Vietnam joins Summer Davos forum 2014

A Vietnamese delegation led by Deputy Minister of Science and Technology Pham Cong Tac took part in the 2014 Summer Davos Forum, which opened in China’s northern city of Tianjin on September 10.

Taking place in the context of global economic recovery, this year’s forum, themed “Creating value through innovation”, has drawn more than 1,600 politicians, scholars, researchers and businesspeople from 90 countries and territories worldwide.

Also known as the Annual Meeting of the New Champions 2014, the event aims to look for new industries and technologies to ensure the sustainable recovery of the world economy.

Participants will discuss scientific and technological innovations in five major fields including data analysis, Nano technology, man-made intelligence, nerve science and non-traditional energy as well as their impacts on economy and society.

They will also focus on a number of hot issues such as social stability, innovation and industry, science and technology, and creativeness and culture during about 140 seminars.

According to Tac, via this forum, the Vietnamese delegation wants to seek solutions for the national economy as it is now facing big changes and challenges.

The Summer Davos Forum has been held in China annually since 2007.

Vietnam issues rules for securities lending

The Vietnam Securities Depository (VSD) recently announced the list of securities to be used as collateral to implement securities lending regulations in its Decision No 111/QD-VSD.

Accordingly, exactly 223 codes listed on two national stock exchanges were qualified. This includes 60 codes on the HNX30 and VN30 packages, made up of the top stocks by capitalisation and liquidity, and others based on liquidity. It also includes Government bonds and Government-guaranteed bonds listed on Hanoi Stock Exchange.

The VSD issued its decision on the securities lending and borrowing system on August 19, in preparation for the operation of exchange-traded funds in Vietnam and as support for securities trading in case of transaction corrections in which a temporary shortage of securities for payment would occur.

Deduction rates of asset value, the rate to be deducted from the prices of securities used as collateral, was set at five percent on Government bonds and Government-guaranteed bonds, 30 percent on securities in the VN30 and HNX30 packages and 40 percent on others.

VSD said the reduction rates aimed to prevent risks and ensure the rights of lenders, since a number of stocks might be priced beyond their true value.

The lending interest rates will be subject to agreements between borrowers and lenders but should not exceed 120 percent of the rate regulated by the State Bank of Vietnam.

Business establishment procedures to be accelerated

Prime Minister Nguyen Tan Dung has given instructions to speed up the reform of administrative procedures for individuals and business operations.

He made this request during a working session on the administrative procedure reform with officials from the Ministry of Planning and Investment in Hanoi on September 9, with a particular focus on processes relating to the establishment and dissolution of businesses, and the implementation of investments.

The PM stated it was the Government’s key task to improve the institutional framework and push the administrative reform, adding that ministries and localities needed to continue to review the measures they implemented to attract investments and increase competitiveness.

According to the leader, improvements to the business environment and an increase in national competitiveness contributed substantially to Vietnam ’s rapid and sustainable development, as well as industrialisation and modernisation.

A one-stop-shop approach to administrative procedures has shortened processing time significantly, Dung said, calling for an acceleration of implementation efforts.

PM Dung proposed ministries and sectors put forth specific measures to perfect the legal framework for investments and businesses, with a particular focus on reforming administrative procedures; removing barriers to investment; reforming market access procedures; implementing investment projects; and facilitating business operations in all areas of the economy.

The ministry reported it had been working with the Ministry of Finance and the Ministry of Public Security since 2007 to implement the one-stop-shop approach to business registration, tax registration and other procedures relating to the establishment of new businesses.

In 2010, the national business registration system was established, aiming to fundamentally reform the business landscape of Vietnam.

Foreign banks offer syndicated loan to VietinBank

The Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) in Hanoi on September 10 inked an agreement to borrow US$50 million from four foreign partners.

The four lenders are Cathay United Bank, Mega International Commercial Bank, Far East National Bank and Hua Nan Commercial Bank.

The syndicated loan will enable VietinBank to increase its capital capacity for national economic development.

VietinBank General Director Le Duc Tho highly said the cooperation between Vietnamese bank and four foreign banks will give a boost to the development of his bank and the country’s financial and banking market alike.

Cathay United Bank is a wholly owned subsidiary of Cathay Financial Holding Company, the largest financial holding company in Taiwan.

Techcombank receives 10 international awards

The Vietnam Technological and Commercial Joint Stock Bank ( Techcombank) on September 9 received 10 awards presented by four prestigious international magazines in the finance-banking sector, the bank said in a press release the same day.

