VND30-trillion real estate bailout to take effect

The Government has granted a credit stimulus package, amounting to VND30 trillion (nearly US$1.5 billion), to shore up the real estate sector.

The Head of the State Bank of Vietnam (SBV)’s Credit Department, Nguyen Viet Manh, said on May 9 that a circular guiding the disbursement of the bailout package will be released next week.

This shows the government’s great effort in the current context of limited budget, Manh said, adding that the package would offer property developers loans with low interest rates, hovering around 6 percent/year.

The SBV will also allow commercial banks to provide credit loans to those who rent or buy houses for low-income earners, he added.

Vu Xuan Thien, an official of the Construction Ministry, revealed that his ministry and the central bank have weighed up the pros and cons of the circular to ensure it will be brought to life as soon as it is released.

However, he said, it is essential to define conditions for lending and identify subjects to incentive loans.

Vietnam attends Paris Fair 2013

Vietnamese businesses are showcasing their products at an annual retail fair in Paris from April 30 to May 12.

Foire de Paris 2013, the largest of its kind in France, has featured approximately 3,400 stands from a number of European countries, including 50 from Vietnam.

Vietnamese items such as handicrafts, brocade products, jewellery, clothes, silk scarves, souvenirs and Ao dai (traditional long dress) captured great attention from visitors.

Highlight of the Vietnamese space is a stand showcasing creative lacquer paintings by young Vietnamese artists and painters.

Guersende Roudy, Market Managing Director at the Paris Fair, said she was impressed by Vietnamese designs, commending the businesses’ progress in diversifying eye-catching products and improving the quality.

Leaders of the fair met the Vietnamese Embassy in France discussing support to Vietnamese businesses to take part in next year’s fair.

Ambassador to France Duong Chi Dung noted that Vietnamese businesses’ participation shows their strong desires to seek partners and expand markets hares in Europe in the context of the global economic downturn.

He said he will work with the organising board to support Vietnamese businesses in displaying their products in the 2014 fair.  

 HCM City, RoK localities tighten links

Ho Chi Minh City and the Republic of Korea (RoK) have agreed to enhance cooperation in economics, cultural exchanges and the exchange of delegations to work in fields of mutual concern.

The decision was reached by Chairwoman of the municipal People’s Council Nguyen Thi Quyet Tam and a member of RoK Parliament’s Special Committee on Ethics, Education, Culture, Sports and Tourism Youn Kwan-suk in HCM City on May 9.

Tam said there remains great potential in the cooperation between HCM City and the RoK’s localities, especially in fields of each side’s strength.

She also hailed the fine relations between the two sides over the past time. At present, the RoK is one of the leading investors in Vietnam and HCM City. Numerous Korean firms are operating effectively in the city, she added.

Youn Kwan-suk said he hopes the municipal authorities will continue making it easier for Korean businesses to invest in the city.

Over 1,800 Korean businesses operate in Vietnam and the figure will continue to grow, he added.

He also expressed his belief that the city will overcome challenges amid the global economic downturn and develop further in the coming years.

Nokia factory’s operations imminent

The Nokia mobile phone manufacturing plant in northern Bac Ninh province’s Vietnam-Singapore Industrial Park (VSIP) is expected to enter operation in mid-2013.

According to the latest website information updated by the Bac Ninh industrial zones’ management board, the factory is recruiting 600 workers and 100 technicians in preparation for commercial operations next month.

The mobile phone giant started construction on its Vietnam-based plant in Bac Ninh province in April 2012 at an estimated cost of US$302 million.

The factory is designed for an annual output of 180,000 units and will generate jobs for around 10,000 local workers. Most of its products are for export.

APEC seminar focuses on business contingency planning

Asia-Pacific Economic Cooperation (APEC) officials gathered in Hanoi on May 9 to devise measures helping businesses resume operation and production in the wake of natural disasters.

The event—the second of its kind jointly organised by Vietnam and Australia—was an excellent opportunity for APEC member economies to share experiences and enhance cooperation in natural disaster mitigation and economic development.

Delegates highlighted Government agencies’ key role in mapping out recovery plans capable of maintaining production and business operations despite the potential impact of natural disasters.

Leslie J Williams, an Australian official who co-chairs a working group on dealing with emergencies, said businesses should have plans in place to maintain their operations in the event of a disaster.

They should also urge their staff to actively contribute to the implementation of these plans, he said, adding that both employers and employees must share responsibility to help their companies overcome difficulties.

