RoK group invests in solar power projects in Dak Nong

The Shinsung Group from the Republic of Korea (RoK) kicked off two solar power projects worth a total of nearly 2.4 trillion VND (about 110 million USD) in the Central Highlands province of Dak Nong on December 11.

Accordingly, a solar power plant will be built in Dak Song district and the other plant producing solar modules will be constructed in Dak R’lap district.

The kick-start was made during a Dak Nong - RoK investment promotion conference held the same day with the participation of about 150 local businesses and 50 RoK enterprises operating in trade, industry, mechanics, and agriculture.

According to the RoK businesses, Dak Nong has potential not only in agriculture but also mineral industry.

Chairman of the provincial People’s Committee Nguyen Bon said that the province is focusing on attracting investment in key industries, such as alumina refining, agri-forestry processing, and high-tech agriculture.

So far, the province has lured as many as 49 investment projects with a total capital of 55 trillion VND (2.4 billion USD), he added.

Shinsung is the first RoK enterprise to pump money into Dak Nong.

Rubber sector aims to expand domestic consumption

Experts and business representatives gathered at a conference on December 11 in Ho Chi Minh City to seek ways to increase the domestic consumption of natural rubber to 30 percent of total output by 2020.

The event was jointly organised by the Department of Processing and Trading Agricultural, Forestry, Aquatic Products and Salt under the Ministry of Agriculture and Rural Development and the Vietnam Chemicals Agency under the Ministry of Industry and Trade.

Participants noted that domestic consumption of natural rubber remain low while rubber exports fell dramatically due to an oversupply on the world market and competition from synthetic rubber.

Therefore, boosting domestic consumption can be a good way to help the rubber sector develop sustainably, they said.

A number of measures were proposed towards this goal, with focus on enhancing product quality and value.

Dang Van Vinh from the Department of Processing and Trading Agricultural, Forestry, Aquatic Products and Salt said many types of domestic natural rubber currently fail to meet quality demand of domestic manufacturers, while a lack of quality regulations does not give natural rubber producers motivation to improve their product quality.

General Secretary of the Vietnam Rubber Association Vo Hoang An called for incentives to draw foreign investment in the sector.

Advanced technology application and human resource training should also be strengthened in a bid to improve the sector’s competitiveness in the international economic integration, An said.

Sharing Vinh’s view, Tran Thi Thuy Hoa from the Association said the sector needs to focus on developing brand names for its product when Vietnam joins free trade agreements.

Official statistics showed that Vietnam has seen an annual increase of rubber tree coverage of 7.63 percent since 2009, reaching around 980,000 hectares of rubber trees, producing 1 million tonnes of rubber in 2015.

Natural rubber output is estimated at 1 million tonnes this year, with only 180,000 tonnes, or 17 percent are consumed on the domestic market.

Binh Duong lures over 3 bln USD in FDI

The southern province of Binh Duong has lured over three billion USD in FDI since the beginning of 2015, tripling the yearly target of one billion USD, said the provincial Planning and Investment Department.

One of the largest projects this year is a 22.7 trillion VND (1.035 billion USD) paper manufacturing plant run by the Cheng Loong Group of China’s Taiwan in Singapore Ascendas-Protrade industrial park. The project is expected to start construction in late December this year.

Provincial Party Committee Secretary Tran Van Nam said the province has made good preparations in terms of investment policy and mechanism, industrial park infrastructure and transportation network in order to attracting more domestic and foreign investors.

According to Nam, after the Trans-Pacific-Partnership (TPP) agreement takes effect, the province will continue to attract FDI capital, shifting priority to modern technical investment and environmentally friendly projects.

The province is working on planning for 35 industrial parks and industrial clusters, focusing on supporting industry with a view to minimizing dependence on import materials for products to benefit from the TPP such as garment and textile, and footwear.

Binh Duong’s urbanization rate has surpassed 76 percent. The province aims to fully achieve the industrialization target in the next five years.

The province is now home to 26 industrial parks, covering a total area of 8,800 hectares. The average occupancy rate is 65 percent.

The locality plans to lure 1.4 billion USD in FDI in 2016. It vowed to continue to improve the local business climate and its provincial Competitiveness Index by adding support to investors, stepping up administrative reforms and ensuring social welfare.

Can Tho to step up economic restructuring in 2016

The Mekong Delta city of Can Tho will push ahead with economic restructuring and shift of growth model in 2016 to increase local competitive edge and sustainable development, heard a meeting in the city on December 11.