The Global Banking & Finance Review, a globally leading online portal in banking and finance of the UK, recognized Techcombank as the “Best Internet Bank Vietnam 2014”, “Best Retail Bank Vietnam 2014”, “Best Customer Service Bank 2014” and “Best Commercial Bank Vietnam 2014”.

At the same time, the Asian Banking and Finance Magazine gave Techcombank three awards - Vietnam Domestic Retail Bank of the year; Vietnam Domestic Foreign Exchange Bank of the year, and Domestic Trade Finance Bank of the year.

The Finance Asia and Corporate Treasurer Magazine named Techcombank the Best Commercial Bank in Vietnam, the Best Cash Management Bank in Vietnam and the Best Trade Finance Bank in Vietnam.

The awards are a recognition of Techcombank’s constant efforts to modernise the banking system, and diversify its products/services.

The bank, which marks its 21 st anniversary this year, has built a wide network of over 300 branches and more than 2,000 POS nationwide. Its assets are estimated at 171 trillion VND (8.14 billion USD).

ACMECS ministerial retreat on tourism cooperation held in Vietnam

Senior officials from Vietnam, Cambodia, Laos, Thailand and Myanmar gathered for a Ministerial Retreat Meeting on the Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy (ACMECS) Tourism Cooperation in Ho Chi Minh City on September 10.

The tourism ministers of Cambodia, Laos and Vietnam, Myanmar’s Deputy Minister of Tourism and the Thai Ambassador to Vietnam participated in the retreat, together with leaders of the four Mekong city destinations of Ho Chi Minh City in Vietnam, Phnom Penh in Cambodia, Yangon in Myanmar and Vientiane in Laos.

The officials agreed that in the 12 months of implementing the ACMECS joint statement on tourism cooperation, the five countries’ national tourist offices had intensified their collaboration and supported each other at international tourism fairs.

They also carried out numerous measures to facilitate trans-border tourist crossings. Cambodia and Thailand provided joint visas to tourists coming from other ACMECS countries, while low-cost carriers launched new flights to destinations in the region.

Delegates stressed the need to further boost cooperation and work towards a joint ACMECS visa zone under the slogan “Five nations - One destination”.

Building materials industry under realignment

The domestic building materials market is expected to be knocked into shape following the recent governmental approval of the sector’s master plan until 2020 with a vision towards 2030, the Vietnam Investment Review (VIR) reported.

The prime ministerial Decision 1469/QD-TTg to greenlight Vietnam’s building material development has ordered limiting investment into certain materials that are currently in oversupply.

Accordingly, the Prime Minister has suggested stopping investment in building new ceramic tile production units from now until 2015. In the period from 2016 to 2020, this line of investment will get the go-ahead to reach the total designed capacity of 570 million square metres of ceramic tiles per year.

Statistics from the Ministry of Construction (MoC) showed that the total designed capacity of tiling materials should reach 450 million square metres per year in 2015, increasing to 570 million square metres per year in 2020.

In respect of natural masonry veneers, the Government has set the target for the total designed capacity of 15 million square metres per year in 2015, doubling to 30 million square metres per year by 2020. It expects to achieve these targets through production expansion or new investments.

The Prime Minister also demands using state-of-the art technology in the extraction process with minimal usage of explosives to limit environmental damage. Masonry veneer businesses are also encouraged to cooperate with calcium carbonate production units to reduce waste and alleviate environmental pollution.

Le Van Toi, Head of the MoC’s Building Materials Department told VIR that of the major building materials only cement had a detailed development plan based on actual market needs while most others did not, leading to the oversupply of many building materials in the market.

“In past years, building material units have used less-than-modern technologies and equipment which are high on fuel consumption and harmful to the environment. As well as that, the management of natural resources has been lax,” Toiwas quoted as saying, adding that the enactment of the new decision would help tackle these problems.

With regards to clay bricks, the Prime Minister has encouraged the production of large hollow clay bricks using modern technologies. Centrally-governed localities are required to work on a roadmap to gradually discontinue the use of furnaces that employ obsolete technologies.

The approved planning also forecasts that Vietnam’s total cement consumption will be 93 million tonnes by 2020. In the next period from 2020-2030, cement investment must follow the Prime Minister-approved cement development plan and the plan on exploration, extraction and use of minerals for the production of building materials.

Minister says ‘golden air route’ meant to benefit customers

The straight-line air route linking Hanoi and HCMC over the airspace of Laos and Cambodia is designed to benefit passengers thanks to lower airfares, but safety must be prioritized first, said Minister of Transport Dinh La Thang.

