Thai and Spanish investors to enliven renewable energy sector

The list of renewable energy projects registered by foreign investors in Vietnam has been lengthened by projects from Thai and Spanish investors.

Siemens Gamesa Renewable Energy (SGRE) from Spain continues to reinforce its presence in Vietnam via developing the second phase of its existing 39 megawatt Dam Nai wind farm, located in the south central province of Ninh Thuan. However, the investment capital of the second phase has yet to be published.

According to the plan, the company will furnish the remaining 12 turbines for commissioning by October this year. Siemens Gamesa will also handle the management and maintenance of the facility for the next ten years.

"We are committed to Vietnam as a market and we want to be our customers' preferred partner in developing wind power projects," highlighted Álvaro Bilbao, CEO of Siemens Gamesa in the Asia-Pacific.

Previously, in April 2017, SGRE, in collaboration with TSV JSC and the Bule Circle Group, started the construction of Dam Nai wind farm–phase 1 with the total investment capital of $15 million. To date, three turbines of phase 1 came into operation with the capacity of 7.8MW.

SGRE expects significant growth in Vietnam in the coming years as the country begins to utilise some of the best wind resources in South East Asia, the target being to install 1GW by 2020.

Gulf Energy Development Public Company Limited, the third largest energy producer in Thailand, will establish a joint venture with a domestic firm to develop a solar farm in Tay Ninh province with 51 per cent stake owned by Gulf.

According to the plan, the project will have the total investment capital of $66 million. The construction is expected to be kicked off in June this year and start to generate power in June 2019 with the capacity of 48MW.

With 2,400 hours of sunshine per year, Tay Ninh is considered an ideal destination for solar farm investors.

Numerous foreign investors have already expressed interest in building solar farms in the province. For example, Mien Trung Energy JSC wants to invest over VND1.3 trillion ($57.2 million) in a 50MW solar power plant on 60 hectares around Dau Tieng Lake in Tan Chau district.

Furthermore, Bien Hoa-Thanh Long One-Member Co., Ltd. plans to build a 30MW solar power plant, worth VND736 billion ($32.38 million) on 37ha in Thanh Long commune, Chau Thanh district.

Pepper prices hit record low in 5 years

Pepper prices dropped by half at the end of the first quarter compared to 2017 and equaled to one-fourth of those in mid-2016, down to the lowest level over the last five years.

According to the Ministry of Agriculture and Rural Development, Vietnam shipped around 24,000 tons of pepper in March with an export value of US$88 million, bringing the country’s total exports in the first quarter to 54,000 tons worth US$203 million. The average export price was US$3,667 per ton, down 42% against the same period last year.

The General Department of Vietnam Customs reported that key export markets were the US, India, Pakistan and the United Arab Emirates, which accounted for 38% of total pepper exports in the first two months.

The average export prices dropped in most markets, of which Egypt witnessed the sharp decline of 55.21% to US$2,727.86 per ton and Spain down 48.91% to US$4,008.52 per ton. Meanwhile, the highest price was seen in the Australian market with US$6,116.68 per tons although the export price decreased by 30.38% against the same period last year.

The same situation was observed in the domestic market. Pepper prices reported at the end of the first quarter fell by 15.7% against those in early this year.  Currently, pepper prices are around VND53,000-55,000 per kilo, the lowest in the last five years.

The decline of pepper prices is attributed to oversupply and overproduction. Despite a slight rebound in March, pepper prices go down again after growers sold it out simultaneously. 

Thue Thien – Hue sees positive economic outcomes in Q1

The central province of Thua Thien – Hue has witnessed positive economic results in the first quarter of 2018, especially in investment attraction, with nearly VND3.2 trillion (US$135.4 million), up 5.52% year-on-year.

The locality’s export turnover hit US$193.4 million, representing a yearly increase of 2.75%, while budget collection reached VND1.3 trillion (US$56.8 million), equivalent to 19.1% of the set plan. 

The total retail sales and service revenue was valued at VND9.2 trillion (US$402 million), up 9.53% year-on-year. The industrial production index in the period increased 5.3% compared to the same period last year. 

The largest-scale investment projects in the locality in the last three months included a solar power plant worth VND1.15 trillion (US$50.2 million), a VND360 billion (US$15.7 million) fibre factory, and a textile material factory with total investment of VND99 billion (over US$4.3 million). 