Director of the municipal Department of Planning and Investment Nguyen Van Hong said the city will try to make effective use of financial resources to develop socio-economic infrastructure systems and modernise industrial production, prioritising hi-tech, support, and processing industries.

The industrial production value is expected to expand by 8 percent in the year to come and contribute 28.7 percent to the gross regional domestic product (GRDP).

Local authorities will give priority to land clearance projects at industrial parks with the goal of drawing 50 million USD in investment capital in 2016.

In addition to improving business environment and competitiveness, the city will promote the application of science and technology in developing hi-tech commodities and optimising its potential and advantages to increase the added value of products and the proportion of non-agricultural economic sectors.

The city will make full use of the technology incubator facility built with assistance from the Republic of Korea, while encouraging investment in logistics and transport services.

According to the municipal People’s Committee, Can Tho has so far fulfilled 15 out of the 16 socio-economic development targets in 2015. The gross domestic product (GDP) is estimated to reach over 78 trillion VND (3.4 billion USD), a year-on-year increase of 12.28 percent. Industry, construction, and services make up 93.42 percent of the local economic structure while agriculture, forestry, and seafood account for 6.58 percent.

The city has attracted 12 investment projects worth 30.6 million USD into industrial parks this year, raising the total number of valid projects to 220.

The only unfulfilled target was export revenue.

Russian newspaper: Vietnam makes record on FTA signing

Russian news website Lenta.ru reported that Vietnam has set a world record on the number of free trade agreements (FTA) signed with foreign partners in one year, quoting a remark by an expert of the Russian International Affairs Council (RIAC).

According to RIAC Media and Government Relations Manager Anton Tsvetov, Vietnam has struck free trade pacts with the Eurasian Economic Union (EEU) and the Republic of Korea (RoK) and completed the negotiations on the Trans-Pacific Partnership (TPP) agreement in 2015.

Most recently on December 2, Vietnam and the European Union (EU) inked an announcement to officially conclude the negotiations on the EU-Vietnam Free Trade Agreement (EVFTA), he said.

EU experts commented that the FTA with Vietnam is a stepping-stone towards the liberalisation of trade with the Association of Southeast Asian Nations (ASEAN). Vietnam is the second nation, after Singapore , to become a member of the free trade area with the EU, Tsvetov said.

The signing of the free trade deals has indicated that Vietnamese leaders are bringing the country into global economic integration via specific steps to expand export markets, diversify business environment and import goods sources, and attract more overseas investors, the expert said, adding that this is useful for the country’s technology transfer and State-run enterprise equitisation.

Lao Cai aims for two-digit growth in 2016

The northern province of Lao Cai aims for an economic growth rate of 10.1 percent next year, with Gross Regional Domestic Product (GRDP) per capita of 45.8 million VND (more than 2,000 USD).

The GRDP per capita this year is estimated at 39.4 million VND, the highest among 12 northwest provinces.

Lao Cai also hopes to welcome 2.45 million tourists in 2016, up 20 percent from 2015.

With the launch of an expressway linking Hanoi capital with Lao Cai province and its favourable geographic location as the gateway of the Kunming-Lao Cai-Hanoi-Hai Phong road corridor, the province is geared to strengthen trade and tourism connection with regional nations.

The province has also offered incentives and focused on developing infrastructure to draw investment, thus boosting the local socio-economic development next year.

However, Lao Cai faces great difficulties as State budget allocation is expected to reduce in the years ahead, while the construction of major projects in the province will affect tourism activities.

In addition, with the adjustment of poverty line, the rate of poverty in remote areas is high, estimated at more than 40 percent, requiring suitable policies.

The International Factors Group (IFG) has announced that Vietnam Technological and Commercial Joint Stock Banks (Techcombank) has officially become the first Partner Member of the group in Vietnam.

Accordingly, Techcombank will provide more overall import-export factoring solutions, thus diversifying business segmentations with more preferential price rates and better meeting financial demand of import-export enterprises.

Joining the IFG, the bank will also have more development opportunities in the field with partners around the world.

The bank will also have access to the online information exchange and transaction system Ifexchange, helping minimize transaction time and ensuring law compliance.

Founded in 1963, IFG is the global trade association that fully represents and promotes the interest of the factoring, invoice financing and asset-based lending industry on a global basic. IFG currently has 160 members from 60 countries worldwide.

Quang Binh attracts 1.9 billion USD in investment

The central province of Quang Binh attracted 468 investment projects worth a total of over 41.8 trillion VND (1.9 billion USD) in the period from 2011 to 2015.

Of the figure, 283 projects worth 278 million USD were sourced from Foreign Direct Investment (FDI) capital, Official Development Assistance (ODA) and non-governmental aid.

