Rice exports edge down in 1st half

Viet Nam exported 2.71 million tonnes of rice in the first half at free on board (FOB) value of US$1.132 billion.

The Viet Nam Food Association said this represented a year-on-year decrease of 9.6 per cent in volume and 12.71 per cent in value.

Asian and African countries were the main buyers, with China remaining the largest importer.

VFA chairman Huynh The Nang said the reasons for the fall in exports were not new: abundant supply, the appearance of new exporters, and intense competition.

"There is severe competition in terms of prices," he told Viet Nam News.

"Currently we can not compete with Thailand in exporting 25 per cent broken rice to Africa because our price is higher than that of Thai rice though our rice is of better quality."

But Viet Nam's 5 per cent broken rice and fragrant rice can compete in the market, Nang, who is also general director of the Viet Nam Southern Food Corporation, or Vinafood 2, said.

However, exports are expected to pick up in the second half, he said.

China would continue to buy and Viet Nam has a geographical advantage in selling to that country, but China's import quota policies and changes to cross-border trade policies caused difficulties for Vietnamese exporters, he said.

Malaysia could increase imports in the second half, he said.

Indonesia expects its grain output to rise this year and so will import little or nothing, but experts said it would buy around one million tonnes in the second half.

Nang said there were opportunities to boost exports this year.

The association and its members would focus on promoting exports to mainland China, Hong Kong and Africa, he said, adding exports to Africa were expected to be higher than last year.

Companies have signed contracts to export 4.1 million tonnes this year and so have to ship another 1.389 million tonnes in the remaining months.

Despite facing fierce competition, the sector would meet this year's export target of 7-7.5 million tonnes, Nang said.

Viet Nam produces around 24 million tonnes of rice a year, and more than 16 million tonnes are consumed at home.

Thai bank manager lauds VN's future

Viet Nam's business prospects for the next three to five years are very good, the senior deputy president and general manager of Bangkok Bank said at a meeting on Wednesday to launch Thailand Week from July 9-12.

Tharabodee Serng-Adichaiwit told attendees at the Thailand-Vietnam Business Meeting that the country's advantages included political stability, a young population, and strong government support for foreign direct investment.

An increasing number of enterprises want to set up factories to tap the potential of the Trans Pacific Partnership (TPP), expected to be signed in the near future, and Free Trade Agreements (FTA) between the EU and Viet Nam, as well as the Viet Nam-Korea FTA and Viet Nam-Eurasian Economic Union FTA.

The ASEAN Economic Community, expected to take effect by the end of the year, will also bring more trade opportunities.

Nguyen The Hung, deputy director of the Viet Nam Chamber of Commerce and Industry, said that many leading multinational companies had chosen Viet Nam as a location for their production and high-tech services.

In the first six months of the year, Thailand invested in 13 new projects with registered capital of US$56.3 million.

Bilateral trade between Viet Nam and Thailand reached $5.2 billion in the first six months of the year, an increase of 8 per cent compared to the same period last year.

As of the end of last year, Thailand had invested in more than 370 projects in Viet Nam with total registered capital of $6.6 billion. Thailand is the 10th largest investor out of 103 countries and territories that invest in Viet Nam.

HCM City gave priority to manufacturing of hi-tech products from four industries, including mechanical engineering, chemical, food processing as well as electronics and IT, Hung said.

It encourages investment in nine services, including finance, trade, transportation and logistics, telecommunications, real estate, consultancy, scientific and technology research, healthcare, education and training, and tourism.

At the Thai Trade Fair in the Tan Binh Exhibition and Convention Centre, about 300 domestic and Thai manufacturers, importers, exporters, agents and distributors with 350 booths are displaying products and services, including auto parts, food and beverages, textiles and garments, health and beauty products, and household and kitchenware.

The event is organised by the Department of International Trade Promotion and Ministry of Commerce of the Royal Thai Government.

HAG reneges on share buyback plans

It's normal on the stock market for companies to announce they're going to back their own shares, but it's becoming less common for firms to follow through with their plans.

Property developer Hoang Anh Gia Lai Co (HAG) is the latest company to announce a buyback plan and fail to go through with it.

Yesterday should have been the deadline for HAG to complete its purchase of 10 million shares in the company, but earlier this week, HAG surprised investors with the announcement that it would put off the buyback scheme.

According to its filing to the HCM City Stock Exchange, HAG made the decision to ensure long-term investment capital for its key projects. The company said that bondholders suggested stopping the buyback and using the money to invest in future projects.