As many as 149 new enterprises were formed in the period with a total registered capital of VND1.22 trillion (over US$53.3 million). 

The locality also recorded strong growth of the tourism sector. It welcomed over 1.1 million tourists in the January-March period, up 39.52% year-on-year. The province aims to serve about 4-4.2 million visitors in 2018, 10% higher than 2017. 

Nguyen Van Cao, Chairman of the provincial People’s Committee, said the locality continues calling for investment in developing the Lang Co – Chan May Bay, one of the most beautiful bays in the world. 

It will make tourism and services a spearhead economy in the coming time, towards turning the locality into one of leading destinations of the country and the region.

Thua Thien – Hue plans to spend about VND6.2 billion (US$270.9 million) per year on supporting the development of small and-medium-sized enterprises. 

The support will focus on finance and credit, preferential policy and legal support, science-technology, and start-up.

Vietnam’s fruit, vegetable exports up 33.4% in Q1

Vietnam gained US$934 million from fruit and vegetable exports in the first quarter of 2018, up 33.4% from the same period last year with China, Japan and the United States remaining top importers.

According to the Ministry of Agriculture and Rural Development (MARD), the country exported US$284 million worth of fruits and vegetables in March while its imports amounted to US$92 million. 

The imports of fruits and vegetable in January-March saw a year-on-year surge of 47.7%, which mostly came from Thailand and China.

Farmers in the Central Highlands province of Lam Dong and northern provinces suffered a severe crisis as retail prices of vegetables plunged during March. The hardest-hit were radish and kohlrabi, whose price went down to only VND1,000 – 1,200 per kg due to oversupply. 

Onion was fetched at VND3,000 per kg, a 4-fold decrease from the pre-Tet (Vietnam Lunar New Year) holiday time, while prices of carrot and cabbage dropped from VND25,900 and VND11,500 per kg to VND20,900 and VND9,500 per kg, respectively.

In 2018, the sector will focus on developing processing facilities for agricultural, forestry and seafood products, particularly vegetables, pork and chicken, serving both domestic and overseas markets, said Tran Van Cong, deputy head of the MARD's Agro Processing and Market Development Authority.

The country’s fruit and vegetable exports reached a record US$3.5 billion for year-on-year growth of 43.02% last year.

The top 10 markets were China (75.6%), Japan (3.64%), the United States (2.94%), the Republic of Korea (2.59%), the Netherlands (1.81%), Malaysia (1.43%), Taiwan (1.33%), Thailand (1.03%), the United Arab Emirates (1.01%) and Russia (0.85%). Other markets accounted for 7.77%.

In addition to the traditional markets, Vietnamese fruits also managed to enter tough markets like the United States, the European Union, Japan, Canada, Australia and New Zealand.

VinaCapital and Dragon Capital pour $21 million in CenLand

Two large foreign investment funds managed by VinaCapital and Dragon Capital have spent $21 million buying a 25 per cent stake in Century Land JSC (CenLand).

Accordingly, VinaCapital, through Vietnam Opportunity Fund (VOF), bought a 12 per cent stake for $10 million, while Dragon Capital acquired 13 per cent for $11 million.

After the deal, VOF and Dragon Capital will become the two strategic investors of CenLand.

Founded in 2002, CenLand is currently prominent in the northern real estate brokerage market. The company is the pioneer in marketing Vietnamese real estate to foreign customers.

CenLand, which has a charter capital of VND500 billion ($22 million), was valued at $84 million by Dragon Capital before receiving investment from Dragon Capital. In 2017, its total revenue reached nearly VND1.3 trillion ($57.2 million).

Dragon Capital’s biggest investment fund is Vietnam Enterprise Investment Ltd. (VEIL) that is worth $1.23 billion.

In the field of real estate alone, Dragon Capital is managing nearly $70 million through Vietnam Property Fund. Dragon Capital's investment funds deal with real estate companies such as Khang Dien House Trading and Investment Joint Stock Company and Binh Chanh Construction Investment Shareholding Company (BCCI), among others.

In last December, Dragon Capital signed an investment contract with Hai Phat Investment Joint Stock Company (Hai Phat Investment), which owns many real estate projects in Hanoi. However, the details of the deal have not been disclosed.

VinaCapital, through VOF, was recently mentioned on account of the purchase of Vietnamese pasteurised eggs and poultry meat producer Ba Huan JSC.