In 2014 and 2015, the province collaborated with the Bank of Investment and Development of Vietnam (BIDV) to successfully organise two conferences on investment promotion. At the two events, local authorities granted licences to 54 projects with registered capital of over 35.9 trillion VND (1.6 billion USD).

Large-scale projects include a 32-million USD garbage treatment factory funded by German investors and a Vingroup commercial mall worth 800 billion VND (over 35 million USD).

In the near future, the locality will continue improving its business climate and releasing investment incentives and suitable mechanism to lure more investment.

Vietnamese seafood industry moves to meet US new standards

Vietnam’s tra fish processors and exporters should take prompt action now as they have just 18 months as from March 2016 to meet the new rules issued by the US Department of Agriculture (USDA) requiring domestic and foreign suppliers to meet the same standards.

According to general secretary of Vietnam Association of Seafood Exporters and Producers (VASEP) Truong Dinh Hoe, Vietnam will have to submit lists of establishments that currently export and will continue to export tra fish products to the US as well as documents proving that their products follow regulations set by the US Food and Drug Administration (FDA).

He added that the new rules also affect US importers as during the transitional period, the USDA will conduct inspection and exercise broad enforcement discretion in domestic establishments that process and distribute catfish products, making them hesitate to buy tra fish from Vietnam.

However, industry insiders said that once meeting the US standards, Vietnam’s fish products will gain prestige on the international market, creating favourable conditions for the producers to enlarge their markets.

Nguyen Phuoc Buu Huy, Deputy General Director of Cadovimex II Export Processing And Fisheries JSC said that the company is optimistic that it will meet the new rules, as Vietnamese enterprises are growing and processing tra fish in line with sustainable international standards such as ASC, Global GAP and MSC.

Tra Vinh: Rice farmers earn extra income with intensive farming

Farmers in Da Loc commune, Chau Thanh district of the Mekong Delta province of Tra Vinh have earned an extra 5 million VND (222.2 USD) for each hectare of rice applying the System of Rice Intensification (SRI) practice.

The Mekong Delta province of Tra Vinh reported the outcome after the pilot SRI application on 60 hectares of rice in this year Autumn-Winter crop (August to December).

Nearly 70 farmer households who participated in the pilot programme earned more than 16 million VND (711 USD) in profit per hectare thanks to the cut in costs for seeds, fertilizer, pesticides and irrigation.

The average yield was estimated at 7 tonnes of rice per hectare, 0.7 tonnes higher than that of traditionally cultivated crops.

Nguyen Van Nam, a participating farmer, said the practice required only half of the regular seed amount and water supply as well as 80 percent of pesticide use.

As a result, the production cost reduced from 3,100 VND to 2,100 VND per kilogramme.

According to Trang Tung from the provincial Department of Agriculture and Rural Development, Tra Vinh has about 7,000 hectares of rice areas incapable of producing three crops per year due to lack of access to water and saltwater intrusion.

Applying SRI practice is among the province’s effort to develop rice agriculture in response to climate change consequences.

International arrivals to Hanoi on upswing

Nearly three million foreign visitors have arrived in Hanoi from the outset of 2015, rising 14 percent from the same period last year, Director of the municipal Department of Tourism Do Dinh Hong said on December 11.

The capital city welcomed holiday-makers from 160 countries and territories worldwide, according to Hong.

Despite global economic downturn, Hanoi has seen impressive growth of foreign travellers with an annual average growth rate of 10 percent, he said.

In the past few years, the city’s tourism sector has made concerted efforts to improve management efficiency and develop high-quality and competitive tourism products such as historic-cultural sites, handicraft items, festivals, and MICE (Meetings, Incentives, Conventions and Events) tourism.

In addition, the tourism department pays attention to promoting and building Hanoi tourism brand.

The city is focusing to make investment in comprehensive and modern facilities as well as create top-quality tourism packages, making Hanoi become an attractive destination in the country and the region at large.

Vietnam, Japan stimulate trade ties

The “Meet Japan” seminar held in Hanoi on December 11 provided a communications channel for future trade partnerships between Vietnam and Japan.

The function brought together over 120 representatives from Vietnam’s Foreign Ministry, provincial authorities, and enterprises as well as from Japan’s business community.

Nguyen Hoang Long, standing head of the Foreign Ministry’s Bureau of Consular Affairs, said the two economies have bonded together based on their close geographical distance and fairly similar cultures.

According to Long, Japan is the biggest provider of official development assistance for Vietnam over the past 20 years. The former is also the latter’s number two investor and number four trade partner.