In the previous plan, the company registered to buy 10 million HAG shares from June 10 to July 9 with expected prices from VND16,000 (US$0.73) to VND22,000 ($1.01) a share to stabilise the price in the market."

No shares were purchased during this time. But HAG's price increased 6.7 per cent from VND18,000 a share on June 10 to VND19,200 on Monday, before falling again in the last two sessions after the announcement of the stoppage.

However, HAG was within its legal rights. It isn't rare for companies to do this in Viet Nam.

They can register to buy back their shares, but by the deadline they also can say they could not complete the purchase due to unfavourable market condition or unsuitable prices. In March, PV Gas (GAS) said it would buy back 10 million shares with the maximum price of VND100,000 ($4.59) a share. However, it ended up buying just 602,000 shares, or just 6 per cent of its registered amount, even though the price was around VND65,600 – much lower than the expected price at that time. GAS attributed this to "problems in the registration procedure that lead to shortened transaction time."

PetroVietnam Drilling and Wells Service (PVD) announced it would purchase 2 million shares of the company from April 23 to May 23, but it bought about 10 per cent of that. This was not the first time PVD failed to finish their buyback plan.

In order to protect investors' interests, the State Securities Commission is drafting Circular 74, which would add provisions forbidding companies to announce their share buyback plans but then not make transactions within the registration time. The draft also prohibits issuers from declaring expected buying prices in their plans.

Metropole Hanoi rises to number 61 of top 100 hotels

The Sofitel Legend Metropole Hanoi has climbed to 61st spot among the world's top hotels chosen by readers of the US's Travel + Leisure magazine, its highest position ever in one of the world's most prestigious top hotels lists.

Last year the Metropole was in 66th position, and the year before, in 68th.

Only five other hotels in the Far East bested the Metropole: the Peninsula Hotel in Shanghai, Bangkok, Hong Kong, and Tokyo and the Mandarin-Oriental in Hong Kong.

Only one other hotel from Viet Nam made the top 100 – the Park Hyatt in HCM City, which is in 68th place.

Viet Nam made a strong showing in a top-ten list of Travel + Leisure readers' favourite cities in Asia, with Ha Noi claiming seventh spot and HCM City, ninth.

GE and EVN cooperate on developing capabilities and resources

US energy giant GE just announced that it signed a Memorandum of Understanding (MOU) with the Vietnamese state owned company, Vietnam Electricity (EVN).

The MOU calls for cooperation in developing capabilities and resources to help Vietnam meet its growing energy demand. Additionally, the MOU calls for the sharing of technology updates that will help the country expedite the development of its energy infrastructure.

The signing occurred during the official visit of Vietnam’s Communist Party General Secretary Nguyen Phu Trong to the US marking the 20th anniversary of diplomatic normalisation between the US and Vietnam.

In terms of capabilities development under the MOU, GE will continue to assist EVN in the development of  human resources through a variety of  activities, such as leadership training for EVN’s senior leaders, corporate governance best practice sharing, and practical & technical training programmes.

In terms of energy infrastructure development, GE will provide EVN with technology updates and support for power generation products - including high efficiency gas turbines, large-scale steam turbines, and wind turbines.

Furthermore, both parties shall work together to expand and enhance the usage of renewable energy in the country.  

Pham Hong Son, CEO of GE Vietnam and Cambodia said, “Having been in Vietnam over the past two decades, GE is pleased to have this opportunity to be a strategic partner to EVN.  We can use our global experience in power generation in over 170 countries, share expertise and bring training programmes to help enhance EVN’s ability to meet the increasing demands of power growth in Vietnam.”

“The agreement becomes more significant when it is formalised in the context of the 20th celebration of diplomatic relations between the US and Vietnam, affirming GE’s commitment to long-term development through ‘company-to-country’ strategy in Vietnam,” Son added.

“Sharing a common desire to develop Vietnam’s energy infrastructure, EVN and GE will keep working together to serve electricity demand for Vietnamese people and the nation. In the progress of ensuring a sustainable development of the power industry, we highly appreciate GE as an excellent partner to help us achieve the goals,” said Duong Quang Thanh, chairman of EVN.

With more than 700 employees and over $110 million invested, GE is committed to partnering with the Vietnamese government to help meet its energy needs. GE has been cooperating with Vietnamese private and state-owned enterprises on significant power projects, such as, the upgrade of Vietnam’s north-south power transmission line.

GE has also helped in the development of high capacity wind farms, such as, the Bac Lieu wind farm in Mekong Delta and the Tay Nguyen wind farm in the Central Highlands region.

With the vision of becoming a trusted partner of the Vietnamese government and customers while contributing to the growth of Vietnam's economy, GE seeks to maintain its long-term partnerships and to continue building upon its proven domestic capabilities and resources.