Apart from acquiring a significant minority stake in the company, VOF said that it may also invest moderate additional capital during the next twelve months as the company delivers on mutually agreed milestones.

AirAsia to launch direct flights from Hanoi to Malaysia

AirAsia Airlines will launch direct air service between Vietnam’s capital of Hanoi and Malaysia’s Penang from July 1, the carrier said in a statement on April 5.

The direct flights which will be operated four times a week by AirAsia Berhad will further strengthen AirAsia’s inter-ASEAN connectivity.

Spencer Lee, head of commercial for AirAsia Malaysia, said Penang, which is Malaysia’s pride with its World Heritage status, welcomed seven million tourists via air travel last year. He expected the service will significantly contribute to the tourism sector of the two countries.

On this special occasion, AirAsia offers all-in fares starting from VND1.09 million (US$47.8) from Hanoi to Penang. Tourists can book tickets until April 15 for flights departing from July 1 to October 28 at airasia.com or via the AirAsia mobile app.

In addition, AirAsia offers 14 weekly one-way flights between Hanoi and Malaysia’s capital of Kuala Lumpur.

Sugar industry dreadful over mounting stockpile

The Vietnamese sugar industry is grappling with a host of difficulties due to a mounting sugar stockpile that has hit 530,000 tons, accounting for 70% of local output, while prices have also tumbled, said the Vietnam Sugarcane and Sugar Association (VSSA).

Data from VSSA showed that sugar inventories had skyrocketed from 200,000 tons last month to 530,000 tons now, which has prompted a sharp plunge in prices, Lao Dong reports.

Currently, sugar is being offered at plants at VND11,500 per kilo, which is even lower than production cost.

VSSA attributed the high stockpile to the unsold amount carried forward from the previous year’s crop. In the 2016-2017 harvest, sugar output amounted to some 1.24 million tons, equivalent to that of 2015-2015 period, but consumption has been slow.

Though sugar consumption is somber now, sugar plants have managed to maintain sugar plantations and keep the price unchanged for farmers, stressed Pham Quoc Doanh, chairman of the association.

Doanh said the low sugar price was due to the depressed global price, but what aggravated the problem for local sugar producers is the unchecked amount of smuggled sugar.

In the past few years, large volumes of Thai sugar have been illegally imported into Vietnam at an estimated 400,000-500,000 tons per year, but the amount via illicit trade surged to 600,000-700,000 tons in 2017, leading to large stockpiles of local sugar.

Apart from large volumes of smuggled sugar, according to VSSA, trade fraud in the industry are also rampant, especially for liquid sugar originating in China. As liquid sugar from China is subject to 13% import tariff, many traders have channeled it to a third country in ASEAN before exporting it to Vietnam to enjoy tax exemption.

Data from the General Statistics Office shows steady increases in liquid sugar imports into Vietnam over the years, from roughly 67,400 tons in 2015 to over 70,000 tons a year later and up to 89,450 tons last year.

Due to such illegal sugar business activities, VSSA proposed the market surveillance bureau under the Ministry of Industry and Trade and relevant agencies take measures to prevent sugar smuggling.

Land prices in HCMC rocket following Carina blaze

Land brokers have recently made use of an inferno at the HCMC-based Carina Plaza condo complex late last month to inflate prices of land, according to the HCMC Real Estate Association.

The association’s chairman Le Hoang Chau said at a conference on preventing and fighting fires at high-rise buildings on April 4 that the Carina blaze has directly affected the apartment segment, sending condo transactions in HCMC tumbling in the past 10 days.

However, Chau said the decrease seemed short-lived as local residents would continue purchasing apartments thanks to rapid urbanization.

He however warned that real estate brokers have raised prices of residential land following the deadly fire.

For example, some projects in District 9 whose infrastructure facilities are being built are now priced at VND18.5-19 million compared with VND16.5 million per square meter a week ago.

Some other projects on Nguyen Duy Trinh Street in the same district which were awarded with land use right certificates have their prices increased to VND30-33 million per square meter, compared with VND16.5 million advertised a week ago.

A real estate agent told the Daily on April 4 that many people have abandoned the ideas of purchasing apartments, and have decided to buy land instead. As a result, prices of land have risen in the past 10 days.

Milk prices unchanged despite zero tariff

Prices of powdered milk and ready-to-drink milk have remained unchanged now though import tariffs have been slashed to zero from the previous 5-7%, Thanh Nien newspaper reports.