Currently, more than 1,400 Japanese firms are operating in Vietnam. In 2015, close to 100 Japanese officials and businesses visited Vietnamese localities to promote investment.

Katsuro Nagai from the Japan Embassy in Vietnam stated that the Southeast Asian nation is a favourable destination of Japanese enterprises. He hoped the seminar will boost bilateral ties and help draw more Japanese investments into Vietnam.

Chikahiro Masuda from the Japan International Cooperation Agency in Vietnam underscored the six major sectors for joint collaboration – electronics, agricultural machinery, agro-fisheries processing, shipbuilding, environment, auto and auto spare parts production.

Japan is helping Vietnam design action plans for these spheres, he said.

He also pointed to the fact that the Japanese side has supported the Hanoi University of Industry in training human resources in the past decade.

Naoki Takeuchi from the Japan External Trade Organisation in Vietnam said a large number of Japanese companies want to establish production facilities in Vietnam.

He proposed the Vietnamese Government work to further improve the investment climate.-

Quang Ngai sees surge in tourist arrivals in 2015

The central coastal province of Quang Ngai has seen a surge in the number of tourists visiting the province since the beginning of this year.

According to figures from the provincial People’s Committee, as of November, approximately 550,000 tourists visited the province, up 22 percent from 2014. Among them 47,000 were international visitors, a 24-percent increase.

The province’s revenue from tourism reached 510 billion VND (22.67 million USD), up 18 percent against the same period last year. Ly Son Island is the most popular destination with the arrival of 15,000 tourists.

The improved tourist infrastructure in the past years thanks to projects from big investors like Vingroup or Saigontourist and new tours like Cu Lao Cham – Ly Son – Sa Huynh are two main reasons behind the success.

At present, Quang Ngai has around 275 accommodation facilities, 80 percent of which are guest houses. There are 13 travel agencies in the province, two of which are international travel companies.

For the entire 2015, Quang Ngai hopes to welcome 650,000 tourists, up 16 percent from the previous year, with 55,000 being international visitors, up 18 percent from the same period last year.

The revenue of the whole year is estimated at 560 billion VND (25 million USD), up 9 percent from 2014.-

VN exports to grow 10%: HSBC

Viet Nam's exports will grow by over 10 per cent between 2021 and 2030, little changed from the previous five years, according to a recent trade forecast by HSBC.

The report says FDI inflows have been very strong in recent years, helping the country diversify its export base and gradually move into higher value sectors, most notably ICT equipment, which now accounted for around 25 per cent of its exports, up from less than 10 per cent five years ago.

But at the same time, the large, young, and increasingly skilled workforce continues to attract manufacturers of low-cost items such as clothing and apparel to Viet Nam.

Rapid liberalisation should greatly benefit Viet Nam's trade with the rest of Asia, the US, and Europe, and underpin expansion into new markets.

Viet Nam is one of the 12 countries in the Trans-Pacific Partnership (TPP), which reached a preliminary agreement in October. In August, Viet Nam also reached an agreement in principle for a free trade agreement with the EU. It is also speeding up preparation for the launch of the ASEAN Economic Community (AEC) on December 31, 2015.

ICT equipment is forecast to contribute 19 per cent of the total increase in exports between 2021 and 2030, up from 14 per cent in 2015-20.

Samsung, which first opened a mobile phone plant in Viet Nam in 2009, has led this increase. Its first plant doubled its output each year, while another factory was built in 2013 and plans were announced for two more factories a year later: a US$600 million facility to manufacture household appliances and a $3 billion smartphone plant.

LG, Microsoft, and Intel also have plans to expand operations in Viet Nam.

The large, growing low-cost workforce and the progress towards the TPP agreement and the ASEAN single market mean Viet Nam will continue to attract low cost manufacturing firms and maintain its strong position in the textile and garment market.

Clothing and apparel will contribute 19 per cent in 2021-30 while textiles and wood products will account for 10 per cent.

Viet Nam's geographic location between India, China, and Southeast Asia leaves it well-placed to trade with its fast-growing neighbours.

But with Asian trade much weaker this year, one factor that has helped Viet Nam outperform the rest of the region has been its strong links with the US. Indeed, the US is Viet Nam's largest export partner and this will still be the case in 2030.

The report expects industrial machinery to contribute around a quarter of the increase in imports in 2021-30, little changed from 2015-20.

ICT equipment will account for around 10 per cent of the increase in 2021-30 as a result of the strong presence Viet Nam has in the global telecom sector and more broadly the gradual technical upgrading of the economy.