The minister told the “Citizens Ask, Ministers Answer” program aired on VTV on Sunday evening that aviation safety will always take the first priority over the air route. And customers would benefit from the lower airfares as airlines could reduce operating costs.

The golden air route has been one of the solutions to improving efficiency of transport operation that the ministry has deployed, Thang explained. The air route had been studied for years but the ministry delayed it due to unfavorable conditions.

The plan is now reconsidered after Vietnam has clinched aviation agreements with four neighboring countries and enhanced its ability to control air traffic. In addition, infrastructure of Noi Bai and Tan Son Nhat airports will satisfy requirements for implementing the straight-line flight.

Earlier, the Civil Aviation Authority of Vietnam (CAAV) said flight simulations showed that the flight straight from HCMC to Hanoi over the airspace of Laos and Cambodia could help reduce the flying time by five minutes, cut the distance by 85 kilometers and save on 190 kilos of fuel.

In a related development, CAAV has asked the Japan International Cooperation Agency (JICA) to help reevaluate the test results submitted by national carrier Vietnam Airlines.

As planned, CAAV will send an official report on the final results of the straight-line air route over the airspace of Laos and Cambodia to the minister of transport Wednesday.

Vung Ro oil refinery to turn out first products in 2020

The Vung Ro oil refinery project gets off the ground on September 9 in the central province of Phu Yen with the first products to roll off the line in 2020, according to the provincial Department of Industry and Trade.

The nearly US$3.2-billion petrochemical project includes an oil refinery covering 404 hectares and Bai Coc port occupying 134 hectares in Hoa Tam Industrial Zone in Dong Hoa District.

The refinery will have total annual output of eight million tons of products, including liquefied petroleum gas (LPG), gasoline, jet fuel, diesel and heavy industrial oil, benzene and polypropylene.

Once in operation, the facility will contribute more than US$110 million to the State budget and create 1,300 jobs for local people.

As previously covered by the Daily, the investors of the Vung Ro oil refinery project are the UK’s Technostar Management Ltd. and Russia’s Telloil Company.

Work on the big-ticket project starts after 10 years of negotiations between foreign investors and the provincial government as there were issues relating to its production capacity which was adjusted from one million tons per year to four million tons and then eight million tons at present.

The investors of the oil refinery project will apply technology and technical design of the United States and use crude oil from Russia and the Middle East.

Prime Minister Nguyen Tan Dung has approved in principle applying a 0% export tax to its refined products and the same incentives granted for other oil refinery projects in terms of distribution of refined oil products, taxes on foreign contractors and use of natural resources.

Vung Ro is a deep bay on the foot of Ca Pass in Hoa Tam and Hoa Xuan Nam communes of Dong Hoa District in Phu Yen Province. The location provides a solid foundation for construction of an oil refinery and is ideal for a deep seaport.

Duc Long Gia Lai unveils VND11-trillion cow breeding project

Duc Long Gia Lai Joint Stock Company has announced a cow breeding project worth up to VND11 trillion (some US$520 million).

The company will carry out the project in collaboration with Vinamilk and Sweden’s Delaval Corporation to raise 80,000 dairy cows and 45,000 cows as well as develop infrastructure facilities, grasslands, barns, breeders and human resources.

Duc Long Gia Lai will buy 80,000 dairy cows of the Holstein Friesian breed from Australia and the United States and from Vinamilk. Meanwhile, the company will import cows from Australia.

The project will be deployed in the Central Highlands provinces of Dak Nong, Daklak and Gia Lai in the initial stage, and the company calculated 7,500-8,000 hectares will be needed for the cattle.

Bui Phap, chairman of Duc Long Gia Lai, said in addition to its own land, the company has got approval from the three provinces to survey more than 20,000 hectares to select the areas for raising the cattle.

Phap said Duc Long Gia Lai has worked with barn solution provider Delaval Corporation to find appropriate areas for the project. The company has clinched an agreement with Vinalmilk for breeder purchase, breeding technology, human resource development and product consumption.

Duc Long Gia Lai will import the first herd of cows in the first quarter of 2015 and dairy cows in the second quarter of the same year, according to Phap.

In June this year, Hoang Anh Gia Lai Joint Stock Company signed agreements with Nutifood and Vissan for executing a cow breeding project worth VND11-12 trillion.

Promoting cooperation in Development Triangle Area

Experts from Cambodia, Vietnam and Laos (CVL) gathered in Siem Reap on September 9, seeking ways to promote trade, investment and tourism in the three countries of the Development Triangle Area (DTA).

The Development Triangle Area holds a strategic position in economic, trade and tourism cooperation among the three countries. It aims to pool more investment resources to spur economic development of 13 provinces in the region and accelerate economic cooperation in the three countries.