Under free trade agreements between Vietnam and other countries, import tariffs on most dairy products have been brought down to 0% since the beginning of this year. In theory, lower import tariffs will be beneficial to consumers.

However, prices of imported milk have not been lowered accordingly. The paper conducted a survey at key milk outlets in HCMC, including supermarkets and vendors along Nguyen Thong Street, and found that milk prices have stay put.

Traders explained that as import tariffs on dairy products were basically low, at 5% to 7%, the tax change therefore has little impact on prices. Given the lower tariffs, dairy firms now tend to run big promotions to boost sales rather than to bring prices down, they said.

Moreover, in the average cost of milk production, input ingredients account for a small proportion, at some 40%, so the tax change on the final products is minimal.

Online payments for public services possible in Danang

Companies in the central coastal city of Danang are now able to make online fee payments for public services on the city’s e-government website.

The municipal government and the Vietnam Bank for Industry and Trade (VietinBank) signed a deal to launch the website on April 3.

Local companies can now register for online fee and charge payments for all public services from city-level departments and agencies. These kinds of payments will be made available at grassroots level next year.

Individuals and organizations should first declare their public service records on the e-government website at egov.danang.gov.vn to make such payments. Upon their payments, they will receive a confirmation by e-mail, and then check their record status on the website.

Tran Ngoc Thanh, deputy director at the municipal Department of Information and Communications, said local companies will not have to visit State agencies for offline payments any more. Besides, business information on their fee payments will be transparent.

He added the website is part of the city’s online public service program in the 2017-2020 period. There will be a total of 780 public services whose payments will be made online by 2020.

“By that time, local residents will be able to pay for electricity, water and internet services any time, thanks to the website,” he said.

Interest rate for social housing loans to be 4.8 per cent per annum

As per the Prime Minister’s decision, preferential loan interest rate for social housing  will be 4.8 percent per annum or 0.4 per cent a month at the Vietnam Bank for Social Policies (VBSP).

For instance, those who want to ask for a loan to buy social housing or repair their houses will be eligible for interest rate at 4.8 percent per annum. Interest rate for overdue debt will be 130 percent of lending interest rate.

The minimum repayment term is 15 years after the first loan is disbursed. If customers want to borrow a loan with a shorter term, they can negotiate with lending bank.

Samsung Vina unveils new flipchart     

Samsung on Friday unveiled in HCM City its new digital flipchart for office use, Samsung Flip WM55H.

The new product offers users many functions like sharing and noting information within a variety of content files.

Its interactive UHD display allows employees to hold business meetings anywhere and at any time, the company said.

An additional pen is attached so that users can write down or highlight information.

Samsung said the unveiling of the flipchart is part of its vision about a workplace of the future.

Kim Cheol Gi, general director of Samsung Vina, said it had taken over three years to study enterprises’ needs and working styles.

“We found that business meetings mostly focus on three main topics: creating ideas, collecting information and sharing the results.

“We want Samsung Flip to fulfil its role as a supporting aid in meetings in different working spaces.”

The flipchart is available in the Vietnamese market starting at US$3,500. 

Binh Thuan approves Song Luy 1 solar plant     

The People’s Committee of Binh Thuan province has approved in principle the construction of the Song Luy 1 solar power plant, invested by Quang Dien Binh Thuan Investment Joint Stock Company.

Song Luy 1 is a large-scale solar power plant built in the form of build-own-operate (BOO). The total investment for the project is VND875 billion (US$38.4 million), with an operating time of 50 years.

The power plant will have a capacity of 39MW and will use polycrystalline silicon photovoltaic technology and central inverter, which is connected to the national power grid through the 110kV connection line.

The project was approved by the Ministry of Industry and Trade in the development plan of Binh Thuan Province for 2011-15 period, with a vision to 2020.

Construction of the plant is expected to commence in June 2018 and will be completed in March 2019. It is expected that after the commercial operation begins, the Song Luy 1 plant will generate 75 million kWh of electricity in the first year.

The plant will contribute significantly to the supply of clean energy, contributing to the economic and social development of Binh Thuan Province in accordance with the policy of developing the clean energy industry of the State in general and the province in particular.

According to the development plan of the province, up to 2030, the total capacity of wind power plants will reach 2,500MW. The estimated capacity for thermal and solar power plants in the coming time is 10,000MW and 3,819MW, respectively.