Chu Lai EZ inks credit co-operation with Vietinbank

The Chu Lai Open Economic Zone and Viet Nam Bank for Industry and Trade (Vietinbank) have agreed to a five-year credit co-operation to provide loans for projects and investors.

Do Xuan Dien, head of Chu Lai EZ, told Viet Nam News yesterday that the co-operation will assist businesses by providing funds for future development and investment in the zone.

Following the five-year deal, Vietinbank will set up financial transaction and branch offices in the zone, and help boost the promotion of investment for the EZ.

The bank also will build Automatic Teller Machine (ATM) systems at Industrial Parks, as well as the living quarters and service areas in the EZ in the coming years.

The zone, located in the central Quang Nam Province, houses 90 investment projects, with combined registered capital of US$3.1 billion, comprising five industrial parks, a tourism site and an urban precinct with a total area of 25,500ha.

Further, the zone's Ky Ha and Tam Hiep ports have been upgraded to allow access to 20,000 DWT (deadweight tonnage) ships.

Chu Lai EZ has been included as one of five coastal economic zones across the country to receive support from the State budget during the 2013-15 period, with VND790 billion ($38 million) set aside for the zone.

HNX to list two new stocks

Two new stocks with a total 21.4 million shares will be listed on the northern securities market next week, the Ha Noi Stock Exchange (HNX) said.

The two new stocks are Petrovietnam Fertilisers and Chemicals Joint Stock Company (PVFCCo) and the Southern Books and Education Equipment Joint Stock Company (SOBEE), which are listed as PSW and SMN, respectively.

The PVFCCo will get listed on July 14 with a total 17 million shares, worth VND170 billion (US$7.79 million), for an initial market value of VND13,500 per share.

The company, founded in 2004 with VND170 billion in charter capital, produces and imports fertilisers for agricultural production, and provides other services such as transportation, warehouses and leasing offices.

Last year, PVFCCo earned VND3.54 trillion ($162.73 million) in revenue and VND31.9 billion ($1.46 million) in after-tax profits. The company aims to earn VND2.47 trillion ($113.6 million) in annual revenue in 2015 and 2016.

The other company, SOBEE, will issue about 4.4 million shares on HNX on July 17, worth VND44.05 billion ($2.02 million), for an initial market value of VND12,000 per share.

SOBEE was founded five years ago as a member of the education and training ministry's Vietnam Education Publishing House, with a charter capital of VND44 billion ($2.01 million).

The company distributes books and education equipment provided by the Vietnam Education Publishing House, publishes books, and sells other stuff such as souvenirs and toys.

The company has also invested VND15 billion ($688,000) in an office building in HCM City, equal to 30 per cent of the project, which is expected to open this year.

Last year, SOBEE earned VND313.2 billion ($14.36 million) in revenue, a slight increase over its 2013 revenue. The company aims to earn VND315 billion (14.4 million) in revenue and VND6.7 billion ($308,000) in after-tax profit.

Chinese firms want more tra fish imports from Vietnam

China and Hong Kong have overtaken the U.S. to become the biggest importers of Vietnam’s tra fish by volume, according to the Vietnam Pangasius Association.

As reported by the association at a meeting with Mekong Delta localities on Tuesday, Vietnamese enterprises had clinched contracts to export 475,294 tons of tra fish products as of June 27. Of the total volume, China and Hong Kong ordered 74,251 tons, accounting for 15.62%, followed by the EU with 72,269 tons (15.21%), the U.S. with 60,669 tons (12.76%) and ASEAN with 60,595 tons (12.75%).

In terms of products, enterprises mainly exported tra fish fillets with 374,902 tons (78.9%) while value-added products made up only 5,207 tons (1.1%).

At the meeting, localities questioned contract registrations for tra fish exports is maintained or not as many enterprises have proposed lifting the requirement.

Vo Hung Dung, general secretary of the Vietnam Pangasius Association, told the Daily on the sidelines of the meeting that registering export contracts was necessary as it enabled enterprises, localities and management agencies to closely monitor tra fish farming, output, harvest time and demand of enterprises so as to make reasonable adjustments.

Le Chi Binh, vice chairman of the An Giang Fisheries Association, shared the view, saying that it would help localities get useful information about developments in the tra fish industry.

Dung said export contract registration is part of a long-term goal of developing tra fish farming in line with VietGAP (good agricultural practices) or equivalent practices.

“Decree 36 requires tra fish materials to meet VietGAP standards and all farmers and enterprises have to follow this,” Dung said.