According to the World Bank World Development Indicators, by 2014 Viet Nam had 12 secure internet servers per million people, up sharply since 2008 and more than China, Indonesia and the Philippines but substantially less than Thailand and Malaysia.

Textiles and wood products and clothing and apparel will account for close to 20 per cent of the increase in imports, reflecting both intermediate demand from the domestic sector and final demand from the buoyant consumer market (household incomes in Viet Nam are forecast to rise rapidly over the forecast period, though they are expected to remain lower than China).

China is Viet Nam's biggest import partner (of the 24 trade partners in the HSBC Trade Forecast) and with imports from China growing by 15 per cent in 2021-30, it will remain so in 2030.

Korea will continue to be the second largest import partner over the forecast period.

Intra-regional trade in Southeast Asia should benefit from the ASEAN bloc forming a single market by the end of the year, and imports from Malaysia, Indonesia, and Singapore are expected to grow by close to 10 per cent in 2021-30. Imports from the Middle East and North Africa will also grow by around 10 per cent, largely reflecting the growing commodity needs from the buoyant consumer market and expanding industrial sector.

Ministry helps attract Japan investors to VN

The Ministry of Foreign Affairs yesterday organised a meeting between leaders of Vietnamese localities and representatives of the Japanese embassy and firms with expectations of boosting mutual understanding for further investment opportunities.

Katsuro Nagai, envoy of the Japanese Embassy, said Japanese firms considered Viet Nam as an attractive destination for business.

However, investment in Viet Nam accounted for just one per cent of Japan's foreign investment while the country poured 31 per cent of its foreign investment into United States.

The envoy said that there was much space and opportunities for expanding Japan's business in Viet Nam, particularly as Viet Nam keeps improving the business climate and signing free trade agreements with major partners like EU, Trans-Pacific Partnership and ASEAN-China.

The President of Japan Business Association in Viet Nam, Shimon Tokuyama, said that over 1,400 Japan firms were operating in Viet Nam, mostly in automobile, electronics, trade and services in major cities of Ha Noi, HCM City, Hai Phong and Da Nang.

Few businesses reached disadvantaged provinces, especially mountainous ones because of poor infrastructure and services.

However, he said, some businesses were considering to shift investment to agriculture and run businesses in other provinces.

The Head of the Japan External Trade Organisation in Viet Nam, Naoki Takeuchi, said according to a survey conducted by the organization last year, Japanese firms in Viet Nam called for an improved legal framework, administrative simplification and infrastructure in the country.

He said, besides transport infrastructure, provinces that wanted to attract foreign investors must pay more attention to developing housing and services for foreigners.

"Localities must identify their advantages and promote them in both English and Japanese to reach potential investors," he said.

Chairman of Cao Bang Province People's Committee Hoang Xuan Anh said that the mountainous province was seeking investors in the areas of tourism, mining and hi-tech agriculture.

The province has about 300-km of border with China which should help the province boost trade with China.

Chairman of Long An Province People's Committee Do Huu Lam said that among measures to better attract foreign investors, the province focused on communication to provide timely information for investors, particularly those related to laws and incentives.

According to statistics from the Ministry of Planning and Investment, in the last 11 months, Japanese investors poured capital in 410 projects, totaling $1.72 billion, ranking third among the largest investors in Vietnam behind South Korea and Malaysia. Japanese investments are in 32 out of Viet Nam's 63 cities and provinces.

Viet Nam expands instant coffee exports, expects growth of 25%

The Vietnamese coffee industry is focusing more on processing instant coffee, which generates higher profits for the national coffee sector.

This information was released at a meeting that reviewed the 2014-15 coffee crop and set tasks for the next crop. It was held by the Viet Nam Coffee and Cocoa Association (VICOFA) in Ha Noi on Thursday.

The coffee harvest in Viet Nam, the world's second-largest producer after Brazil, runs from October to September.

VICOFA Deputy Chairman Nguyen Nam Hai said instant coffee factories had sprouted in the country as both domestic and foreign businesses had poured into the sector.

Hai said both domestic coffee suppliers and foreign-funded growers had ceaselessly expanded investment in their instant coffee processing plants and had enhanced the quality of their coffee products to expand markets.

These plants consumed large volumes of coffee beans and boosted instant coffee exports, Hai said.

According to a report by VICOFA, the volume of instant coffee exports in 2014 reached about 54,000 tonnes, accounting for 3.2 per cent of the total export quantity, with revenues of nearly US$274 million that account for 7.7 per cent of the total turnover.