Binh Phuoc cashew receives geographical indication

The National Office of Intellectual Property of Vietnam has issued a geographical indication (GI) certification to Binh Phuoc’s cashew.

The geographical indication for Binh Phuoc cashew includes material areas and raw cashew, cashew nuts, and salted cashew nuts.

The southern province of Binh Phuoc’s cashew has been well-known on both domestic and international markets thanks to its special taste and high nutrition values, including over 43 percent of protein and 23 percent of carbohydrate.

According to Secretary of the provincial Party Committee Nguyen Van Loi, cashew cultivation have helped reduced poverty and improved income of locals in many localities of the province, including remote, mountainous and border areas.

Receiving GIs will help build trademark of the product and promote exports.

Binh Phuoc currently has over 150,000 hectares of cashew farms, accounting for 50 percent of the country’s total cashew areas and becoming a “cashew capital” of Vietnam. Up to 75,000 local farmer households, mostly ethnic minority people, live on the industrial crop.

Binh Phuoc is home to over 200 cashew enterprises and processing facilities with total output of 82,000 tonnes per year, employing about 50,000 labourers. 

The product has been available in 25 countries and territories.

Vingroup enters pharmaceutical industry

Conglomerate Vingroup has announced its entry into the pharmaceutical industry with its Vinfa brand.

Along with pharmaceutical research, manufacturing, trading and export-import tasks, Vinfa will focus on the preservation, research and development of traditional Oriental medicines with origins in Vietnamese herbs.  

Following the success of the Vinmec Medical System and realising the expansion plan in the healthcare sector, Vingroup has established Vinfa Joint Stock Company in the pharmaceutical business, along with an investment to build Vinfa Drug Research and Production Centre in Gia Binh district, Bac Ninh province.

With a total investment of 2.2 trillion VND (97.7 million USD), the project’s first phase will be built in an area of nearly 10ha following international standards, including research, production, logistics and support works, according to Phan Thu Huong, Chairman of the Vinfa’s Board of Directors.

With investment from Vingroup, the entire production process at Vinfa will be equipped with the latest and advanced technologies to optimise the efficiency and quality of pharmaceutical products.

The objective of the Vinfa Drug Research and Production Centre is to produce and sell good-quality Oriental and Western medicines to serve the domestic and export markets.

Vinfa will also focus on the production of health food, vaccines and medical equipment of international standards to better meet the high demand for healthcare and treatment of people.

In addition to exploiting the country’s precious herbal resources, Vinfa plans to promote cooperation with prestigious pharmaceutical production industries from the United States, Europe and Australia. The aim is to receive consultancy, technology and technical expertise as well as facilitate the import of raw materials and products.

The group says the operation and quality-control process at Vinfa will have three core criteria: best-quality products, highly skilled and dedicated staff and striving towards professionalism.

The investment in the pharmaceutical production plant is considered a new step forward for Vingroup’s strategy of expansion in the healthcare sector to realise the mission of ‘Better Life for the Vietnamese’. Through Vinfa, we want to research, produce, import and export the best-quality products while preserving and developing precious medicinal herbs and traditional medicines of the country, said Huong.

Construction of the drug research centre is scheduled to begin in the third quarter of 2018. 

RoK low-cost carrier to open air route to Da Nang

The Republic of Korea’s low cost carrier Air Seoul announced on April 9 that it will launch a new route to the central Vietnamese city of Da Nang as an effort to expand its services in the Asia-Pacific region.

The carrier’s spokesperson revealed that the debut flight will take off on May 18, with the 195-seat A321 aircraft.

Air Seoul is currently operating six A321 chartered planes, including two 220-seat ones and four 195-seat ones. It is offering services on routes to 16 cities in five countries and territories, namely Japan, Cambodia, Malaysia, China’s Hong Kong and the US territory of Guam, she stated.

Enhanced people-to-people exchanges between the two countries and improved living conditions are resulting in an increase in the number of Vietnamese tourists to the RoK and vice versa.

There are now around 160,000 Vietnamese people living in the RoK, and about 150,000 Koreans are in Vietnam.

The East Asian country ranks second in terms of the number of tourists to Vietnam. Last year, Vietnam welcomed more than 2 million Korean visitors, a surge of 56.4 percent year-on-year. 

Three-tier cooperation plan to boost tra fish quality approved

The Ministry of Agriculture and Rural Development has approved a three-tier cooperation plan for production of high-quality tra fish breeds in the Mekong Delta from now to 2025.