The seminar—a collective initiative from Australia, Vietnam, Singapore, and Taiwan (China)—was approved by the APEC Emergency Preparedness Working Group (EPWG).

Garment exports maintain steady growth

Garments, one of the Vietnam’s key export commodities, have earned US$5.087 billion in revenue during the first four months of 2013, a year-on-year rise of 20.3 percent.

The sector’s export earnings are expected to surpass US$18 billion by the end of the year if the rising trend is successfully sustained.

However, challenges remain, low competitive capacity, low productivity, poor quality, insipid designs, and sluggish support industries.

The value of materials imported for garment production has stayed high over the past four months. The US$4.286 billion total, equivalent to 84.3 percent of export revenue, comprises cloth (US$2.34 billion), thread (US$471 million), and cotton (US$393 million).

Vietnam’s garments face tremendous competition from other countries, hurting market share.

The US is Vietnam’s largest garment importer, accounting for nearly half of the sector’s exports. Garments constitute 38.6 percent of Vietnam’s US exports in general.

Other major markets include Japan, the Republic of Korea (RoK), the UK, Spain, Canada, and Brazil.

In 2009, garments overtook crude oil to become Vietnam’s largest export commodity, but in the last four months of this year it fell to second, behind telephones.

The domestic sector contributes 40.9 percent of garment export revenue with the remainder coming from the foreign invested sector. The country has about 6,000 garment businesses that—combined with around some hundred thousands private units—employ over 1 million labourers.

Vietnam rep.office opens in Emilia –Romagna

A Vietnamese representative office officially opened in Emilia-Romagna (Italy) on May 8 to help boost Vietnam’s economic cooperation with the region and Italy as a whole.

Ambassador to Italy Nguyen Hoang Long said the office will create the best possible conditions for Italian and Vietnamese to increase cooperation and investment.

At a business forum entitled “Vietnam-destination” held after the inauguration ceremony, Tomaso Andreatta, Vice Chairman of the European Chamber of Commerce in Vietnam, said Vietnam has offered investment incentives for many Italian businesses operating successfully in Vietnam, such as Piaggio and Ariston.

He expressed his hope that Vietnam will be a potential destination for businesses from Emilia-Romagna region to approach some other huge markets, like ASEAN, ASEAN + 6, China and India.

Michele D’Ercole, Chairman of the Italian Chamber of Commerce in Vietnam, spoke highly of Vietnam’s stable economic growth, favourable business and investment environment and industrious labour force.

He said many Italian businesses are capable of assisting Vietnam in the fields of garbage treatment, biotechnology, vocational training and tourism development.

The forum was part of “Vietnamese Days in Emilia-Romagna” from May 3-11.

The Vietnamese Embassy plans to have an exchange of traditional culinary skills with leaders, friends and citizens of Emilia-Romagna on May 11.

Int’l jewelry and watch exhibition in HCM City

The 10th International Jewelry and Watch Vietnam (10th IJV) will be held at the Tan Binh Exhibition and Convention Centre in Ho Chi Minh City from  May 9-12, 2013.

The event, co-organised by Vietcham Expo and the World Trade Fair International Ltd Company in Hong Kong (China), is expected to attract more than 30 domestic and foreign businesses.

They will showcase valuable diamonds and gemstones, jewelry and watches, and latest products.

Hong Kong’s leading jewelry producers, such as Christelle Ltd, Dai Sun Jewellery Co Ltd, Glory United Investment Ltd, Golden Master Jewellery Co Ltd, Hang Seng Jewellery Manufactory Ltd, JSB Jewellery Co, and Tai Fook Group will introduce some complete collections of 14k and 18k jewellery made from diamonds and gemstones.

3D Jewellery Co Ltd, Grnad Oro, Rio Pearl, Cara Diamonds Ltd, Hi Star Ltd and Mihir Gem Ltd and Diamond & Oceanus Hong Kong will display a wide range of expensive items.

Timber exports in 2013

There are promising signs that timber exports will further pick up this year.

With timber exports in the first quarter of 2013 reaching US$1.18 billion, up 16.5 percent compared to the same period last year, Vietnam currently ranks sixth in the world, second in Asia and first in Southeast Asia.

Among Vietnam’s major importers, the US ranked first, accounting for 33.2 percent of its total timber export earnings. Next came the EU, China, Japan and the Republic of Korea.

The growth of the timber industry is mainly thanks to cheap labour to produce raw products with little added value by importing 80 percent of its total materials, worth US$1 billion per year.

