do not return home vary from VND3 million to VND100 million. The security deposit of VND100 million is set at a high level to ensure compliance with the return home regulations and policy.

With new regulations and policies, it is hoped that more than 10,000 workers will be sent to the RoK and create a new image that reflects more positively on Vietnam and Vietnamese workers.

Vietnam will resume sending workers to the RoK market in August 2014.

More than 71,000 workers have been sent to the RoK so far, resulting in high economic efficiency for their families and themselves.

Vietnam leads among 15 countries in the number of workers recruited by Korean employers, accounting for more than 25% of total workers in the RoK according to the ESP program.

Cement consumption to hit 63 million tonnes

The Construction Ministry predicts that Vietnam’s total consumption of cement will see a year-on-year increase of 3% and reach 63 million tonnes in 2014.

Of the figure, domestic consumption is likely to hit 48.5-49 million tonnes, while the remaining 13.5-14 million tonnes will be exported.

The Construction Ministry has announced its goals to conduct improved surveys and provide quality forecasts to enhance Vietnam’s monitoring of supply and demand in 2014.

It also aims to closely monitor the implementation of cement projects in the 2012- 2015 period and work with the Vietnam Cement Association to increase its operational efficiency.

In 2013, local cement plants produced 70 million tonnes, and about 61 million tonnes were consumed, exceeding the yearly set target and rising 13.9% year on year.

Approximately 47 million tonnes was sold in the domestic market, and around 14 million tonnes were exported.

Central city deploys $5m stimulus

Da Nang has debuted the Credit Guarantee Fund to provide financial assistance to businesses facing bankruptcy.

The fund will reach VND100 billion (US$4.8 million), of which VND30 billion ($1.43 million) will come from the city's budget and 70 per cent from banks and large firms.

Vice chairman and general secretary of the city's Small-and Medium-sized Enterprises Association (SMEs), Nguyen Van Ly, confirmed the creation of the fund to Viet Nam News during a year-end meeting.

The decision, which was announced on the last day of the year, is to provide urgent action to revive poorly running businesses.

Over 1,200 enterprises – 10 per cent of total businesses in Da Nang – were dissolved or closed due to poor operations and deficient loans last year.

Officials note that SMEs contribute over 60 per cent of the city's GDP annually.

"It's an initial support from the city and the association to help businesses that have insufficient funding over the past years. However, the fund is not able to save all enterprises from bankruptcy," Ly said.

"We plan to offer loans at 9 per cent interest for a maximum VND3 billion ($143,000) loan, with strict examinations as of 2014," he explained.

He added that 50 per cent of the enterprises are trading and manufacturing companies with registered capital from VND500 ($24,000) million to VND1 billion ($48,000).

Ly also complained that many businesses have received loans with interest rates of 9 and 13 per cent.

Nguyen Thi Thien Kim, manager of a steel company, said her company was one of several businesses that received 9 per cent and 13 per cent loans from banks last year.

"It's a challenge. Businesses have to work with strict regulations set by banks if they want access to preferential interest rate loans," Kim said.

"Of course, profitable companies would receive low interest loans, but its is blocked to small sized enterprises that had previous debts," she said.

In a city's people's council meeting last year, director of the State Bank's Da Nang branch, Vo Minh, said most banks in Da Nang are branches, so they had to ask permission from their headquarters to grant loans with values of VND2 billion ($95,000).

Minh noted that credit balances at banks operated under different regulations last year.

"Fund mobilisation grew 12.3 per cent last year, but loans being distributed were only at 1.25 per cent. Strict regulations on loans were given to control bad debts and risks, but it tightened the growth of credit, as well," Minh said.

According to SMEs' vice chairman Ly, the city will create a strategy to renew investments in the city by designating this year as the Year of Enterprises.

"We propose the city extend debts and grant businesses priorities on land prices and taxes to produce lower-priced products and reduce inventories," he said.

He emphasized that speculation in the real estate sector, which has stagnated for years, resulted in bankruptcy for businesses in the city.

According to the vice chairman of the city's Property Association, Vo Van Cuong, sales of real estate in Da Nang last year saw a decline of 80 per cent, with an estimated 12,000 plots of land from 26 projects being available.