Besides, export enterprises should be certified to meet requirements of the National Agro-Forestry-Fisheries Quality Assurance Department (Nafiqad).

Data of the General Department of Customs showed Vietnam had exported over US$616.57 million worth of tra fish as of last May, down 9.6% against last year’s same period. Of which, consignments to the U.S. and the EU were US$134.66 million (up 6.4%) and nearly US$119 million (down 15.6%) respectively.

Vinhomes Royal City holds sales event for foreign home-buyers

Minh Hung Co., New Star Land, and VietHousing Co., the authorised agents of Vinhomes Royal City, are going to open a grand sales event of luxury apartments at Vinhomes Royal City July 11 in Hanoi.

The sales event, to be held at L1-R3, Royal City, 72A Nguyen Trai Street in Thanh Xuan district, proves the companies’ desire to provide a world-class lifestyle to the first foreign homeowners in Vietnam after the government approved regulations allowing foreigners and Vietnamese overseas to own homes in Vietnam on July 1.

At the event, foreign customers will receive consultancy as well as promotions such as a discount of up to 8 per cent of the total apartment value, a VND50 million (US$2,350) gift card at electric and home appliance retailer VinPro and a three day - two night holiday voucher at Vinpearl Resort Phu Quoc/Nha Trang.

All home-buyers at the event also have the option to take out a loan equal to 70% of the property value at a zero per cent interest rate for the first 12-18 months.

Vinhomes Royal City’s apartment size ranges from 54 square metres to over 200 square metres and from one to four bedrooms. The township also has all-in-one facilities including swimming pools, sports complex, lounges, underground shopping mall, schools, and an international clinic as well high-end accommodation services and 24-hour security monitoring.

Situated on a 12-hectare site approximately 5 kilometres southwest of Hanoi’s city centre, Vinhomes Royal City is touted as “a miniature European City right in Hanoi”. It is in close proximity to ring roads 2 and 3 which connects most of the urban areas and the new central business districts of Hanoi.

New regulations effective starting July 1 of this year stipulated that foreigners can trade and inherit houses in addition to buying just for living. Remarkably, they can buy houses right after entering Vietnam.

Before the new regulations became effective, many foreigners and Vietnamese overseas, including those who have previously been living for tens of years in big cities such as Hanoi and Ho Chi Minh City, had no choice but to spend around VND60 million (US$2,800) and even higher on rent every month.

For more information on the event and the exclusive offers for the first non-Vietnamese customers at Vinhomes Royal City, call 1800 1086 or visit vinhomes.vn .

Electronics industry booming with bright prospects, but changes needed

Vietnam was one of the fastest growing economies in Asia in 2014, and manufacturing has been the key driver, much of which can be attributed to the electronic industry, according to a recent report by Singapore-based DBS Bank Ltd.

The electronics cluster has grown rapidly in recent years, which has resulted in an expansion of 78% per year in exports for the past four years to reach US$35 billion in 2014, DBS Bank said in “Sparking Life into the Vietnamese Electronics Sector,” released on July 2.

By the end of last year, electronics shipments by Vietnam had accounted for 23% of all exports, up from only five percent four years earlier.

Meanwhile, the industry has become a key driver of the economy, making up 23.4% of GDP last year, up from just 5.2% in 2010.

Vietnam’s electronics industry is quickly catching up with the regional powerhouses after a boom began post-2010 due to a confluence of factors, including the structural shift in regional electronics supply chains, the report said.

The Southeast Asian country has captured market share from many of its regional peers following a process seen repeatedly in Asia: earlier players saw income and wages rise, opening the door for lower cost producers.

Faced with weak global demand and persistent cost pressure, many manufacturers were searching for cheaper locations from which to produce.

In addition, competition was intensifying, making the need to restructure the supply chain even more compelling.

Vietnam’s pro-foreign direct investment policies, a weaker currency and competitive labor force all added more development fuel to the sector in subsequent years.

High-tech electronics producers are establishing a presence in Vietnam, evidenced by Intel, LG, Panasonic and Microsoft being among the global tech giants to have expanded in the country in recent years, marking a shift away from China.

In addition, beyond the cost advantage, geography also plays a role.

Given Vietnam’s proximity to China, it is easier for the Southeast Asian country to integrate into existing supply chains.

Korean electronics giant Samsung announced late last year an investment of US$3 billion in a new smartphone factory, alongside its existing US$3 billion plant, located in the north of the country, which is close to China.

Moreover, a growing middle class supporting domestic demand has further strengthened Vietnam’s overall attractiveness for global manufacturers.