Vietnam earned US$4.67 billion from timber and forestry exports in 2012, an increase of 15.3 percent against 2011.

The Vietnam Timber and Forest Product Association (VIFORES) plans to raise its export earnings to US$5.2–5.5 billion by the end of this year, up 15–17 percent. Exports are expected to grow by 18 percent to the US, by 15 percent to China, and by 11–12 percent to Japan.

Many domestic businesses have already received more orders from the US rather than the EU. This is because since March 2013, European countries have applied the European Union’s regulation 995/2010, banning the import of timber products with unknown origins. Another reason is Vietnam has not yet completed negotiations for the EU's Forest Law Enforcement, Governance, and Trade Action Plan (FLEGT) while exporters are asked to clarify origins of their products independently.

It’s not easy to meet the US Forest Stewardship Council’s (FSC) Forest Management Standard as 70 percent of wood is traded multiple times and around 80 percent of wood materials imported from Laos and Cambodia do not have FSC certification. All this explains why there will be a fall in timber exports to the EU market in 2013.

There is still hope for the best when Vietnam finally signs the free trade agreement (FTA) with the EU, most of its timber products will enjoy zero tariffs or a minimum tariff of 4 percent. Especially after the FLEGT and FTA are both signed, timber exports will surge considerably.

Wood and timber products exported to the EU cannot only use the FLEGT certificate as proof of origin as it requires Vietnam to sign a Voluntary Partnership Agreement (VPA) in this connection. Vietnam’s negotiations with the EU started in 2010, but there remain disputes over land, forest, and environment usage rights on the way to the signing of VPA FLEGT.

VIFORES Secretary-General Nguyen Ton Quyen has urged the Forestry Department to establish a verification system to control wood and timber exports and complete the VPA/FLEGT negotiations with the EU as early as possible. He proposed the State lower annual loan interest rates from 11.4 percent to 8–9 percent to help businesses access the capital needed to improve their wood processing capacity.

The footwear industry is set to expand its international cooperation and supply chain for long-term, sustainable growth.

The Ministry of Industry and Trade (MoIT) has recommended the footwear sector capitalise on ongoing regional and global production transition trends to achieve higher growth.

It says the footwear industry must develop material production and focus on seizing the advantages of modern technology while keeping environmental concerns in mind.

The Ministry also stresses the need for administrative reform—especially in tax and customs—and for promoting local footwear product trademarks in overseas markets. Expanding markets and distribution networks are also required if export activity is to be boosted, the MoIT says.

Economists say that Vietnam’s World Trade Organisation membership has made it an ideal base for footwear producers as trade barriers have gradually been removed. However, the local footwear sector is still burdened with disadvantages like poor pattern designs, high production costs, imported material dependence, and small-scale production.

According to the MoIT’s latest report, Vietnam earned US$2.25 billion from footwear exports in the past four months, up 9 percent from a year earlier.

The Vietnam Post and Telecommunications Group (VNPT) and Vietnam Study Promotion Association launched the Vietnam Talent Awards 2013 on May 8 in HCM City.

The awards were first launched in 2005 and have attracted thousands of talented individuals from across the country working in the fields of information technology, science, health, telecommunications and business administration.

This year’s awards will include a VND100 million first prize, a VND50 million second prize and a third prize of VND30 million.

The deadline for applications is August 31 and the awards ceremony will be held in Hanoi on November 20.

Ly Kiet, Deputy Director of the VNPT group, said that this is the ninth year the awards have been presented to encourage scientific and technological progress and contribution to social development.

Symposium on business continuity planning

A symposium was held in Hanoi on May 8 to discuss ways to help enterprises maintain production and business operations in the aftermath of natural disasters.

The three-day event under the umbrella of the Asia-Pacific Economic Cooperation (APEC) Forum is a common initiative by Australia, Vietnam, Singapore and Taiwan that was approved by the APEC Emergency Preparedness Working Group (EPWG).

Addressing the opening ceremony, Deputy Head of the General Department of Irrigation under the Ministry of Agriculture and Rural Development (MARD), Nguyen Xuan Dieu, said that Vietnam regularly has to cope with storms, flash floods, forest fires, droughts and landslides. However, thanks to the Government’s efforts, organizations, businesses and the international community, human losses from natural disasters have been reduced by 8 percent, but economic losses have increased over the past five years.

The Vietnamese Government is currently encouraging businesses to purchase insurance against natural disasters to protect their interests.