Vietnam’s Ministry of Planning and Investment reported at the conference that Vietnam has to date implemented 248 projects totalling US$4.7 billion in Laos, including 61 projects valued at US$2.3 billion in the DTA. These projects are mainly in agro-forestry, mining, manufacturing and processing industry, electric generation, construction, hotel, banking and finance.

Vietnam has also invested in 143 projects in Cambodia with a combined capitalisation of more than US$3.2 billion, more than a quarter of which in the DTA worth nearly US$2.2 billion. Most of them are in cash crop planting, construction, mining and hydro-electric power generation.

All Vietnamese invested projects have helped promote local economic development, increase State Budget revenues, generate jobs and improve infrastructure.

Leng Rithy, a representative of the Vietnam Rubber Group (VRG) in Cambodia, appreciated Vietnamese businesses’ rubber plantations, helping the Cambodian Government overcome economic downturn and create steady jobs for local people.

Participants worked out solutions for completing legislation and improving infrastructure to attract more investment into the DTA.

FPT wins US$6.6 mln contract in Bangladesh

FPT IS, an information system affiliate of the Corporation for Financing and Promoting Technology (FPT), has been awarded a US$6.6 million contract to supply and implement an integrated income tax management system for Bangladesh.

A FPT IS spokesperson announced the project is scheduled to be completed over 16 months, with funding provided by the Asian Development Bank (ADB).

Upon completion, it is expected to reduce time and expense for 1,200 tax officials and 3 million tax payers in carrying out income tax transactions via the Internet.

It should also help enhance management capacity via a modern information technology system for Bangladesh tax authority.

FPT IS Director Pham Minh Tuan said Bangladesh is one of the key markets in the company’s global strategy. The Bangladesh deal increased its contracts overseas in the first eight months of this year to 13 with a combined value of US$25 million.

Rubber exports take a nosedive

Vietnamese rubber exports are forecast at 1 million tonnes with total export value of US$1.8-2 billion for 2014, down 10% in volume and 25-30% in value compared to last year.

The Agro-Forestry Processing and Salt Industry Department (AFPSID) attributes the decline to low consumption and an excess supply in the world market.

AFPSID Director Nguyen Trong Thua predicts rubber prices will continue to drop in the long-run due to a slow recovery of the global rubber market.

Rubber prices in Vietnam are often lower than that in several regional countries like Thailand, Indonesia and Malaysia because many batches of Vietnamese rubber products do not have the requisite quality certificates.

Most types of exported rubber dropped both in volume and value, including SVR 3L, SVR CV60, Latex and SVR 10.

In the first eight months of this year, rubber exports reached 548,000 tonnes valued at US$989 million, down 9.8% in volume and 31.9% in value compared to last year’s corresponding period.

Although China and Malaysia are Vietnam’s largest rubber consumers, their imports fell considerably this year. In the eight-month period, Vietnamese rubber exports to China decreased 21% in volume and 40% in value and to Malaysia down 13.7% in volume and 40% in value.

Hanoi hosts geographic indications exhibition

A geographic indications (GIs) exhibition, organised by the Ministry of Science and Technology and EC-ASEAN Intellectual Property Rights Cooperation Programme, opened in Hanoi on September 9.

The two-day exhibition has attracted 70 participating organisations from throughout the ASEAN region, introducing products which are considered intellectual property protected under laws governing GIs in Vietnam and ASEAN.

The Vietnamese booth features a wide display of specialized products, including Phu Quoc fish sauce, Trung Nguyen coffee, Phuc Trach grapefruit, Tan Cuong tea, and Hue conical hats, drawing the greatest attention from visitors.

Feature products from ASEAN countries included natural algae from Myanmar, coffee from Laos, peppers and palm oil from Cambodia, silk from Malaysia, and frozen lamb from Brunei.

According to the organising board, GIs not only help consumers locate authentic products, and boost the production and trade of traditional goods, but also help improve competitiveness of local products.

Currently, there are about 10,000 protected GIs in the world with an estimated trade value of more than US$50 billion, including 120 GIs in the ASEAN region.

Addressing the event, Deputy Minister of Science and Technology Tran Van Tung said that GIs become an important instrument in the field of trade and create a link of product value chains, contributing to socio-economic development and tourism promotion.

He said Vietnam has certified 38 unique GIs, ranking second in ASEAN countries. However, GI development in Vietnam faces many difficulties because of consumers’ limited knowledge and sectors’ poor cooperation.