Among the earnings of $1 trillion in export revenue in 2014 of eight main Asian electronics exporters, including China, Taiwan, the Republic of Korea, Malaysia, Thailand, Singapore, the Philippine and Vietnam, the last country accounted for 3.5% of the total, up from a mere 0.4% in 2010.

Vietnam has leapfrogged the Philippines and Thailand, and will likely overtake Singapore to become the fifth largest electronics exporter in the region over the next two years, and this trend is likely to persist.

After Samsung submitted a written proposal to Ho Chi Minh City authorities seeking support in finding capable domestic suppliers in June, the authorities immediately reached out, only to find that very few local firms meet the demands of the Republic of Korean electronics giant, government website chinhphu.vn reported.

The proposal was sent just a few days after the tech behemoth started constructing the Samsung Electronics Complex, with a total investment of US$1.4 billion, at the Saigon Hi-Tech Park (SHTP) in District 9 in late May.

Samsung said it wanted to find domestic suppliers to focus on certain sectors such as mechanical engineering, electricity, printed circuit board assembly, auxiliary materials and raw materials.

Nguyen Phuong Dong, deputy director of the Ho Chi Minh City Department of Industry and Trade, after receiving the written proposal by Samsung, organized a meeting with potential suppliers in the city and formed a list of companies with the ability to provide on-demand products for the tech firm to consider.

However, Le Bich Loan, deputy head of the SHTP Management Board, said after several rounds of work, more than 100 companies was shortlisted by one-third.

And then the number of candidates who passed the prequalification round of Samsung was scaled down to only 15 companies, at which Samsung will conduct field surveys for a final decision.

Bright prospects, but drastic changes necessary

In the long term, as the government expects electronics exports to reach US$40 billion by 2017, a modest growth rate of five percent per year would help achieve the target.

Nonetheless, the longer-term sustainability of the industry will depend on whether Vietnam can raise productivity and move up the value chain.

The influx of foreign electronics manufacturers has enabled the transfer of technology and skills.

However, the country needs to develop its own talent and supplier pool to sustain the trend.

Otherwise, electronics will only migrate to other cheaper locations, like Indonesia, Cambodia, Laos and Myanmar, which can all offer competitive alternatives to global manufacturers once wages start to rise in Vietnam.

Binh Duong authorities talk with Japanese firms

Authorities from the southern province of Binh Duong held a dialogue with Japanese businesses on July 10.

France’s second cheese factory commences in Binh Duong Binh Duong gives thumbs up for US$274m textile plant Binh Duong records US$1.1 billion trade surplus in two quarters Japanese companies gave opinions on local social welfare, tax, and import-export policies as well as investment procedures and administrative formalities.

Officials from these sectors eased business concerns over e-tax payments, second-hand equipment imports, unemployment compensation and expiration dates for Japanese imported beef.

Japanese Consul General to Ho Chi Minh City Satoshi Nakajima welcomed the dialogue for enabling the two sides to give feedback on law enforcement and discuss solutions to mitigate difficulties for businesses.

Chairman of the provincial People’s Committee Tran Van Nam said similar events will be hosted for foreign enterprises, including those from Japan.

He said the locality will enact prompt measures to support businesses.

He added that the Japanese business association is expected to continue bridging local leaders with businesses to facilitate production.

Binh Duong has hosted 231 Japanese investment projects worth US$4.86 billion, ranking second nationwide in terms of Japanese investment capital after central Thanh Hoa province with US$9.68 billion.

In the first half of this year, Japan ran eight investment projects in Binh Duong with a total capital of US$82.2 million.

Auditors stay tough on brewer Sabeco amid $181mln tax evasion scandal

Vietnam's largest brewer Sabeco will have to pay over VND408 billion (US$18.68 million) in luxury taxes that state auditors said it tried to evade in 2013 in a long-lasting price manipulation scheme.

The state audit office told the press on Friday that the scheme was made possible by legal loopholes and that it would not go easy on the violation.

Early this week, state auditors submitted a report to the Ministry of Finance, accusing Saigon Beer Alcohol Beverage JSC, as the company is officially known, of rigging prices within its network of 11 distributors to pay less tax.

It said under Vietnamese law, luxury tax is calculated based on the price at which a producer sells its products to distributors. The tax rate was 50 percent for beer in 2013.

To take advantage of this rule, Sabeco sold its products to Sabeco Trading Co. Ltd, which it fully owns, at low prices.

This company then sold the products, once again at low prices, to 10 other "regional" distributors, in which Sabeco has at least a 90 percent stake.

The scheme allowed Sabeco to pay only a small amount of luxury tax, before increasing prices when selling beer to retailers, according to the office.