By the end of 2015, the volume of instant coffee exports could increase by 25 per cent year-on-year, the VICOFA said.

The total coffee output in the 2014-15 period had decreased by more than 20 per cent, compared with the previous season, due to bad weather, outdated harvesting technology and poor processing facilities.

In September alone, the total coffee exports touched nearly 92,600 tonnes, worth more than US$186 million, registering a 4.9 per cent fall in volume and 13 per cent fall in revenue year-on-year, the report said.

The country exported 1.25 million tonnes of coffee during the 2014-15 period, with a turnover of $2.62 billion, which was a 21.9 per cent fall in volume and a 20.1 per cent drop in turnover compared to the same period last year, the report said.

Hai said 1kg of raw coffee beans was sold at only about $2, while 1kg of instant coffee cost about $10, elevating instant coffee as a high value-added product for export and domestic consumption.

Many foreign-funded growers were pouring money into instant coffee processing factories and, therefore, domestic enterprises needed to renovate technologies in order to compete with foreign businesses, Hai said.

In the 2014-15 period, Germany and the United States remained the two largest markets of Vietnamese coffee, with the export volumes reaching nearly 201,000 tonnes and more than 145,000 tonnes, respectively, Hai said.

Banks battle it out in Tet loans market

Commercial banks and financial companies are fiercely competing for a slice of the profitable personal loans market as demand often rises sharply at the end of the year.

Industry insiders said the period between December till the Tet (Lunar New Year) holiday that felt on February 8, 2016 was always the most popular period for personal loans, as Vietnamese people required money for home repair and purchase, shopping and car purchases.

To meet the rising demand, many banks are offering preferential loan packages to attract customers.

VietBank is marketing home purchase loans at an annual preferential interest rate of eight to nine per cent for the first year.

An Binh Bank, for example, is offering loans for car purchase at an annual preferential interest rate of 7.49 per cent.

Viet Capital Bank is even offering loans at just 6.8 per cent interest per year to customers who want to buy vehicles for production and business. At Sacombank, the annual rate is 7.5 per cent for the first year.

Many banks are also co-operating with production, trading and service firms to offer preferential programmes to customers who pay with credit cards.

Some lenders have even introduced personal loans worth VND20 million to VND500 million (US$890-$2,230) for consumption purposes, with there being no need for borrowers to mortgage their assets.

Experts said this upward trend would continue till the Tet holiday. Banks would try to lure customers with low interest rates, especially for mortgage and real estate loans.

According to the State Bank of Viet Nam, outstanding consumer loans as of the end of the third quarter surged 31.4 per cent against December 2014. The amount accounted for eight per cent of the country's total outstanding loans.

Dang Ngoc Tu, vice-head of the National Financial Supervisory Commission's policy research and co-ordination department, said the domestic consumer loans market had a lot of potential as Viet Nam has 37.8 million people with stable income, of which 30 per cent would be eligible for consumer loans.

The Viet Nam Banks Association also estimated that consumer lending could account for 10 per cent of the GDP, or more than $10 billion per year, in the next five years.

However, experts said to attract more customers in the long run, lenders needed to improve their technology, hire quality employees, diversify channels and focus on risk management.

Online tax payments still showing error

Several businesses are still reporting issues with online tax payments, and the technical glitches during each transaction are costing them in terms of time and money.

This was revealed at an online discussion on online tax payments held in Ha Noi on Wednesday.

The Ministry of Finance had instructed commercial banks to completely cease over-the-counter tax payments and work with tax agencies to implement online tax payments by the beginning of December.

Director of a firm dealing in imported automobiles in the capital said their tax payment was between VND5 billion and VND10 billion (US$222,000 and $445,000) each time. However, banks set a limit of only VND3 billion ($133,000) per transaction. This meant his firm had to transfer the remaining funds by payment order the following day. It cost them time and even some lost business opportunities as their imported cars could not be delivered in time to customers.

Another company faced software and password errors. Since the online system could only be operated through Internet Explorer it caused them a few problems.

"We tried for five days to make online tax payments but to no avail. We do not know the reasons and how to fix it," he added.

In addition, they were also afraid to part with their digital signatures as they were worried about their chief accountants misusing the system.

A company in the northern Bac Giang Province said it had been waiting two weeks for a response from the tax authorities on their payments.

Sharing their problems on the issue, a business house in the central Ha Tinh Province, said they paid their taxes online on October 30. However, on December 4 they received a tax payment announcement and were charged for late payment.

Answering the questions, Nguyen Dai Tri, deputy director of the General Department of Taxation said they would contact the enterprises and sort out the problems.