The exhibition is expected to raise people’s awareness of GIs which are mostly used to protect intellectual property and promote trade value of products in Vietnam and other ASEAN countries.

Hanoi hosts geographic indications exhibition

A geographic indications (GIs) exhibition, organised by the Ministry of Science and Technology and EC-ASEAN Intellectual Property Rights Cooperation Programme, opened in Hanoi on September 9.

The two-day exhibition has attracted 70 participating organisations from throughout the ASEAN region, introducing products which are considered intellectual property protected under laws governing GIs in Vietnam and ASEAN.

The Vietnamese booth features a wide display of specialized products, including Phu Quoc fish sauce, Trung Nguyen coffee, Phuc Trach grapefruit, Tan Cuong tea, and Hue conical hats, drawing the greatest attention from visitors.

Feature products from ASEAN countries included natural algae from Myanmar, coffee from Laos, peppers and palm oil from Cambodia, silk from Malaysia, and frozen lamb from Brunei.

According to the organising board, GIs not only help consumers locate authentic products, and boost the production and trade of traditional goods, but also help improve competitiveness of local products.

Currently, there are about 10,000 protected GIs in the world with an estimated trade value of more than US$50 billion, including 120 GIs in the ASEAN region.

Addressing the event, Deputy Minister of Science and Technology Tran Van Tung said that GIs become an important instrument in the field of trade and create a link of product value chains, contributing to socio-economic development and tourism promotion.

He said Vietnam has certified 38 unique GIs, ranking second in ASEAN countries. However, GI development in Vietnam faces many difficulties because of consumers’ limited knowledge and sectors’ poor cooperation.

The exhibition is expected to raise people’s awareness of GIs which are mostly used to protect intellectual property and promote trade value of products in Vietnam and other ASEAN countries.

Paper manufacturing facility shaping up in Ba Ria-Vung Tau

A Taiwanese company, Cheng Long Group, has announced plans to construct a US$1 billion industrial paper processing plant with a capacity of over 1 million tonnes annually in the southern province of Ba Ria-Vung Tau.

The project was first mentioned in a dialogue between Cheng Long Group CEO Tong Ho Tsai and Ba Ria-Vung Tau provincial People’s Committee Vice Chairman Ho Van Nien in July 2014.

The Taiwanese group, specializing in providing paper for big groups such as Apple and Nike, currently has 29 paper plants throughout the world and two in Vietnam. The proposal facility has received the tentative approval of Ba Ria-Vung Tau’s local authorities along with their commitmentto create the  best possible conditions for the project to be granted an investment certificate in the near future.  

Apart from the project, Cheng Long Group is keen on investing in a power plant using coal biomass energy in Ba Ria-Vung Tau province.

Port expert advises on Cai Mep efficiency

Member of the Vietnam Logistics Association Executive Committee and board member of leading port and logistics operator Gemadept Corporation, Vu Ninh provided VIR with an action plan on how to transform the Cai Mep-Thi Vai port complex into a world class venue in the not too distant future.

Despite a several billion dollar investment and installation of cutting-edge equipment and technology, the operational efficiency of the southern province of Ba Ria-Vung Tau’s Cai Mep-Thi Vai deep-water seaport complex has proved below-par. The question is, how can this situation be turned around?

First, it is crucial to form common price sets for port services, diverse charges, synchronised development policies and the setup of a port authority model as well as links between ports in transport and associated infrastructure.

In fact, after five years of construction, a road project providing transport to the Cai Mep-Thi Vai area has not yet been completed. Another problem that needs to be tackled is that there are a number of mini terminals in Cai Mep area which are distant from each other, so it is important to shape a terminal chain, which helps to limit the time for processing and thereby attracts more vessels.

Second, there is a need to reduce the cargo volumes between Ho Chi Minh City and Ba Ria-Vung Tau. In fact, traffic congestion and stuck commodities at Ho Chi Minh City ports have plagued transporters and have been more frequent over recent months. Lines of trucks sitting idle along the Hanoi highway and specifically inter-provincial route 25B had significant social and economic impacts.

Once ports are opened in Cai Mep, management has a broader vision to dredge and expand into the sea. The port system however has yet to realise this vision and containers are still concentrated in Ho Chi Minh City ports.

Thailand once faced a similar situation. Initially, ports in the inner city held back Bangkok’s development and stressed already-existing traffic problems. To remedy the situation, the Thai government built a new deep-sea port, Laem Chabang, in the suburbs, about 90 minutes southeast of the city.

From that lesson Vietnam should take away the need to find suitable solutions, such as limiting the cargo volumes going through Ho Chi Minh City and moving them to Cai Mep-Thi Vai port complex to boost its efficiency.