In the latest report, the city said received nearly VND1.9 trillion ($90 million) from land-use taxes – just 4.5 per cent of the city's budget of VND8.6 trillion ($409 million) last year.

African execs eye Viet Nam prospects

A delegation of 20 business executives from the Monetary Community of Central Africa and West African Economic and Monetary Union met Vietnamese counterparts from the agricultural processing sector at a forum held in HCM City yesterday.

Trade and investment relations between Viet Nam and UEMOA and CEMAC steadily increased, Hoang Duc Nhuan, head of the Ministry of Industry and Trade's Africa Market Office, said.

Rice is Viet Nam's main export staple to the two groupings, he said.

Rice exports to UEMOA members were worth US$330 million in 2011, accounting for 80 per cent of all exports.

It was followed by textiles and garments at $12.3 million.

Viet Nam's imports from UEMOA were mainly cashew and cotton, and they were respectively worth $226.8 million and $90 million in 2011.

Rice exports to CEMAC were worth $60.3 million and accounted for more than half of all exports.

It was followed by textile and garment at $53.3 million.

Imports from CEMAC, mainly of wood, cotton, and scrap iron, were worth $130 million.

Africa with a population of 1 billion is a promising market for Viet Nam's agriculture produce since Vietnamese prices are acceptable in Africa, Nguyen Ngoc Thang, deputy head of the Viet Nam Chamber of Commerce and Industry's Foreign Relations Department, said.

Trade between Viet Nam and African countries topped $5 billion last year, he said, up from $3.6 billion in 2012.

The forum was held under the auspices of the Viet Nam-Africa-Middle East Business Forum, which promotes commercial and economic relations.

It was organised by the Viet Nam Chamber of Commerce and Industry, the International Organisation of La Francophonie, and the International Trade Centre.

Banks to face uncertain growth in lending

Competition among banks to lend is likely tougher as the State Bank of Viet Nam expects a 12-14 per cent growth in credit this year.

Credit by banks expanded 11 per cent last year, below the 12 per cent target set for the year, despite concerted efforts by commercial banks and the central bank to boost lending.

Last month, the central bank announced that it would resolve policy-related and procedural issues to facilitate credit expansion and ensure the sector's financial health.

However, banks believe hitting the target is not that easy.

Sacombank's General Director Phan Huy Khang told the Investment newspaper that attracting borrowers is becoming more difficult because enterprises have no plans of expansion in the currently dull market environment.

In principle, banks are allowed to use no more than 30 per cent of their short-term deposits for funding medium-term loans. However, as almost all the deposits are short-term in nature, the rule prevents banks from increasing their lending, Khang argued.

Banks, such as the NamA Bank, Mekong Bank and SCB, will give priority to low-risk borrowers, including individuals, retail traders, households, small and medium enterprises, and borrowers from rural and agricultural businesses.

With the addition of new clients becoming challenging, several banks are attempting to retain existing clients by offering lower interest rates and restructuring short-term loans into medium – or long-term loans.

Governor Nguyen Van Binh said HCM City would be able to achieve the credit growth target of 14 per cent as there are several programmes that strengthen the cooperation between banks and enterprises. In addition, social housing loans and business investments are also showing positive signs.

According to the HCM City People's Committee, to achieve the 14 per cent credit growth target, the city will work with the central bank to implement monetary, credit and interest rate policies in such a manner that these policies ensure the stability of the financial markets and local banks.

City leaders have also proposed that the central bank reduce the interest rate of loans given to the priority sectors. This would encourage eligible enterprises to continue investing and improving their competitive capabilities.

In regard to social housing loans, the People's Committee suggested that the central bank should co-ordinate with the various ministries and branches to improve the legal framework for administrative procedures and mortgage transactions. That would also give banks collateral for loans.

According to the central bank's report on operations in 2013, the total loans of banks in HCM City were estimated at VND952.55 trillion (US$45.14 billion), representing an increase of 9 per cent compared with late 2012, People's Committee vice chairwoman Nguyen Thi Hong said.

Lixil Vietnam opens Dong Nai factory

Lixil Global Manufacturing Vietnam, a company under Japan's Lixil group, inaugurated its factory in the Long Duc industrial zone in the southern province of Dong Nai on Wednesday.

The factory, constructed on an area of 55ha at a total investment of US$440 million, will produce aluminium and PVC windows and doors for houses, offices, as well as civil and industrial projects.