Tri affirmed that payments through its portal was free of charge. The payment requires an internet connection and a digital signature to ensure security. This could help businesses reduce time and costs.

He asked businesses to get their computers checked and their broadband connections fixed to ensure smooth file uploads and avoid download errors.

Tran Cong Quynh Lan, deputy general director of Vietinbank, said the connection between the department and the Vietinbank had been implemented every day. However, the money transfer depended on the interbank system. The department had still not confirmed tax duties at the first payments received from banks.

Pham Tien Dung, chairman of Banknet.vn said the late response to tax payments of businesses was due to the integration of the tax sector, treasuries and banks. The units have all co-operated to deal with the situation.

Statistics from the department showed that after 10 days of implementing the compulsory online payments, the number of documents and money using online services had sharply increased. In November, over 55 per cent of businesses used online tax payments.

However, the increasing rate has not reflected the effectiveness of online tax payments as the deadline for all tax duties will be December 21.

The country has more than 476,000 businesses which have registered for online tax payments, accounting for 92 per cent of total businesses. However, only 41 per cent of the firms pay their taxes online.

The Ministry of Finance has yet to penalise anyone for not using the online system.

Asus Zenfone sells 1.5m units

More than 1.5 million Asus Zenfone units have been sold in Viet Nam after only two months of launching the new Zenfone 2 Laser.

Asus decided to reduce the selling prices of two editions of Asus Zenfone 2 to celebrate the record at VND3.69 million and VND4.49 million respectively.

Zenfone 2 Laser has been the latest Zenfone with several upgrades and new functions.

Microsoft receives CSR award

Microsoft was honoured with the AmCham Corporate Social Responsibility (CSR) Recognition Award 2015.

The award was for Microsoft's commitment to transparency, good governance, sustainable business practices and serving the community that provides a model inspiring others to follow in Viet Nam, and reflects the best practices that AmCham seeks to promote in the country.

Microsoft has endeavoured to make crucial contributions in the ICT industry and the country's economic development through various programmes to build solid IT infrastructure, education, employability and entrepreneurship projects to promote innovation as well as improve the quality of human resources.

Viet Nam has been an important market for Microsoft in ASEAN which received special investment from the IT giant compared to other countries in the region.

VN must prepare for deeper integration

Economic co-operation should be the key component in Viet Nam's strategy for its integration into the ASEAN community, an official said at a conference in Ha Noi yesterday.

Big differences between the 10 members of the biggest regional community – including the diversity of government institutions, development levels, languages and religions - at some point may hinder ASEAN nations from reaching a consensus, said Nguyen Son, deputy chief of staff for the Inter-agency Steering Committee for International Integration of the Economy.

The conference was organised to discuss Viet Nam's plans to brace itself for deeper ASEAN integration.

"ASEAN cannot always voice a common political viewpoint," he said.

"The economic aspect, at such a time, would be the motivation for co-operation."

However, he said the emphasis on the economy does not necessarily mean Viet Nam will weigh lightly on other integration pillars, including political security and cultural-socio communities, adding that "Viet Nam would take part in the three communities on an equal basis".

The ASEAN Economic Community (AEC), due to be official in three weeks, is the biggest effort of the regional bloc so far, aiming to create a single market with the European Union deemed as a role model.

More economic opportunities will open to Viet Nam with the establishment of the AEC, said Son, but big challenges remain and require sweeping actions.

Economic integration would bring about development only when Viet Nam is able to raise its competition capability via creating "connectivity", said former Viet Nam Chamber of Commerce and Industry President Pham Chi Lan.

She said the country should promote more effective connectivity in Governmental institutions, for example customs or taxes, from low levels that work directly with the enterprises, while devoting more efforts to human resource connectivity.

English language is not the country's mother tongue, and despite being ranked 29 out of 70 nations and territories in terms of English proficiency by the Education First's English Proficiency Index, the world's largest English ranking system, Vietnamese workers are known to be particularly weak at conversational skills in both listening and speaking.

"Viet Nam should also have a plan on international infrastructure connectivity, for example, acting as a gate for maritime transportation to island nations like the Philippines or Indonesia," she added.

"There is not much time for Viet Nam anymore," Lan warned. "If we can't radically change how things function now, in five more years the challenges might outnumber the opportunities."

Battery manufacturer adds jobs in Ha Nam

Singapore GP Batteries, a leading producer of batteries and energy devices, has been given the go ahead for construction of a new 29,379 square metre facility at the Hoa Mac Industrial Zone in the Duy Tien District of Ha Nam Province.  