Speaking at the press conference, Truong Thi Viet Huong, who led the team that audited Sabeco, said the brewer's trick was similar to transfer pricing.

It was enabled by a loophole in an ordinance on luxury tax which does not specifically define whether or not the distributors have to be financially independent from the producer, she said.

However, the finance ministry is now working on adjusting the rule, so it will be only applicable, when the producer does not have any shares in the distributor, according to Huong.

In the case of Sabeco, state audit recommended luxury tax be re-calculated on the price at which its regional distributors sell to retailers, she said.

The brewer reportedly will have to pay a total of VND4 trillion ($181 million) for 2008-14, if the proposal is accepted.

But the audit office asked the company to pay its 2013 arrears first, saying since the total amount is huge, Sabeco would need some time to pay the whole sum off.

Huong also responded to Sabeco's claim that many other companies have operated similar systems of distributions, saying that her office will possibly check on those businesses.

Quang Ninh expects 12 percent H2 growth

Northeastern Quang Ninh province expects a GDP growth of 11-12 percent in the second half of the year, it was reported at a recent business conference.

Nguyen Van Doc, Chairman of the provincial People's Council, praised the contribution of businesses to the province's economic development in the first half of the year. The province's GDP in the six month period reached 8.9 percent, taking second place among localities in the key economic northern region.

Doc said this contribution to the State budget was relatively high, especially as revenues from local production accounted for 56 percent of the total.

"These results were thanks to the important contribution of enterprises," he said, adding that Quang Ninh province would continue supporting companies, as well act to quickly assist them in any difficulties they confront.

Statistics from the provincial Department of Planning and Investment showed that businesses in the province have increased production due to the Government's supporting policies, as well as their own efforts.

In the first half of the year, State-owned enterprises had the highest contribution to the State budget at 4.2 trillion VND (194.4 million USD), posting a 2 percent year-on-year increase.

Further, increases in foreign direct invested enterprises was 15 percent lower than the same period last year, reaching 474 billion VND (21.9 million USD), while non-governmental businesses contributed 808 billion VND (37.4 million USD), which was 10 percent higher than the corresponding period last year.

Nguyen Van Minh, the department's director, said the province had 516 newly established businesses with total registered capital of 6.5 trillion VND (300.9 million VND), representing 40 percent and 187 percent year-on-year increases, in terms of business numbers and capital, respectively.

It was expected that 5,660 people would be employed by the newly established firms, an increase of 64 percent over the same period last year. More than 160 companies reported operations that were 1.7 percent higher than last year.

However, there were 66 companies in the midst of dissolving, while another 215 firms halted operations.

He said the province received 64 proposals from businesses as of July 7. Of these, 22 proposals came from the coal industry and 42 ones from other economic sectors.

The proposals were related to policies on land, natural resource management, investment, administrative procedures, transport management and minerals. The province answered the proposals of each unit.

Neerav Kumar Gupta, General Director of the Tien Phong Industrial Zone Company, which was granted licence to build the South Tien Phong Port in Quang Yen town, said they had faced difficulties due to transport, electricity and water infrastructure. He expected that the province would have solutions to create favourable conditions for their operation.

The province's leader said they had studied solutions to meet their commitments relating to their support of the infrastructure.

A representative from the Mong Duong Thermopower Plant 2 said they had received much attention from the province regarding land clearance, licencing and infrastructure development. They had also striven to ensure issues of progress and labour safety.

He proposed that the province should continue to improve the provincial competitiveness index (PCI), training high quality employees.

In addition, they expected to received preferential assistance in building the Mong Duong Thermopower Plant 3.

Other businesses also hailed the province's efforts in helping them overcome difficulties.

Works remains for exports to Australia

As Vietnamese exports to Australia rapidly expand, domestic exporters are being recommended to focus on long-term benefits by seeking trademark protection overseas and adding more value to their goods and services.

Vietnamese lychees much sought after in Australia Vietnam, Australia boost mining cooperation HCM City facilitates Australian investment Trade between Vietnam and Australia has surged 46% over the past five years from US$4.14 billion in 2010 to US$6.04 billion in 2014.

Last year, Vietnam earned US$3.99 billion from exports to Australia, up 14% year on year and 48% from 2010, owing to the ASEAN-Australia-New Zealand Free Trade Agreement (FTA) effective since 2010, in which 96% of ASEAN goods exports to Australia are tariff-free.

According to the Vietnam Trade Office in Australia, Australia is a very promising market which purchases around US$80 billion of goods and services overseas annually, presenting many untapped opportunities for Vietnamese exporters.