It is the biggest investment project of the Lixil Group in Viet Nam, as well as by Japan in Dong Nai Province. The inauguration marks the end of 20 months of construction. Going forward, the factory will provide jobs for about 2,000 local workers.

Dinh Quoc Thai, chairman of the provincial People's Committee, told Vietnamplus newspaper that the number of Japanese investors seeking official approval to conduct business in Dong Nai had been increasing in recent years.

In 2013 alone, he revealed, Japanese investors accounted for 30 per cent of the $1.6 billion in foreign direct investment in the province.

Thai pointed out that the committee is always willing to support companies and create the best operating conditions for companies to carry out their production and other business activities effectively.

The Lixil group of Japan specialises in manufacturing products for the construction industry. Currently, it offers kitchen and bathroom fixtures, such as toilets and bathtubs, under the brand ‘INAX' in Viet Nam.

Co.op Mart parent to open first mall

Saigon Co.op is set to launch its first ever mall with a supermarket, food court, entertainment areas with games, bowling, and cinemas, and fashion and cosmetic stores.

The 22,000sq.m mall, called Sense City, is more than VND200 billion (US$9.47 million) large. The project will open in Ninh Kieu District of the Cuu Long (Mekong) Delta city of Can Tho on January 20. Sense City outlets would open in Ben Tre Province this year and Ca Mau next year. Saigon Co.op runs the popular Co.opmart supermarket and Co.op Food chains.

TPBank profit higher than expected

The Tien Phong Joint Stock Commercial Bank (TPBank) generated VND362 billion (US$17.24 million) in pre-tax profit in 2013, which is 15 per cent higher than the target set for the year.

Deposits from the public grew 160 per cent, while lending expanded 190 per cent year-on-year, the bank said. Bad debts accounted for less than 2 per cent of the total outstanding loans.

The results were better than expected. At the start of 2013, the plan was to raise deposits to VND19 trillion (up 105 per cent from the previous year), increase lending to VND13.5 trillion (up 122 per cent) and limit the bad debt ratio to below 3.5 per cent.

Rattan exports hit $225m in 2013

The exports of the rattan industry climbed to nearly $225 million last year, according to statistics from the Ministry of Industry and Trade.

The ministry said that Viet Nam's rattan products were exported to over 120 countries and territories.

The United States ranks as the top export destination, accounting for over 19 per cent of Viet Nam's rattan exports, while Japan is the second-largest market, with a 17 per cent share.

Nevertheless, Viet Nam's rattan industry exports account for less than 3 per cent of the global rattan market.

Economic growth still depends on capital, resources

Vietnam will continue to rely on capital and natural resources in order to achieve an economic growth rate of 5.8 percent in 2014 and 6 - 6.2 percent in the following year, Minister of Planning and Investment Bui Quang Vinh has said.

According to the minister, among the factors affecting national GDP growth, capital accounts for 57.5 percent; labour, 25.5 percent; and productivity, 16.25 percent.

Despite recording a GDP growth rate of 5.4 percent this year, Vietnam still faces a lot of difficulties as two driving forces behind the growth, raw materials and public investment, are running dry, he said.

He noted that in the middle and long-term, the local economy cannot grow in that way because natural resources like oil and gas, coal and iron ore will be exhausted.

“To reach the GDP growth targets for 2014 and subsequent years, we should implement synchronous measures to increase foreign direct investment (FDI) attraction, improve business productivity and efficiency, and complete legal frameworks,” said Vinh.

The minister laid special emphasis on institutional reforms, especially creating a legal framework for the private sector to get involved in infrastructure building, economic development and public services.

Vietnam is building a series of legal documents and institutions aimed at mobilising human and material resources of all domestic and foreign economic sectors for its development, he said.

The country also needs to accelerate the restructuring of its economy, only when it has enough resources can sustainable growth be achieved, he added.

According to Vinh, over the past three years, despite the economic recession, Vietnam has succeeded in attracting FDI with increases in not only the number of projects but also in the level of investment capital. Many FDI businesses have seen successful operations in the country.

These enterprises have made important contributions to Vietnam’s economic growth and increased its export value, he said.