“This significant expansion by a long-standing Singaporean company is a testament to the pro-growth climate we have in our province,” said Mai Tien Dung, secretary of the Ha Nam Party Committee.

At a ceremony awarding the investment certificate, Dung said the Hoa Mac Industrial Zone and the energy industry has been an area worthy of focus, and today our work continues to pay off with the creation of hundreds of new cutting-edge jobs and opportunities for the citizens of the province.

Director General Henry Leung of Singapore GP Batteries in turn revealed that construction of the US$6 million facility is expected to be completed within 36 months and open for business by December 2018.

“We are excited about this expansion,” Leung said, as a strong leader in our community, this expansion exemplifies our commitment to developing a solid work force and recruiting dozens of local engineers, manufacturers, and quality control specialists to begin work in it.

Engineering industry overcomes difficulties for int'l integration

Over the past decade, Vietnam’s engineering industry has increased localization and exports. The sector is finding ways to develop and integrate into the global economy.

The engineering sector, one of Vietnam’s key industries, fetched an export value of 32% against the total value last year, exceeding the set target of 30%.

Nguyen Tang Cuong, President of Quang Trung Group which specializes in manufacturing components and spare parts for hydropower works, said Vietnam’s mechanical industry mainly focuses on assembly.

Cuong added that many enterprises like ours have increased investment in technology to catch up with regional partners. The domestic engineering industry hasn’t grown on par with the government’s development strategy due to limited human and financial resources.

Vietnam's engineering industry is finding ways to develop and integrate into the global economy. (Photo: VCCI)

According to Nguyen Chi Sang, director of the National Research Institute of Mechanical Engineering, the ratio of mechanical production value increased from 15% in 2002 to 25.1% in 2010.

With the free trade agreements that Vietnam has signed and will sign, the domestic mechanical engineering sector is finding opportunities to expand its export market, access advanced technologies, and improve its technological level.

But to these ends, the sector needs to focus its investment and identify industries relevant to its needs while taking advantage of state support for renovating production technology and applying advanced management models.

Truong Thanh Hoai, director of the Heavy Industry Department of the Ministry of Industry and Trade, said “we’ve submitted to the government several mechanisms, some of which have already been approved, to develop the mechanical industry. For instance, the localization policy for thermal power plants will give us a major manufacturing mechanics market. Once the projects in the field are successfully piloted, Vietnamese mechanical firms will improve significantly.”

Vietnam’s target is to meet more than half of domestic demand by 2050, accounting for 21% of the structure of Vietnam’s industries.

China lifts ban on import of prawns from Vietnam

Chinese government officials have lifted the ban on the import and culture of fresh prawns as of December 7, paving the way for their re-entry into the market, reports the Ministry of Industry and Trade (MoIT).  

The Asia Pacific Market Department said the re-introduction comes after lengthy discussions with Chinese officials and testing to assure there are no negative effects on aquaculture biodiversity or possibility of infecting local Chinese stocks with disease.

In February 2015, China barred the entry of fresh prawns into the country to protect local shrimp farmers from dreaded viruses that had been detected and had the potential to wipe out the nation’s shrimp farms.

To assure the quality of exported products, the department asked exporters and farmers to strictly control food hygiene in breeding, transporting and processing of prawns and other shrimp products.

Some 65 young entrepreneurs and leaders from ten ASEAN member states and dialogue partners – the Republic of Korea, Japan and China - gathered in the ASEAN+3 Young Entrepreneurs Forum in Ho Chi Minh City on December 12.

The forum was organised by the National Committee on the Youth of Vietnam, the Ho Chi Minh Communist Youth Union (HCYU) Central Committee and the Vietnam United Youth League to celebrate the establishment of ASEAN Community at the end of this month.

Themed ASEAN+3 young entrepreneurs towards sustainable development, the event highlighted the importance of the sustainable economic development as well as the pioneering role of young entrepreneurs in building a sustainable ASEAN Community.

In his remarks at the forum, President of the Vietnam United Youth League Nguyen Phi Long said the ASEAN Community allows deeper regional integration and greater competitiveness of its member countries and higher profile of ASEAN at the international arena.

In this context, the forum was held for the young entrepreneurs and leaders to share experience and exchange ideas for sustainable development of a business, Long noted.

He stressed that sustainable development, in which economic growth must come together with social equality and environment protection, has been well-integrated into Vietnam’s socio-economic strategies.

During the forum, participants discussed successful sustainable business models and proposed solutions for regional issues and strengthening cooperation between the young entrepreneurs.

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