The 597 billion VND (26.2 million USD) plan calls for tra fish breeding chains to produce about 50 percent of the Mekong Delta’s demand of 2.2–2.5 billion high-quality fries a year by 2020.       

By 2050, the production chains would supply 100 percent of the Delta’s demand of 2.5–3 billion high-quality fries a year.

The first of the three tiers includes research institutes and universities that use advanced techniques in selecting tra fish breeders, using tra fish breeding production techniques and transferring the techniques to the second tier.

The second tier includes provincial tra fish breed producing centres, companies’ tra fish breed nurseries, while the third-tier includes establishments that nurse tra fish from the newborn to fingerling stages.

The plan will upgrade the An Giang high-quality tra fish breed centre and establish three concentrated tra fish breed production areas in An Giang province.

Four concentrated tra fish breed production areas in Dong Thap province will also be set up.

In the Delta, there are 108 tra fish artificial reproduction establishments and 1,900 households that nurse newborn tra fish to the fingerling stage, mostly located in An Giang and Dong Thap provinces, and Can Tho city.

There are about 101,000 tra fish breeders (mature female/male) aged 6-7 years that produce fish fries in tra fish artificial reproduction establishments in the Delta, according to the Research Institute for Aquaculture No. 2.

The delta is now facing a shortage of tra fish fries because of unfavourable weather conditions and small-scale production. 

Vinh Phuc calls for investments in supporting industry

The northern province of Vinh Phuc has called for investments in support industries for automobile, motorbike and electronic production, said Nguyen Van Tri, Chairman of the provincial People’s Committee.

Statistics from the management board of the province’s industrial zone (IZ) in the first quarter of the year show that licences were granted to nine new foreign direct investment (FDI) projects with total registered capital of 45.11 million USD, meeting 17 percent of the whole year’s target. 

It also granted licences to two domestic direct investment (DDI) projects with total registered capital of 85.9 billion VND, increasing by 4.3 times from the same period last year.

Some 10 out of the 11 new projects were for electronic spare parts production and the remaining was for mechanic manufacturing.

So far, the province has had 246 projects in its industrial zones, including 46 DDI and 200 FDI projects.

Tri said the province always attaches importance to providing benefits to investors, while facilitating businesses in their operation and investment in the locality.

He added that the number of investment projects in the support industry for mechanic, manufacturing and electronic production in the province is limited, which cannot meet with the market development.

Figures from the management board of the province’s industrial zone revealed that by the end of the first quarter of 2018, the three sectors of automobile, motorbike and electronics saw higher growth than the corresponding period last year, contributing more than 430 billion VND to the State budget.

The automobile and motorbike assembly sectors posted 68.5 million USD in revenue, representing a year-on-year increase of 11 percent and an export value of 34.3 million USD.

The electronic sector was estimated to have 595.1 million USD in revenue, increasing 57 percent from last year with an export turnover of 558.4 million USD.

Chairman Tri said attracting investments in the support industry and spare parts would not only benefit the State budget but also create jobs for the local people. The sectors provided jobs to 48,790 labourers, accounting for 63 percent of the total labourers working in FDI firms in the province.

He said he believes that businesses from Japan and the Republic of Korea will pay attention to the province in the future.

The province will continue with its IZs and industrial clusters to welcome both local and foreign investments.

Southern province earmarks 117.1 million USD in support of SMEs

The People’s Committee of southern Tra Vinh province has allocated more than 2.66 trillion VND (around 117.1 million USD) to support small- and medium-sized enterprises (SMEs).

Priority will be given to supporting SMEs where production is based on enhancing local advantages such as coconut farming, tourism, aquaculture, vegetables, handicrafts and fruit.

The province plans to use the funds to implement supportive solutions, including the creation of favourable policies and simplification of administrative procedures.  

The funds will also be used to provide financial and credit support and to improve infrastructure such as facilities, workshop, transportation, electricity and water supply, along with waste treatment to protect the environment.

The province also provides technical support such as providing useful information and databases; connecting supply and demand; providing advisory services for SMEs on business establishment, development, and management; and organising dialogues with authorities at all levels.

By 2020, the province will strive to have some 4,000 SMEs, of which seven percent are medium sized, at least 30 percent are female-owned and 15 percent are owned by ethnic minorities. Each year, enterprises create 22,000-25,000 new jobs.