At the seminar, foreign experts discussed policies and programs for developing plans to maintain production and business operations in order to recover from the impact of natural disasters.

 Workshop discusses Vietnamese labourers in RoK

Many Vietnamese labourers continue working in the Republic of Korea (RoK) despite of their expired labour contracts, heard a workshop in Hanoi on May 7.

The workshop, jointly held by the Department for Overseas Labour Management and the Overseas Labour Centre, reviewed measures to solve the situation with a focus on reducing the number of labourers from the 11 provinces with the highest number of people working in the RoK, whose employment contracts expired in 2012 or 2013.

According to the Department for Overseas Labour Management, communications activities over the recent period have raised local authorities’ awareness in encouraging Vietnamese workers in the RoK to return home when their contracts end.

These activities demonstrated Vietnam’s efforts to reduce the rate of workers with expired contracts in the RoK as well as called for Korean employers to take responsibility and help decrease the illegal residence of Vietnamese labourers.

Participants assessed that localities’ great and strict efforts are necessary to reduce the rate of labourers living illegally overseas, creating the foundation for the Korean Ministry of Employment and Labour to sign the memorandum of understanding to continue receiving Vietnamese workers within the framework of the Employment Permit System (EPS) programme.

In the coming time, the Department for Overseas Labour Management and the Overseas Labour Centre (OLC) will propose the Government issue a decree on fining labourers who have expired labour contracts and continue working illegally in foreign countries, with a fine valued up to VND100 million (approximately US$5,000).

Accordingly, OLC representative offices will also be set up to better support issues that arise with those working overseas.

In addition, the Ministry of Labour, War Invalids and Social Welfares will propose the RoK side change the way it pays allowances to Vietnamese workers when they stop working, which should be implemented after they have returned to their home country, as well as punish employers who use illegal labourers.

Asia Commercial Bank faces great difficulties

More than 200 staff of the Asia Commercial Bank (ACB), one of the most well-known banks in Vietnam, have been laid off over the past 3 months due to financial difficulties.

Although ACB has employed more staff last year, they have been made to cut 222 staff members.

The bank suffered losses from most of its investments, which ended included a decrease of VND2.3 billion (USD110,000) in banking fees and VND84 billion in the gold market.

Their financial report showed that ACB gained VND307 billion in profit, a 63% decrease from the same period last year.

According to ACB, they were required to pay more to the risk prevention fund because of mounting bad debts. Their ratio of bad debts over outstanding loans increased from 2.5% early this year to 2.88%.

The report also showed that ACB's total assets had shrunk by VND397.6 billion in the last three months.

ACB also has a deficit of VND718.9 billion in short-term interbank loans, which has led to an ongoing investigation by the court.

Economic zone lets tourists buy duty-free goods

A new regulation on buying and selling tax-free goods approved by the People's Committee of southern Tay Ninh Province was implemented at Moc Bai Border Gate Economic Zone from Tuesday.

It means that tourists may now purchase duty-free imported goods valued at no more than VND500,000 per person per day.

Enterprises that sell goods to Cambodia worth more than VND15 million are required to have contracts and fulfill all customs procedures.

Bac Ninh attracts more foreign-invested projects

The northern province of Bac Ninh last month granted licences to 11 new foreign-invested projects with a total registered capital of US$18.3 million, local authorities said.

This brought the number of licensed projects in the province over the past four months to a total of 36. They are worth a combined capital of $99 million.

The province is one of the leading draw cards for foreign investment. It is now home to 392 projects worth $4.86 billion.

Korean lens firm expands production

Korean-invested optics maker Haesungvina said on Tuesday it had pumped an additional US$20 million into more than doubling its output in Viet Nam.

The cash injection will bring the company's total investment capital in Viet Nam to $36 million and help it produce 25 million optical products per year.

The completely foreign owned company, a subsidiary of Korean Haesung Opitics Co Ltd, also plans to expand its production facility in the northern province of Vinh Phuc from 14ha to 35ha.

The main supplier of camera lenses for Samsung Electronics said that after completing the additional investment, it will recruit 700 more employees, bringing its total workforce in Viet Nam to 1,300.

Chairman of Vinh Phuc Province Phung Quang Hung said the province has created favourable policies to help the company operate efficiently and even "cleared land for the company to expand its production facility."

Haesungvina has been operational in Viet Nam for more than a year. Its parent company in South Korea, founded in 1988, specialises in optics for mobile phone cameras, camcorder finder optics and DVD optical lenses.