Third is promoting connectivity between domestic inland waterways and ports in Cambodia, which shares the Mekong River with Vietnam. To turn Cai Mep-Thi Vai into a vibrant port venue, it is a must to ensure smooth transport to the Mekong Delta and links with ports in Cambodia’s Phnom Penh. That is one way to offset overloaded road transport and ease congestion at the Moc Bai Bordergate.

Towards this end, both countries’ transport authorities need to sit together to tackle administrative procedures, allowing ships to make entry/exit at river-way border gates. At present, port authorities and other agencies at the border work regular hours, they need to work later.

Vietnam’s seaport system and logistics supply chain is integral to the marine economic growth strategy and makes a remarkable contribution to the country’s GDP growth. In a broader sense, as Vietnam becomes a charming investment venue to multinationals and a destination of global ship alliances, the benefits will be enormous, not only economically, but also in terms of sovereignty and sea and island security.

Khanh Hoa to take over Nha Trang Port next month

The Ministry of Transport has told Vietnam National Shipping Lines (Vinalines) to complete transferring Nha Trang Port in Khanh Hoa Province to the provincial government for operation next month.

At a working session with the ministry last week, vice chairman of Khanh Hoa Province Le Duc Vinh said after taking over the port, the province would upgrade it into a modern port but still ensure the interests of employees.

Nha Trang Port currently grapples with low cargo throughput which has made incomes of employees drop and benefits of shareholders unsecured. Therefore, the port is expected to improve operations after the province takes over it.

Nguyen Chien Thang, chairman of Khanh Hoa Province, said Nha Trang Port would be developed into a tourist port to handle international cruise ships and be home to a marina as outlined in line with development orientations for Nha Trang City in the central province.

To acquire the management right of Nha Trang Port, Khanh Hoa Province has had to pay Vinalines VND85 billion - the amount Vinalines has invested in the port. Thang said the province has agreed to sell shares worth VND85 billion at Nha Trang Port to Vinpearl and will continue issuing more shares to investors after the port is transferred to the province.

According to Nha Trang Port One Member Company’s announcement to sell shares last April, the value of the port after equitization is estimated at VND245.4 billion, with the State holding VND184 billion (75%), nearly 22.7% of its shares worth VND55.6 billion to be sold to investors via an auction and the rest to employees. However, the share auction failed at that time.

In 2012, Khanh Hoa Province proposed a plan to take over Nha Trang Port from Vinalines and turn it into an international tourist port, but the proposal was turned down by the Government. According to a restructuring scheme for Vinalines, it holds a 75% stake at Nha Trang Port.

At a meeting with Prime Minister Nguyen Tan Dung in April this year, Khanh Hoa repeated its proposal and got the nod from the Prime Minister. The Ministry of Transport and Vinalines were assigned to work with the province over the future of the port.

Laguna Lang Co sold 80 per cent of first launched townhome block

Laguna Park last week sold 80 per cent of its first townhome block in an event of Laguna Park Classic Golf Tournament, which was organised to introduce the townhome project.

Residential project Laguna Park Lang Co is the newest addition to Laguna Lang Co’s portfolio of world-class lifestyle second homes after Banyan Tree and Angsana Residences. Consisting of seven blocks, a total of 70 two-bedroom townhomes –195.6 square meters each – are ideally located adjacent to the award-winning championship course Laguna Lang Co Golf Club, with expansive views of the golf course and generous green space.

The first ten units of Block 1 were open for sale in this event with special early bird offer priced at $265,000. Construction of the first block will soon start, followed by the opening of Block 2.

Easy access to three kilometers of pristine beach and a wide variety of world-class hotel facilities within Laguna Lang Co promises homeowners comfort and leisure unlike any other golf residences. With a compact yet functional modern style, the Laguna Park townhomes are poised to become central Vietnam’s finest lifestyle residences – an investment not to be missed.

Golf tournament event last week gathered close to 80 golfers and top investors from all over Vietnam and other countries in the region, the event heats up the lifestyle property market in central Vietnam with the latest residential development by Banyan Tree Group.

Vietnamese and international golfers competed over 18 holes on right in Laguna Park’s backyard - the 18-hole par-71 Laguna Lang Co Golf Club, praised as one of the most unique courses in Asia designed by 6-time Major winner Sir Nick Faldo.

Vietnam needs 9% growth to catch up with regional economies

Vietnam can be on par with regional economies such as the Republic of Korea and Taiwan (China) if it records annual growth of 9% over the next 20 years, the World Bank (WB) has said.