Chairman of the provincial People’s Committee Dong Van Lam said currently more than 2,000 enterprises are operating in the province with total registered capital of 25.29 trillion VND (1.11 billion USD), creating jobs for more than 86,000 workers in and around the province.

However, of this total, small and micro enterprises account for more than 90 percent. Therefore, most of the enterprises in the province encountered difficulties in accessing support policies, preferential loans, science and technology, and consumption markets.

Fuel prices rise from April 7

The prices of all kinds of fuel increased as from 15:00 of April 7 following a joint decision of the Ministry of Finance and Ministry of Industry and Trade.

Specifically, the price of E5 RON92 petrol rise by 592 VND per litre, while that of diesel increased by 638 VND per litre and kerosene up 521 VND per litre.

After adjusted, the prices of E5 are not higher than 18,932 VND per litre, and those of diesel 0.05S and kerosene should not be higher than 16,354 VND per litre and 15,081 VND per litre, respectively.

The ministries of Industry and Trade and Finance review fuel prices every 15 days to adjust the prices in accordance with fluctuations on the world market.

During the past 15 days, the world price of RON 92 petrol, which is used to produce E5 fuel, averaged 76.963 USD per barrel, up over 3.7 USD over the level in the previous review period. The prices of diesel oil also went up 4.1 USD per barrel, prompting the adjustment.

The petrol and oil prices were kept unchanged in the previous two reviews.

Ha Nam strengthens ties with RoK’s Gyeonggi province

The northern province of Ha Nam commits to creating the most possible favourable investment environment for both domestic and foreign enterprises, including those from the Republic of Korea and Gyeonggi province in particular.

The pledge was made by Vice Secretary of the provincial Party Committee and Chairman of the People’s Council Pham Sy Loi at a reception on April 7 for Chairman of the People’s Council of Gyeonggi province Jung Ki Yul.

Loi told the guest that Ha Nam is calling for investment to develop its economy, with the focus on industry and hi-tech and clean agriculture.

He asked the People’s Council of Gyeonggi to promote cooperation with Ha Nam, through introducing the Vietnamese province’s investment climate to RoK and Gyeonggi investors who are working in the fields of support, processing and manufacturing industries.

He also requested the Korean side to help Ha Nam organise investment promotion activities in the RoK and Gyeonggi, and hold cultural exchange programmes between the two localities.

Jung Ki Yul agreed to boost collaboration with Ha Nam province in economics, culture and social affairs in order to tighten the bilateral relations.

At present, the RoK is the biggest investor in Ha Nam province with 111 projects. Of the total, 13 with a total investment of 663.97 million USD, accounting for 49.12 percent of the capital, are run by enterprises from Gyeonggi province.

Vietnam Expo 2018 gives good chance for boosting partnership with Cuba

The opening of a national booth of Cuba at Vietnam Expo 2018, to be held in Hanoi from April 11-14, will be a good chance for Vietnamese and Cuban businesses to facilitate their partnership and tap into the economic cooperation potential between the two countries.

This year, 30 Cuban businesses will participate in the event, the most during the country’s decade-long presence at Vietnam Expo. The firms operate in diverse areas, including electronic mechanics, metals, renewable energy, agriculture, biological, pesticide, irrigation, pharmaceuticals, and health care.

According to the Ministry of Industry and Trade, Vietnam is among the top 10 trade partners of Cuba, and the second most important Asian partner of the Caribbean country.

Vietnam’s most popular product in Cuba include farm produce, garment, consumer goods and telecommunication products, while Cuba’s strengths include education, health care and construction.

Last year, trade revenue between Vietnam and Cuba reached 224.3 million USD, with Vietnam’s exports valued at 217 million USD and imports 7.3 million USD. The two sides are striving for the target of 500 million USD in trade in 2022.

Cuba is the gateway for Vietnam to access the Latin American market, while Vietnam offers the path for Cuban firms to approach Asian countries.

Cuba is now a promising market for Vietnamese firms in tourism, agriculture, telecommunications, consumer goods, footwear and garment-textile. 

During the recent visit to Cuba of Party General Secretary Nguyen Phu Trong, Vietnam’s Viglacera Corporation received a licence to develop an industrial park in Cuba’s Mariel Special Economic Management Zone.

In recent years, Cuban businesses have become more active in Vietnam thanks to dynamic and open foreign policies of Vietnam.