Innovation, creativity help firms survive

The deputy director of Minh Long Company, a leading porcelain producer in Viet Nam, surprised participants at a recent conference held in HCM City when he told them that one of his staff members had been given a VND70 million (US$3,400) bonus.

"After we bought a machine from Finland, we realised that we would have to spend $200,000-300,000 to hire new technicians from outside companies to operate the machine because no one at the company knew how to run the machine," Ly Huy Sang said.

Instead of hiring new staff, Sang said he encouraged his employees to first study the machine manuals and learn as much as possible about the equipment on their own.

Because of their study, the company was able to save costs and shorten their technicians' training period in Finland from six to four weeks.

"Thanks to their innovation and creativity, we saved a lot of time and money, so we gave them bonuses. And the leader of the group received VND70 million," Sang said.

The success story of Minh Long company comes as an outgrowth of today's tough economic climate, which requires businesses to cut costs, maintain quality and come up with creative ways to solve problems.

"The company is like a live body. It needs to develop, be creative and change day by day to achieve a better life," Sang said. "No innovation, no existence."

"Thanks to our staff's creativity, our current capacity in one day is as much as what it once was in one month," he added.

Tran The Cuong, director of Viettel's Telecom and Information Technology Solution Centre, has also seen the benefits of an increased emphasis on innovation and creativity.

This was especially apparent when Viettel negotiated a deal with Vinamilk.

Cuong said that many Vietnamese companies buy software from foreign businesses, spending more money than is necessary, and they also neglect the specific needs and demands of Vietnamese consumers.

In the Vinamilk case, Viettel asked the company to use the telecom giant's software to manage the dairy giant's distribution network.

Viettel told Vinamilk that it could pay for the software at a later date. If the use of the software proved to be unsuccessful, the company would not owe any money to Viettel.

However, Vinamilk was very satisfied with the Viettel software, which has been sold to many other companies as well.

"Our story shows that creativity and innovation is part of our daily life, our every breath," Cuong said.

This also applies to another company, Pomina Steel.

Do Duy Thai, company chairman, said that an innovative use of technology had led to low costs and high production levels.

He said that the use of advanced IT was critical to the company's success.

This has led to more use of advanced technologies, helping the business to compete with foreign competitors and survive during the global financial crisis.

"Such stories are lessons for Vietnamese companies to think about creativity and innovation. In the near future, the Ministry of Science and Technology will work with the Association of Vietnamese High-Quality Goods Producers to offer support for domestic companies so they can begin to be more innovative and creative," said Vu Kim Hanh, the association's chairwoman.

Challenge fund seeks business ideas

The Viet Nam Business Challenge Fund (VBCF) – a 7 million pound (US$10.87 million) programme funded by UK Department for International Development (DFID) officially announced yesterday its second call for proposals in HCM City.

Private businesses – both national and multinational - operating in Viet Nam have been invited to submit innovative and inclusive business ideas in three sectors: Agriculture, Low Carbon Growth: and Infrastructure and Basic services from April 24 to August 30.

A series of road shows will be held across the country to provide further information on Viet Nam Business Challenge Fund (VBCF) in Dak Lak, Hue, HCM City, Ha Noi, Nam Dinh and Tuyen Quang.

Nguyen Hong Ha, deputy director, HCM City branch of the Viet Nam Chamber of Commerce and Industry said many Vietnamese businesses, especially in the private sector, are lacking access to the market because they do not have sufficient capital.

VBCF, set to function from September 2012 to December 2015, is a specialised fund designed to support the private sector in Viet Nam by developing innovative, inclusive business models that deliver both commercial benefits for the company and social impacts for the low-income population segment.

"It aims to create sustainable growth for private businesses and contribute to poverty eradication," Ha said.

Tu Thu Hien of the DFID in Viet Nam said VBCF is managed by the SNV Netherlands Development Organisation.

The funding provided by VBCF ranges from $100,000 to $800,000, depending the project size, small, medium or large.

Projects are selected based on several criteria including innovation, long-term commercial feasibility and sustainability, benefit for low income beneficiaries and the level of benefit generated.

Deposit interest rates vary between domestic banks

Interest rates haven't shown significant changes since Vietcombank's rate cuts, but they have revealed the sharper rate difference among the banks.

Vietcombank on Monday slashed its deposit rates by up to 1 percentage point, a move its general director Nguyen Phuoc Thanh said was to re-organise capital sources, stimulate consumption and help lower lending rates to support enterprises.