Statistics by the General Department of Vietnam Customs revealed that Vietnam has seen remarkably high growth rates in farm produce and seafood exports to Australia last year, such as pepper (up 52.5%), seafood (20.7%) and cashew nuts (12.6%) which made up 96% of Australian cashew imports.

More than 40 tonnes of Vietnamese lychee have been shipped to Australia this year, mostly Sydney, Melbourne and Brisbane, paving the way for other domestic fresh fruits to make inroads into Australia, a big buyer with strict quarantine regulations.

The trade office has worked with the Australian chapter of the Vietnam Business Association to host Vietnamese Lychee Day in Australia to promote the fruit locally and give away cookbooks with ideas for lychee dishes and desserts.

It has also published a list of 1,586 export items with their market share in Australia for domestic exporters.

The Vietnam Trade Office recommended local firms focus on developing brand names and adding value to their products and services.

The firms should apply for trademark registrations in import countries to protect their products and services against illegal replicas by competitors and cut middlemen from the exporting process, it said.

Binh Phuoc fosters economic ties with Cambodian provinces

A meeting was held between senior officials of the southern province of Binh Phuoc and the Cambodian provinces of Kratie, Mondulkiri and Tabong Khmum on July 10 to review their cooperation in the past year.

Chairman of Binh Phuoc’s provincial People’s Committee stated the meeting would serve as a catalyst for boosting friendship and trade relations between the two sides.

Localities needed to address the challenges faced by border communities in order to maintain social order and security, as well as promoting friendship.

Speaking at the meeting, Kratie province’s Deputy Governor Hoeu Sidem spoke highly of the contributions made by Vietnamese enterprises, including Binh Phuoc businesses, to economic development in the Cambodian province in recent years.

He expressed his hope that Binh Phuoc province would create favourable conditions for Cambodian businesses to visit and learn from the experience of Binh Phuoc businesses.

Meanwhile, the Deputy Governor of Mondulkiri province, Chanso Chantha, appreciated the sound cooperation with the Vietnamese province on constructing the border gate and roads, as well as preventing child trafficking and trade infringements.

On his part, Tabong Khmum’s Deputy Governor Ly Leng stated that he expected trade between the two provinces to increase.

Since 2014, Binh Phuoc province has signed Memoranda of Understanding with Cambodia’s neighbouring provinces on the economy, trade and agricultural development. The province is currently implementing three investment projects in Cambodia.

Last year, Binh Phuoc province transferred 20,000 cashew seeds and 40,000 transplanted cashew seedlings to Kratie province’s agricultural sector. In addition, the Vietnamese province also provided technical assistance to agricultural officials and farmers in Kratie.

Furthermore, Binh Phuoc province invested 12 billion VND (558,000 USD in the construction of Song Mang bridge, which links the province’s Hoang Dieu border gate and La Pa Khe border gate in Mondulkiri province.-

National Audit Report for the 2014 fiscal year announced

The National Audit Report for the 2014 fiscal year was announced in Hanoi on July 11 by the State Audit of Vietnam (SAV).

The national audit report examined records from 14 ministries and central agencies, 35 major cities and provinces, and 40 State-owned enterprises and credit institutions.

The SAV reported that the State Budget collection in 2013 was over 1,084 trillion VND (49.7 billion USD), with State budget spending of more than 1,277 trillion VND (58.5 billion USD).

The overspending made up 6.6 percent of gross domestic production, about 1.3 percent higher than the rate approved by the National Assembly.

The public debt in 2013 was over 1,954 trillion VND (89.5 billion USD), accounting for 54.5 percent of GDP, while the public debt in 2012 made up 55.7 percent of GDP.

Dao Van Dung, head of the SAV's General Affairs Department, said that State-owned enterprises submitted incorrect reports regarding revenues and taxable costs, which meant they paid less VAT and corporate income tax than they should have.

They had been asked to pay an extra 3.28 trillion VND (150.5 million USD) to the State Budget, he said.

The reported said the SAV also audited the State Bank of Vietnam. The bank was said to have operated flexibly and efficiently used monetary policy to contribute to macro-economic objectives under the socio-economic development plan in 2013.

However, banking activities still faced challenges such as credit quality and the ratio of bad debt.

Vietnam's Dong A Bank may sell 100 mln shares to Kinh Do

Vietnam's unlisted Dong A Bank is seeking shareholders' approval to sell 100 million shares in a new issue to confectionary firm Kinh Do Corp and use proceeds to boost finance, the bank said.