Minister urges fisheries development to base on three pillars

It is necessary to develop the fisheries sector based on three pillars of chain exploitation, processing aligned with the market and using science and technology to develop aquaculture, said Minister of Agriculture and Rural Development Nguyen Xuan Cuong.

He said seafood exploitation, preservation, processing and consumption should be based on demand of domestic and foreign markets, adding that fishing activities need to be re-organised.

Businesses should enhance processing to add value to their products. Meanwhile, the latest scientific and technological advances need to be utilised to develop aquaculture.

Pointing out problems in the fisheries sector, the minister said fishing activities have only developed in quantity instead of quality. While fishing vehicles and equipment are limited, seafood classification and preservation haven’t been done well.

The fisheries sector faces an array of challenges posed by climate change, international integration and the sector’s restructuring, Cuong added.

Data of the ministry’s Directorate of Fisheries show that aquatic exports reached 1.7 billion USD from January to March, up 11.5 percent from the same period of 2017. 

The US, Japan, China and the Republic of Korea were the top importers of Vietnamese aquatic products in the first two months of 2018, accounting for 50.5 percent of Vietnam’s total aquatic exports. Notably, strong growth was recorded in shipments to the Netherlands (49.7 percent), Thailand (35.5 percent) and China (34.9 percent).

However, the fisheries sector encountered a major challenge in March when the US decided to levy high anti-dumping duties on shrimp and tra fish, two key export items of Vietnam. The directorate said this is a groundless decision and will cause difficulties for businesses since the US is a leading tra fish importer of Vietnam. Agencies are working to solve this problem.

Regarding the European Commission (EC)’s “yellow card” warning issued last September for Vietnam’s failure to progress in fighting IUU fishing, Minister Cuong said the country has been taking actions as suggested in the nine recommendations of the EC. It is striving to build a fisheries sector of sustainable development that is responsible and adheres to international regulations.

Deputy Minister of Agriculture and Rural Development Ha Cong Tuan said the EC agreed to send a delegation to assess the situation in Vietnam in late April or early May so as to consider whether or not the yellow card should be withdrawn.

Vietnam is satisfied with the strides it has made during the implementation of the EC’s recommendations recently. These are not temporary solutions, and the country will keep working to develop a sustainable fisheries sector, he added.

Vietnam’s rambutan to be shipped to New Zealand

Vietnam is set to begin exporting rambutans to New Zealand after years of trade negotiations between the two countries.

The move comes after a meeting between Deputy Prime Minister Vuong Dinh Hue and senior officials from the government of New Zealand in July of last year during Hue’s official working visit to the country.

According to the Ministry of Agriculture and Rural Development’s plant protection department, Vietnam currently grows three varieties of rambutan. These are java, Thai and nhan rambutans. Nhan rambutans are smaller than other varieties and are considered to have the best taste among rambutan varieties. 

The fruit is mainly grown in the southern provinces, with a total area of more than 50,000 ha dedicated to rambutan growing, supplying roughly 300,000 tonnes of the fruit per year.

A report from the Vietnam Commerce Office in New Zealand showed that the annual exports of rambutans from Vietnam are modest. The country’s turnover from fresh fruit exports have not been stable, and have much untapped potential.

New Zealand only allows imports of goods that pass the country’s risk analysis, their health standards are also among the strictest in the world. The number of items considered annually for import by the New Zealand Ministry of Primary Industries (MPI) is relatively limited in comparison to other countries.

Currently, Vietnam exports just two fresh fruit items to New Zealand: mango and dragon fruit. Vietnamese rambutans passed the country’s import risk assessment in 2014.

The new "passport" for Vietnamese rambutan to New Zealand will contribute to the increased export turnover of vegetables and fruits from Vietnam in the coming years. In 2017 the country’s turnover from exporting fruits and vegetables reached over 3.5 billion USD, up by 40 percent from previous years. In the first quarter of this year, the country’s exports of fruit and vegetables valued 950 million USD, a 35.6 percent increase from the same period last year.

Vietnamese rambutan has been exported to the US, Canada, and the EU, as well as the Middle East, Africa, China and neighbouring countries in Southeast Asia.

According to international regulations on imports of fresh fruit, rambutans must meet strict criteria before being considered by importers. Currently, each country has its own criteria for imported fruit, so businesses must comply with the quarantine standards of the importing country.