The rates fell to 6 per cent for monthly deposits, 7 per cent for six-month to nine-month terms, and 8 per cent for a 12-month term.

BIDV yesterday also revised deposit rates down to 6-7 per cent for terms of less than 12 months, and 8 per cent for 12 months or more; while Vietinbank announced that it would cut short-term deposit rates by 0.5 percentage points to 7 per cent from today.

Most other banks currently apply a rate of 7.5 per cent for deposits for less than 12 months, and 10 per cent for 12 months or more.

Lending rates have also fallen sharply at Vietcombank, now staying at around 10.5-11.6 per cent. According to Dau tu (Viet Nam Investment Review), the bank applies a rate of 11 per cent for house loans while the Maritime Bank sets a rate of 15-17 per cent.

National Financial and Monetary Policy Advisory Council member Cao Sy Kiem said that the classification of interest rates was positive as it reflected the banking system's health.

"Healthy banks can attract depositors even when they cut deposit rates and this will create conditions for them to lower lending rates and boost credit growth. Weak banks won't be able to lure more borrowers by raising deposit rates," he said.

On Monday, Thanh said there should be vanguard banks cutting interest rates to help enterprises access cheaper loans following Government directions, noting that the 7.5-per-cent ceiling deposit rate stipulated by the State Bank could be reduced further under current economic conditions.

VnExpress.net quoted LienVietPostBank vice chairman Nguyen Duc Huong as saying that cutting interest rates should only be moderate to protect the investments by depositors rather than be attempts to save poorly-performing businesses.

"Who will want to be a depositor if interest rates fall to 5 or 6 per cent?," he asked. "For companies suffering losses, even a zero-per-cent interest rate is high. Now that they can't sell their products, they won't be able to manage loans."

Senior economist Vo Tri Thanh calculated that if the deposit cap was to be cut further in this year, it could be reduced 1 percentage point to 6.5 per cent. He said lending rates should be slashed more sharply, possibly to below 10 per cent for prioritised sectors.

At a regular meeting session late last month, the Government discussed the possibility of setting a ceiling lending rate.

Funds sought for satellite hospitals

The Ministry of Health is seeking Official Development Assistance (ODA) and other legal capital to develop 45 satellite hospitals, with the aim of relieving overcrowded conditions in 14 major hospitals across the country.

The ministry plans to open the satellite hospitals from now to 2015, according to a report in the Dau Tu (Viet Nam Investment Review) newspaper.

Nine of the 14 major hospitals belong to the Ministry of Health, and another five are under the supervision of HCM City's Department of Health.

A large amount of capital is needed to upgrade infrastructure, buy equipment and train staff, according to the ministry. The amount of investment is expected to increase during the 2016-20 period.

Tran Binh Giang, deputy director of Ha Noi-based Viet Duc Hospital, told Dau Tu that each satellite hospital needed at least three large operating rooms.

In addition to upgrading infrastructure, satellite hospitals need to make better use of information technology.

A strong IT system would help satellite hospitals exchange information, offer training and hold consultations with major hospitals, he said.

Some of the hospitals slated for satellite expansion have already drawn up budgets for the work.

The HCM City Oncology Hospital said it needed about VND300 billion (over US$14million) to develop satellite hospitals from now to 2020.

The Gia Dinh People's Hospital and Lam Dong Hospital need a total of VND23.7 billion ($1.1 million) to set up satellite hospitals in the next three years.

Inspectors to target illegal imports of seafood products

The Ministry of Agriculture and Rural Development has called for stricter inspection of fisheries imports after several cases of illegal aquatic products from China were uncovered.

Earlier this month, Ha Noi Market Watch seized nearly half a tonne of frogs, catfish and mullet imported from China. In late April, authorised forces also found trucks transporting aquatic products including sturgeon illegally imported from China and destined for wholesale markets in the city.

Director of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) Viet Nam Do Quang Tung confirmed that CITES Viet Nam had never granted any licenses to import sturgeon to Viet Nam.

Deputy Minister of Agriculture and Rural Development Vu Van Tam said sturgeon, shrimp and other fisheries products were still being illegally imported in Viet Nam despite the efforts of authorised agencies.

The amount of fisheries products illegally imported into the country was in fact far bigger than that seized by authorised agencies, he said.