Noting that FDI enterprises face fewer difficulties in capital access and operation efficiency than those confronted by local businesses, the minister said Vietnam need basic and effective solutions to remove obstacles and help domestic firms so that they are able to achieve the same successes.

He mentioned a possible measure which is speeding up the process of buying up bad debts of firms having clear and feasible development plans so that they can access low interest loans to maintain operation,” he said.

In addition, a transparent legal framework will allow businesses to have fair access to resources.

At the same time, the minister stressed the need for domestic enterprises to increase productivity and apply scientific and technological advances in their operation.

“Science and technology will be the decisive factor for enterprises’ competitiveness,” minister Vinh said.

In his opinion, the State should encourage the private sector to engage in the economy, including providing public services, investing in production and generating jobs for local labourers, while speeding up the equitisation of State-owned enterprises ( SOE s).

According to approved plans, by 2015, Vietnam will equitise many State-owned corporations and economic groups and keep only eight groups. The State will create a new legal framework for the equitised companies to gain fair access to resources.

“These institutional reforms are essential to the Vietnamese economy not only for the 2014-2015 period but also in the middle and long-term. Only by this way, will the local economy develop in a strong and sustainable manner,” minister Vinh concluded.-

Thai Nguyen - FDI most attractive province in 2013

Northern Thai Nguyen province led localities in FDI attraction in 2013, bringing in about 3.3 billion USD, making up 16.1 percent of the country’s total figure of 21.6 billion USD.

Apart from successfully attracting the largest FDI amount last year, Thai Nguyen is also proud of Samsung Group’s three investment projects.

Duong Ngoc Long, Chairman of the provincial People’s Committee, told the Vietnam Economic News that Samsung’s investment in Thai Nguyen is an important economic factor which will largely contribute to the province’s socio-economic development and create the premise for FDI projects to come in the future.

“To succeed in attracting FDI, Thai Nguyen started improving investment environment with eight major solutions related to laws and policies, planning, infrastructure, human resources, site clearance, administrative reform, investment promotion, and environmental pollution,” Long said.

Thanks to the implementation of a series of Provincial Competitiveness Index (PCI) improvement measures, Thai Nguyen has improved the investment environment remarkably, climbing from 57th among the 63 provinces and cities across the country in PCI terms in 2011 to 44th in 2012 and 17th in 2013.

To promote the achievements, Thai Nguyen will this year continue to focus on attracting FDI into industry, especially the hi-tech and support industries, to create a breakthrough in provincial industrial restructuring.-

Vietnamese seafood exporters grasp golden opportunities

The Vietnamese fisheries sector has grasped opportunities arising from the current trend of global integration, placing the country fifth in the world rankings in terms of seafood production and export after a record 6.8 billion USD worth of total shipments were made last year.

In a recent interview granted to Vietnam News Agency, Deputy General Secretary of the Vietnam Association of Seafood Exporters and Processors (VASEP) Nguyen Hoai Nam said shrimps for overseas delivery recorded a growth of nearly 40 percent while others saw stagnancy or even decline.

This was partly due strong global demand while supplies declined due to widespread epidemics in farming areas abroad - including those in Vietnam .

Responding to figures that show 96 percent of exports to China are raw materials, resulting in an unstable supply at home, Nam said VASEP reported this to the Ministry of Agriculture and Rural Development and the Ministry of Industry and Trade, while taking action to promote exports of value-added products as China remains a major market.

Asked about how the upcoming Trans-Pacific Partnership will influence the sector, Nam said it is a win-win deal. More specifically, the tariff will slump to zero percent while the global demand remains high, making it easier for exporters to gain strong footholds in TPP member countries, particularly Japan and the US.

However, to get a competitive edge over their rivals in this playing field, Vietnamese firms must improve their product quality and output, he added.

Discussing opportunities offered by the free trade agreement between Vietnam and Europe , the VASEP official said with an average tariff of 7-10 percent, seafood is now among five hard-currency generators for Vietnam in Europe with over 1 billion USD in annual turnover.

As Europe lists quality as the top criteria, Vietnam should focus on this issue in order to maximise the opportunities, Nam said, adding that after joining the World Trade Organisation, Vietnam has issued the Law on Food Safety & Hygiene and a range of regulations to ensure that its seafood processors are qualified to supply goods to this market.