If approved at a meeting on July 21, the VND1 trillion (US$46 million) proceeds will be used to raise the Ho Chi Minh City-based bank's registered capital by 20 percent to 6 trillion dong, Chief Executive Officer Tran Phuong Binh said in a report released to shareholders.

"Kinh Do Corp is an investor who can meet all legal requirements to become Dong A Bank's strategic investor and the company is committed to buying all the shares" in the issue, Binh said in the report posted on the bank's web site. (dongabank.com.vn)

Officials at Kinh Do Corp, based in Ho Chi Minh City, were not immediately available for comment.

Kinh Do shares ended up 3.85 percent at 45,800 dong on Friday.

Dong A Bank is the 16th largest among Vietnam's 33 partly private lenders by assets. The bank said its net profit last year plunged 92 percent from 2013 to 26.98 billion dong ($1.24 million) following lower revenues.

Ho Chi Minh City sees declining export values

Ho Chi Minh City posted a six-month export revenue of nearly 14.6 trillion USD, an annual decrease of 6.3 percent.

According to Vo Van Luan, Chief of the People’s Committee Office, mid-year export turnover of the agro-forestry-fisheries sector – accounting for 20 percent of the total export revenue – slid 9.6 percent from 2014, leading to the overall reduction.

During the period, stiff competition from Thailand and India as well as lowered demand from major importers Indonesia and the Philippines led to only 339,000 tonnes of rice shipped abroad, an annual drop of 73 percent.

The plunging rice trade is likely to be improved by the end of 2015 thanks to global market recovery as a result of positive impacts of government export-stimulation policies and several free trade agreements, said Nguyen Anh Duong, an expert from the Central Institute for Economics Management (CIEM).

To fulfil the 2015 export target, local business communities and associations ought to enhance promotion programmes and place additional emphasis on connectivity among domestic production, material import and market expansion, Duong noted.

Exporters across the southern hub need to focus on boosting price competitiveness, quality assurance and production capacity.

Pho Nam Phuong, Head of the Ho Chi Minh Investment and Trade Promotion Centre (ITPC), revealed that her agency is working to strengthen partnership in traditional markets like the US and EU and in potential markets such as Russia, Indonesia and India.

The ITPC is also making efforts to forge business links in Africa and western and southern Asia.

Moves to enhance inspection of business climate improvements

Concrete steps to better the joint inspection of improvements to the business environment and tax and customs competitiveness was outlined at a recent meeting in Hanoi.

Participants to the July 8 event were assistant teams and the eight-member Steering Committee of the joint inspection programme, headed by Chairman of the Vietnam Chamber of Commerce and Industry Vu Tien Loc and Vice President of the Vietnam Fatherland Front Nguyen Van Pha.

They agreed that the joint inspection programme will be carried out in three groups of activities in 2015.

In group one, surveys on 200 business associations and sub-unions of the Vietnam Cooperatives Union nationwide will be conducted. Group two will do interviews at border gates and tax and customs agencies in key economic regions and in major fields such as seafood, garment-textile, steel, footwear, food and coffee.

Group three is responsible for reporting the survey outcomes and proposing solutions to improve tax and customs competitiveness.

Administrative reforms related to amending unnecessary formalities and reducing time and cost for businesses in tax payment and goods customs clearance will be under examination.

The coordination plan will also collect proposals and feedback from businesses on the implementation of Government Resolution 19/2015/NQ-CP on major solutions to improve the national business climate and competitiveness between 2015 and 2016.

Shrimp exports decline over falling demand

The shrimp export revenue decreased during the first half of 2015 as major importers are showing a lack of appetite.

Vietnam only shipped 1.3 billion USD worth of shrimp – a key export commodity – during the period, plunging about 28 percent from a year earlier, according to Deputy General Secretary of the Vietnam Association of Seafood Exporters and Producers Nguyen Hoai Nam.

Such a decline contributed to a 16 percent reduction in the six-month aquacultural exports, which stood at around 3 billion USD.

Giant US and European buyers have traditionally had higher demand for shrimp around June, but this year has proved the opposite.

Vietnam earned just 48 million USD from shrimp exported to the US in May, sliding 46 percent from 2014. Similar drops were also recorded in ASEAN, Japanese and Australian markets.

European clients have been preferring shrimp from America for its preferential tariffs.

Nam also pointed to a downward trend in prices and a surge in the global shrimp supply as a remedy for early mortality syndrome, a disease that kills shrimp before it reaches marketable sizes, was implemented by a number of active exporters worldwide.

These factors have led to difficulties in obtaining contracts, he said, saying meeting the year’s target of 3.9 billion USD in shrimp shipments, matching that of 2014, would be a success.

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