Nguyen Trong Cu, director of Viet Duc Trade and Investment Co Ltd, which specialises in the trading of sturgeon raised in northern Vinh Phuc Province's Tam Dao District, told Nguoi Lao Dong (The Labourer) newspaper that around 13 tonnes of Chinese sturgeon were imported into Viet Nam each day.

At a meeting on Monday, deputy minister Nguyen Thi Xuan Thu asked relevant agencies to take measures to prevent the illegal import of poultry, sturgeon and frogs via border areas, so as not to affect local producers.

The ministry plans to work with localities and the Ministry of Home Affairs to finalise the inspection system to implement more effective prevention measures.

Chairman of the Viet Nam Tra Fish Association Nguyen Viet Thang said his group had warned consumers to be more careful when buying sturgeon products and proposed that authorised agencies introduce measures to tighten controls over sturgeon imports to protect the interests of domestic consumers and producers.

The measures were also essential to raise competitiveness for local producers by promoting their trademarks both inside and outside the country, he said.

More electricity to national grid

An addition eight new turbines of hydro power plants with a combined capacity of 403 MW are expected to put into operation this month, according to the Electricity of Vietnam (EVN).

Also in May, the National Power Transmission Corporation is set to put on trial operation the first turbine of the Vinh Tan thermal power 2 plant in central Binh Thuan province.

In April, the EVN began construction on a seaport for the Duyen Hai Electricity Centre in the southern province of Tra Vinh .

The EVN has so far this year put into operation 14 projects providing electricity to the national power grid.

Vietnam goods ‘need more support'

The Government should develop policies to protect made-in-Vietnam products from the threat of smuggled and low-quality goods in the domestic market, while enhancing trade promotion for them, experts said at a conference on May 8.

The Ministry of Industry and Trade held the conference to seek measures to bolster the domestic market in line with the campaign "Vietnamese prioritise made-in-Viet Nam goods."

According to Le Ngoc Dao, Deputy Director of the HCM City Department of Industry and Trade, Vietnamese goods were hampered by the prevalence of fake and low-quality products in the market, which hindered local enterprises' production levels.

Dao urged market controls to be tightened to limit the unhealthy competition, while calling for enterprise support to help them expand the sales in the domestic market.

Vu Thi Kim Hanh, President of the Business Association of High-Quality Vietnamese Goods said that help should be given to enterprises, especially small and medium sized firms, to ensure their products appear on supermarket shelves.

SMEs face many difficulties when negotiating with supermarkets to stock their products, while they often lost out to competition from multinational companies, she added.

According to Vu Thi Hau, Deputy Director of the Nhat Nam Joint Stock Company which owns Fivimart supermarket chain, producers of made-in-Vietnam goods should enhance the quality of their products and maintain reasonable prices to ensure competitiveness against imports.

Infrastructure as well as distribution channels must be developed to accelerate the sale of Vietnamese goods, especially in rural areas, according to the Hanoi Department of Industry and Trade.

The department said most markets in the city's rural areas did not ensure sanitation standards for food hygiene and safety, while failing to meet the demands of resident shoppers.

However, Le Thi Nguyet Nga, Deputy Director of the Ministry's Department of Domestic Market, pointed out that constructing the distribution system required huge capital which could become a burden to SMEs when seeking expansion.

Under the draft project to develop the domestic market in line with the "Vietnamese prioritise made-in-Vietnam goods" programme, the Ministry would focus on increasing consumer awareness about made-in-Viet Nam products while improving the distribution system nationwide.

Accordingly, a database of distribution systems would be set up together with store chains for price-stabilised products in all 63 cities and provinces.

After three years of implementation of the programme, locally-made products accounted for 80-90 percent of goods on shelves at supermarkets such as Big C (90 per cent), Sai Gon Co-op (nearly 95 percent) and Vinatex Mart (100 percent), ministry statistics showed.-

Enterprises learn to stand against disasters

Vietnamese enterprises learn how to continue business activities in the post-disaster time from a symposium on Business Continuity Planning (BCP), which opened in Hanoi on May 8.

As a coastal country, Vietnam has suffered sizable economic damage caused by natural disasters and climate change, according to Nguyen Xuan Dieu, Deputy Director of the General Department of Irrigation of the Ministry of Agriculture and Rural Development.

The symposium is a platform for the sharing of experiences in fighting disasters and mitigating disaster consequences, Dieu said.

Participants are to discuss policies to support the making of planning to maintain business operations and help disaster affected businesses continue their production.