It added that Vietnam would fall into the middle-income trap if growth only averaged around 5-6% per annum.

The appraisal was made at a meeting on September 9 chaired by Deputy Prime Minister Vu Duc Dam and WB East Asia and Pacific Regional Vice President Axel van Trotsenburg in preparation for the Vietnam 2030 Report.

The report, expected to be finalised by the end of 2015, will give recommendations for Vietnam’s economic development in the coming years.

The main questions to be discussed in the report are what Vietnam should do to enhance the competitiveness of its economy, achieve faster growth and sustainable development, and to bring as many gains from development as possible to the people.

The report will assess Vietnam’s development after nearly 30 years of economic reform, identify the opportunities and challenges facing Vietnam and construct a development scenario in the coming period.

The agreement to compile the Vietnam 2030 Report was reached between Vietnamese Prime Minister Nguyen Tan Dung and WB President Jim Yong Kim during his visit to Vietnam in July this year.

HCM City begins promotion month

Many commercial centers, supermarkets and traditional wet markets in HCMC are running promotion programs from the start of this month, giving consumers chances to buy products with price discounts of up to 50%.

At present, supermarkets under Saigon Co.op including Co.opmart, Co.opXtraplus Thu Duc, Co.op Food store chains and TV shopping channel HTVCo.op are launching the “Pride in Vietnamese Goods 2014” program until September 14.

Around 3,000 necessities from over 600 suppliers such as Vinamilk, Tuong An, Nam Duong, My Hao, Vinacafe, Kinh Do and Colusa will be discounted by up to 50%.

Vo Hoang Anh, marketing director of Saigon Co.op, said the price cuts aim to boost consumption and is in response to the campaign of promoting Vietnamese goods and the 2014 promotion month of HCMC.

Besides selling products with discounts at its supermarkets, Saigon Co.op will deploy trucks carrying goods to rural areas and industrial parks to serve local people and workers, Anh added.

Saigon Trading Group, or Satra, also launches a promotion program at Satra Pham Hung in Binh Chanh District with 600 products while buyers coming to Saigon Supermarket in District 10 will receive presents and can join a lucky draw apart from enjoying discounts on products of 200 suppliers.    

Meanwhile, Big C supermarket chain also runs a range of promotion programs from on September 9 to October 6 with discounts of between 5% and 50% on nearly 1,000 items.

Besides food products, around 2,000 household application products and electronic devices sold at price discounts of up to 49% are available at Thien Hoa Electronics Center during this month.

In addition, as many as 40 traditional markets in the city such as Ben Thanh, Nguyen Thai Binh and Tan Dinh in District 1, Phu Lam, Binh Tay and Binh Tien in District 6 and Xom Chieu in District 4 also offer price reductions of 5-30% on clothes, footwear, bags and foods.

The city’s Department of Industry and Trade said that competent agencies and market monitoring teams of districts will conduct inspections to ensure the quality of products joining sales promotions this month.

In this year’s promotion month, there will be around 4,370 places selling goods at discounts from 1,200 enterprises and 3,000 family-run businesses, up 45.6% against last year.

Assets involving Thien Thanh Group banned from transfer

Assets relating to Thien Thanh Group such as land, projects and shares are banned from transfer as police are conducting an inspection following the detention of the group’s board chairman, Danang City’s government said in a note sent to its agencies last week.

On July 29, police arrested Pham Cong Danh, board chairman of Thien Thanh Group, and filed criminal charges against him and his accomplices over what is termed as violating State regulations causing serious economic consequences.

In Danang City, the corporation owns three big projects including a commercial complex on the premises of Chi Lang Stadium with total investment capital of nearly VND1 trillion, the Green Plaza Hotel project worth VND350 billion, and a 2.2-hectare commercial center project on Truong Chinh Street.

In Quang Ngai Province, Thien Thanh Group is the owner of a complex located in Son Tinh Commune and 794,900 shares it holds in IDICO Investment Consultancy Joint Stock Company.

At present, only the Green Plaza Hotel is operational while other projects are many years behind schedule. The hotel covering 3,000 square meters is located at a prime site bordered by Tran Phu and Thai Phien streets and the Han River.

This hotel in operation since 2008 previously belonged to Vietnam Electricity Construction Joint Stock Company and was developed at a cost of VND220 billion. Its total floor area is 27,124 square meters with 173 guest rooms and four conference rooms meeting the international four-star standards plus 5,000 square meters of office for lease.

After one year of operation, it was sold to Thien Thanh Group at a cost of VND385 billion.