Vietnam is shipping aquatic products to over 150 markets. Besides traditional partners such as the US , Japan and Europe , China and India have emerged as potential importers of Vietnam ’s aquatic products, according to the VASEP Deputy General Secretary.

He said other promising markets in South America, the Middle East and Islamic nations will come under the association’s radar in the coming time.-

HCM city: ground segment sees increasing demand

Ho Chi Minh City’s real estate market saw a strong increase in the number of transactions in the ground segment in the fourth quarter of last year, up 228 percent and 43 percent against the previous quarter and the same period of 2012, respectively.

According to a survey on the property market conducted by Savills Vietnam Real Estate Company , the lower price and flexible use of the segment are the main factors behind the demand surge of buyers and investors.

In 2013, more than 800 ground areas were on offer in the city, 11 percent higher than 2012, while only 120 villas sold to the market, decreasing by 18 percent compared to the previous year.

In the segment, three new projects have been introduced to customers, supplying more than 430 ground areas, raising the total number of areas on offer to 1,200 – an increase of 93 percent compared to the previous quarter.

According to Savills Vietnam, Phu My Hung New Urban Area predominated over others in the segment. The prestige of the investor and the ideal living environment helped the area attract customers.

Vietnamese rice to face tough competition in 2014

The Vietnam Food Association (VFA) has forecasted Vietnamese rice will face tough competition from Thailand and other rice-exporting Asian nations in 2014.

At a January 9 meeting in HCM City that discussed rice export plans for 2014, VFA representatives highlighted formidable rivalry from Thai fragrant and white rice and Indian basmati and broken rice.

The VFA believes quality Vietnamese fragrant and white rice enjoys competitive advantages in Chinese, African, and Southeast Asian markets.

Southeast Asia’s rice import demands have stagnated or even slumped, but China’s hunger for Vietnamese rice shows no sign of diminishing.

The VFA was careful to acknowledge the Chinese market’s inherent risks and comparatively low prices. It promised to devote resources to consolidating shares in traditional markets and expanding promotional efforts in emerging markets.

Business representatives also urged the Ministry of Industry and Trade (MoIT) and relevant agencies to encourage cross-border exports.

The Ministry of Agriculture and Rural Development (MARD) and the MOIT should devise an overarching rice sector strategy that includes strict chemical residue monitoring for intended US, EU, Japanese, and South Korean exports.

Vietnam is expected to export around 1.2 million tons of rice in the first quarter of 2014.

Bright prospects for Vietnam-Africa cooperation

Two-way trade turnover between Vietnam and Africa grew to an annual US$5 billion over the 2000–2013 period.

A HCM City south-south farm produce cooperation forum was told on January 9.

Participants noted that Vietnam has also signed cooperative trade agreements with 25 out of 55 African nations and is looking to make new diplomatic breakthroughs in the near future.

The forum offered businesses an opportunity to share experience and explore possible partnerships in importing and exporting rice, cashew nuts, construction materials, canned and dried fruits, and agricultural processing machinery and equipment.

Africa’s more than one billion consumers makes it a market rich in potential, especially considering the prices of Vietnamese goods broadly accord with local living standards.

Vietnamese-African trade exchange has previously encountered the hindrances of geographical distance, transportation expenses, and bureaucratic formalities complicating payments.

Many forum participants said administrative and financial red tape must be streamlined to allow Vietnamese businesses to invest in African markets.

Nguyen Ngoc Thang, Deputy Head of the Vietnam Chamber of Commerce and Industry’s (VCCI) International Relations Department, said state agencies will support Vietnamese enterprises’ African ambitions.

He said increased trade with Africa is also part of State strategy. The diplomatic and trade agreements already negotiated testify to VCCI’s  past efforts.

The forum formed part of the 2014 Vietnam-Africa Business Forum 2014, an initiative aimed at facilitating cooperative relations between Vietnamese businesses and central and western African partners.

HCM City pledges sufficient Tet goods for residents

HCM City plans to develop nearly 400 more kiosks and convenience stores under the price stabilization program to meet local residents’ demand during the upcoming lunar New Year (Tet) festival.

It has encouraged women and youth unions and businesses to set up more than 200 mobile kiosks to provide essential goods for rural people, employees at industrial parks, low income earners and hospital patients.