The symposium, a joint initiative of Vietnam , Australia , Singapore and Taiwan ( China ), is held within the framework of APEC's Emergency Preparedness Working Group (EPWG), aiming to promote APEC’s linkage 2013.

It is one of APEC’s important activities that Vietnam has hosted in 2013.

Aquafeed plant inaugurated in Vinh Long province

The Netherlands’ De Heus Branch Co. Ltd. on May 8 put into operation an aquafeed plant in the Hoa Phu Industrial Zone, southern Vinh Long province.

Covering an area of 3 hectares, the 7.5 million USD plant has a designed capacity of 100,000 tonnes of aquafeed a year, providing aquafeed for northern provinces and the southeast region and export.

By 2015, the company will inject an additional investment of 5 million USD to raise the plant’s production capacity to 200,000 tonnes per year.

The Hoa Phu Industrial Zone now has four aquaculture feed plants with a total capacity of 5,000 tonnes per month.

BlackBerry rolls out Z10 in Vietnam

BlackBerry officially introduced its touch-based smartphone Z10 in Vietnam on May 7 worth VND15.5 million ($741) and a 18-month warranty.

The new BlackBerry Z10 was the first smartphone based on the re-designed, re-engineered and re-invented BlackBerry 10 platform, giving customers a powerful and unique new mobile computing experience, said Benoit Nalin, BlackBerry country director for Vietnam.

“By launching Z10, we also launched the BlackBerry 10 platform in Vietnam,” he said.

Nalin, who was the Nokia chief here between 2005 and 2009, said Z10 was the fastest and most advanced BlackBerry smartphone.

Israel keen on Da Nang’s IT Park

Israeli Ambassador to Vietnam Meirav Eilon have worked with leaders of the central city of Da Nang to seek investment opportunities for Israeli businesses in the city’s Information Technology Park.

At the meeting in Da Nang on May 7, Chairman of the Da Nang People’s Committee Van Huu Chien briefed the guest on the socio-economic development of the city and the situation of the park, which was established three years ago.

Covering an area of over 1,100 hectares, the park is the third multi-functional high-tech one of the country.

Over half of the park is designated for facilities related to scientific and technological research and development as well as hi-tech human resource training.

Other prioritised industries include biological, new material and energy production, nano-technology and environmental and micro-electronics technologies.

Ambassador Eilon applauded the development of Da Nang. She pledged to do her utmost to get Israeli businesses access to investment opportunities in this promising city.

Shell lays keel for world’s first floating LNG project

In an important step, Shell has laid the keel for Prelude FLNG, the world’s first floating liquefied natural gas (FLNG) project.

When complete, Prelude is expected to be the largest offshore floating facility ever built. The hull will now be assembled in the dry dock, before the turret and the topsides are fitted at Samsung Heavy Industries’ Geoje shipyard in South Korea.

“This is a key milestone in Prelude’s story,” said Rob Kretzers, Shell Executive Vice President Projects. “Innovative thinking and leading edge technology, as well as hard work from those at Shell and our partners, have helped us reach this significant point in construction. Prelude’s size and scale is unprecedented and I look forward to seeing this enormous structure take shape. Shell is pioneering FLNG which has the potential to revolutionise the way natural gas resources are developed”.

FLNG will allow Shell to produce natural gas at sea, turn it into liquefied natural gas and then transfer it directly to the ships that will transport it to customers. It will open up new opportunities for countries looking to develop their gas resources and bring more natural gas to market.

Large steel sections known as “blocks” that will form the hull are being manufactured in the Geoje shipyard, with more than 1,600 already complete. The 93-metre high turret mooring system is under construction in Dubai and will be transported to Geoje in five parts. The turret will run vertically through one end of the facility and will be anchored to the seabed by four groups of mooring lines. It will allow the facility to rotate with the direction of the wind.

Once complete, the 600,000 tonnes facility will be almost half a kilometre in length (488 metres or 1,601 feet), which is longer than four soccer fields, and will displace six times as much water as the largest aircraft carrier. It will be moored and hooked up to the undersea infrastructure, around 475 kilometres north-east of Broome, Western Australia.

Used-car taxes to rise up to $800

The import tax on used cars of nine seats or more will increase on June 20, according to decision recently issued by the Prime Minister.

Accordingly, for cars under 1,000cc, the tax rate will be $5,000 while cars from 1,000 to 1,500cc will be subjected to a rate of $10,000.

The current tax rates are $4,200 and $9,600 respectively, according to Ministry of Finance Circular 28/2013/TT-BTC, which took effect on April 29.

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