However, the biggest project of the corporation in the central region is the Chi Lang Stadium in the most beautiful area of Danang City and is bordered by the major streets of Hung Vuong, Le Duan, Ngo Gia Tu and Chi Lang.

Thien Thanh is the successor of Huong Son Brick Company established in 1964 and operating in Quang Ngai Province. The group with its head office in HCMC has opened branches in provinces and cities such as Hanoi, Danang, Quang Nam, Quang Ngai and Binh Duong. It is the owner of many big-ticket projects nationwide.

Dong Thap to partner with Korean firm to improve rice value

The Government has approved Dong Thap Province’s plan to partner with Korea Rural Community Corporation to improve the quality of rice in the Mekong Delta province and find outlets for this food staple.

Nguyen Van Duong, chairman of Dong Thap Province, said the South Korean partner has initially agreed to cooperate with the province in rice production and consumption as part of a project to develop large-scaled rice fields on 10,000 hectares.

With the plan, Dong Thap has become the first Mekong Delta province to seek foreign cooperation to develop a from-farm-to-table model for its rice products.

To translate the plan into reality, the South Korean firm wants Dong Thap to specify credit sources from ODA (official development assistance) for the project estimated to cost VND400-500 billion (US$18.89-23.6 million) before it discusses detailed implementation steps for the project.

“Dong Thap and the Ministry of Agriculture and Rural Development should prove financial ability so that cooperation can begin,” Duong said.

Nguyen Van Cong, director of the Dong Thap Department of Agriculture and Rural Development, said the 10,000 hectares of rice fields would be developed gradually. The rice fields will be arranged in harmony with irrigation channels to make it easy for farmers to transport fertilizer to and paddy out of their fields.

According to the initial agreement between the two sides, the South Korean corporation will help Dong Thap reorganize rice production, build close connections between suppliers of rice seeds, fertilizer and other agricultural materials, and find outlets for rice.

Cong said the South Korean side suggested talking farmers into producing various rice products in different fields.

However, one of the biggest concerns of farmers is about unstable prices of rice although their products meet the criteria of GlobalGAP and VietGAP (Good Agriculture Practices).

At a meeting with the Southwest Steering Committee in April, Deputy Prime Minister Vu Van Ninh okayed the master plan for agricultural restructuring in Dong Thap. But, he noticed that the province should attend to improving profits for rice growers and work with the Ministry of Industry and Trade to gauge demand in order to make its rice production profitable.

According to the Dong Thap Department and Rural Development, the province turned out over 1.94 million tons of rice in 2010, with 500,000 tons of it exported.

In the agricultural restructuring plan the province would produce 2.8 million tons of rice by 2020, including 400,000 tons for export.

Vietnam levies anti-dumping duties on steel imports

The Ministry of Industry and Trade has decided to impose anti-dumping tariffs on cold-rolled stainless steel products imported from four markets in Asia to protect the domestic market, according to Tuoi Tre newspaper.

This is the first time Vietnam has applied the duties to imported stainless steel products since its integration into the world economy.

Under the ministry’s decision, which will take effect on October 5, the tariffs will be 3.07% on stainless steel imported from Indonesia, 4.64%-6.87% on products from mainland China, 10.71% on imports from Malaysia, and 13.79%-37.29% on imports from Taiwan.

Taiwanese steel-makers will be subject to the highest duties, with a 37.29% tariff imposed on products of Yuan Long Stainless Corp. and a 13.79% tax on other Taiwanese companies.

In June 2013, two Vietnamese steelmakers, Posco VST Co. Ltd. and Inox Hoa Binh JSC, lodged a lawsuit accusing steel exporters from these markets of dumping type-two products in Vietnam, causing serious injury for domestic steel makers.

According to the plaintiffs, the huge stainless steel imports caused a 132% increase in the unsold inventory of local steelmakers as of the end of 2012.

Meanwhile, domestic steel-makers only accounted for 35% of the market in 2011 while the market share a year earlier was 41%. In the same period, the market share of imported products jumped from 59% to 65%.

Vietnam’s steelmaking sector is capable of meeting domestic demand for stainless steel as it has invested dozens of millions of U.S. dollars on modern production lines and manufacturing plants. These companies, however, had to operate below designed capacity due to the dumping of imported products, they said.

Nguyen Thi Thuy Dung from the Vietnam Chamber of Commerce and Industry said the case will be a good experience for Vietnamese businesses and associations in integrating into the world market.

There are no other tools to protect domestic manufacturing sectors against imported products but antidumping tariffs, she said.

Cold-rolled stainless steel products are used to make consumer products, car parts, cooking and dining utensils, and construction materials.

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