The city has stockpiled Tet goods valued at nearly VND7,500 billion for the price stabilization programme. As many as 7,500 mobile kiosks and convenience stores have offered lower prices than market levels at residential areas and traditional markets.

The Municipal Department of Industry and Trade has assigned the Saigon Union of Trading Cooperatives (Saigon Co.op), Saigon Trading Group (Satra), and Ba Huan company to work closely with local businesses to carry out the programme at the peak of the Tet holiday from January 1 to 25, 2014.

The city will closely monitor market prices and trade frauds to nip any violations in the bud.

TPP to bring new opportunities to Vietnam: Seminar

The advantages Vietnam will enjoy once the Trans-Pacific Strategic Economic Partnership Agreement (TPP) become effective were discussed in detail at a seminar held in Hanoi on January 8.

The event was jointly organized by the Vietnam Peace and Development Fund and the Vietnam Economics Times.

Economic experts and researchers said that the TPP is a great opportunity for Vietnam and the country’s participation in the pact fits the Party and State’s strategy for promoting international integration and restructuring the economy.

The pact, with the participation of many countries, aims to set up a general free trade framework for countries in the Asia Pacific.

The agreement’s negotiated content is wide-reaching, covering issues related to goods and service exchange, technical barriers, intellectual property rights, environmental policies, working regulations and anti-corruption measures.

When the agreement comes into force, its members will get a preferential export tax rate and their export activities will meet with fewer obstacles.

Vietnam can take advantage of the agreement’s regulation on tax duties to increase the export of clothes, footwear and other strong commodities to large markets, especially the US.

Participants also focused on analyzing the impact of the TPP and challenges that will face Vietnamese businesses, thus taking measures and mapping out specific action plans to fully tap the positive aspects and restrict the negative ones.

The latest TPP session came after the World Trade Organization reached an agreement on December 7 on some of the issues under the long-stalled Doha Round of trade liberalization talks in Indonesia.

TPP member countries include Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and the US, in addition to Vietnam.-

Hanoi heeds large-scale centralized agricultural production

Hanoi’s agricultural sector needs to create large-scale centralized production areas so as to improve farmers’ income and reach an annual agricultural growth of two percent.

Vice Chairman of the municipal People’s Committee Nguyen Xuan Viet made the demand at a conference in Hanoi on January 8 reviewing the sector’s performance and setting tasks for 2014.

To this end, the Department of Agriculture and Rural Development plans to renovate agricultural services and enhance the effectiveness of land, labor, technique and material use, bringing the agro-foresty-fishery production value to 230 million VND (10,900 USD) per hectare from the current 212 million VND.

In particular, Hanoi will zone 204,000 hectares of farm land for rice cultivation with an output of 1.2 million tonnes in 2014.

In terms of animal husbandry, the city will increase its livestock to 150,000 cows (including 13,500 milk cows), 1.4 million pigs and 20 million fowls.

Despite difficulties caused by harsh weather, disease and the economic downturn, Hanoi’s agro-forestry-fishery production value in 2013 rose by 1.3 percent from last year to 38 trillion VND (1.8 billion USD).-

Seafood firms eye sale boost through supermarkets

Representatives of local seafood firms have said they are planning to expand their businesses by selling products via supermarket channels.

Nguyen Thi Thu Sac, deputy chairwoman of the Vietnam Association of Seafood Exporters and Processors (VASEP) and the head of the association of enterprises providing seafood for the domestic market, said at present there are 13 local seafood firms that have succeeded in selling their products through the Co.opMart supermarket system in the domestic market.

This year, four more firms will join the system, she said.

Thoi bao Kinh te Vietnam (Vietnam Economic Times) newspaper quoted Co.opMart officials as saying the businesses should offer new and special products to customers to compete with their rivals.

The association for enterprises providing seafood for the domestic market was set up this year to create favorable conditions for local firms in promoting domestic seafood consumption, Sac said, adding it has attracted 30 companies to cooperate in improving the quality and quantity of products.

However, experts of the fisheries industry say Vietnamese customers have hard-to-change habits in buying fresh seafood products, and this makes it difficult to promote frozen and processed ones.

Those frozen products have been mainly sold at supermarkets in large cities and provinces. At traditional fish markets, traders find it difficult to invest in refrigeration equipment and warn that such extra costs would result in increases in the prices of the products.

Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR