Banks enter capital mobilization race

Many commercial banks have hiked their annual deposit rates for different tenors and offered numerous promotions since early this year to raise more capital, Nguoi Lao Dong newspaper reports.

According to the National Financial Supervisory Commission, the annual average deposit rate for savings of more than 12 months was 6.55% in the first two months of the year, up three basis points over the end of last year.

Orient Commercial Joint Stock Bank (OCB) has revised up its interest rates for savings of six to 11 months to 7%. As for the 13-month term, the rate is 7.9% for deposits of at least VND100 billion.

Some small and medium joint stock banks have also raised their interest rates to the upper limit of 5.5% for tenors of less than six months. At Viet Capital Bank, the rates are 8.3% and 8.5% for 13- and 15-month deposits respectively.

DongA Commercial Joint Stock Bank has hiked its deposit rates by 60 basis points for six-month savings to 6.9%.

Meanwhile, HCMC Development Bank (HDBank) offered a promotion for individual customers of 28 years old or older who make deposits of six or 13 months. Such customers will be entitled to a maximum of 70 basis points higher than the normal interest rates of 6.4% and 7.2% respectively for six- and 13-month savings.

Some large commercial banks also have pushed up their deposit rates. It is noteworthy that the difference between the rates at small joint stock banks and large commercial banks amounts to 2.3-2.6%.

For example, Vietcombank, BIDV and VietinBank offer a rate of 4.8-5.1% for six-month savings while the rate is 7-7.4% at Viet Capital Bank, NCB, DongA Bank, OCB and SCB.

According to data of the National Financial Supervisory Commission, capital mobilized from economic organizations and individuals grew by 0.5% in the last two months compared to the end of last year. The abundant liquidity in the banking system is thanks to SBV’s purchase of a large amount of foreign currencies and a net injection of VND70 trillion into the market in January-February.

Can Van Luc, a banking-financial expert, said banks have hiked deposit rates to raise more capital to achieve their credit growth goals and restructure their long-term capital. HSBC CEO Pham Hong Hai said the increasing demand for capital has forced banks to revise up their savings rates.

Despite higher savings rates, lending rates may not go up as the central bank has asked commercial banks to reduce operating costs and lending rates, said Luc.

It is difficult to cut lending rates this year due to increasing costs for capital mobilization and low lending rates which have been offered to creditworthy customers. In addition, banks will not increase lending rates to retain customers.

Quality of fruit exported to U.S. needs special attention

Recent fruit exports to the United States have become easier, especially since the first shipment of Vietnam’s star apples in late 2017. However, exporters should pay special attention to product quality, otherwise they would face a dear price.

After a long period for negotiations, key Vietnamese fruits, including dragon fruit, longan, mango, litchi and star apple, have made their way to demanding markets such as Taiwan, Japan, Chile, New Zealand, and the U.S., said Le Van Thiet, deputy head of the Plant Protection Department under the Ministry of Agriculture and Rural Development.

After a decade of talks, the first batch of Vietnam-grown star apples has been shipped to America, Thiet noted at a meeting on the farming and sale of fruits with the government of Can Tho City on March 8.

A ceremony on the first shipment of star apples into the U.S. was held last December, recalled Thiet, adding that a total of 134 such shipments weighing around 230 tons have arrived stateside. “The result is beyond our expectations,” he said.

Having been authorized by the American authorities concerned, the Ministry of Agriculture and Rural Development has asked the Plant Protection Department to issue 18 codes of star apple-farming areas, with 16 in Tien Giang Province and two in Can Tho City.

Thiet said the U.S. has agreed to import Vietnam-grown mangos, with the first batch scheduled to be shipped next month.

Nguyen Dinh Tung, director of Vina T&T Co Ltd, said American consumers in some places are willing to pay US$100 for a half kilo of star apples. Some supermarkets there even sell the fruit at certain hours only, meaning the scarcity of this fruit in the U.S.

However, Tung said, some star apples shipped to the U.S. were discovered with fruit fly larvae inside.

If star apples are of poor quality, consumers may think of them as substandard products, he stressed, adding that some measures should be taken in a timely manner.

Ngo Tuong Vy, deputy director of Chanh Thu Fruit Import and Export Co Ltd in Ben Tre Province, said though many partners want to order a large number of star apple shipments, her company has declined such offers. The reason is that if this kind of fruit is affected by fruit fly, the risk of affecting the next crop will be quite high.

“So we have temporarily decided not to sign more such contracts,” she said, noting that fruit growers in the coded areas should cover their star apples early in order to prevent further fruit fly outbreaks.

Outbound sales of vegetables and fruit in the first quarter of the year are expected to reach US$321 million, a year-on-year rise of 36.9%, according to a Ministry of Agriculture and Rural Development report.

HCMC to continue making advance payment for metro project

The Management Authority for Urban Railways of HCMC has once again proposed the HCMC government make an advance payment totaling VND1 trillion (US$44 million) to pay contractors of the Metro Line No. 1 project.

Although the Ministry of Planning and Investment has made a plan to allocate the State budget, and the project had been 50% completed as of last month, additional capital for the metro line linking Ben Thanh Market in District 1 and Suoi Tien Park in District 9 has not been disbursed.

The ministry explained that the National Assembly has yet to approve the additional capital for the metro line, so the ministry has not disbursed official development assistance (ODA) loans for the project. Under the Law on Public Investment, projects costing VND10 trillion or higher must be cleared by the National Assembly.

At the end of last month, relevant ministries and agencies worked with HCMC authorities to discuss procedures for adjusting up the investment cost of the metro line.

According to a report by the Management Authority for Urban Railways of HCMC, the city’s first metro line had an investment cost of more than VND17 trillion when it first got approval in 2007. In 2011, the central Government allowed the city to revise up the cost to VND47 trillion.

Minister of Transport Nguyen Van The asked the project assessment be done by March as required by the Government and submitted to the National Assembly for consideration in a session in May.

The HCMC government had earlier made two cash advances to pay contractors with one totaling VND500 billion and the other amounting to VND1.17 trillion.

New decree must ensure tight control on Grab, Uber

A Government decree being drafted on conditions for transport service to replace Decree 86/2014/ND-CP must be made strict to ensure effective control, especially regulations on management of ride-hailing services such as Grab and Uber, said Transport Minister Nguyen Van The at a meeting on March 8.

Minister The said the new decree should be formulated in a way that it will have a lifespan of three or four years.

He demanded a board that drafts the decree should introduce tough regulations on Uber, Grab and other similar transport models.

“Uber and Grab are basically transport service which is based on technology to connect riders and drivers. Grab even calls it GrabTaxi, why cannot it called a taxi (transport company)?” he said.

He stressed if Grab and Uber conduct hi-tech business alone, it should be the responsibility of the Ministry of Industry and Trade, not the Transport Ministry, to oversee them.

The board should list responsibilities of Grab and Uber for their driver management, their labor contracts with drivers, and arising incidents, according to The.

In late 2017, Deputy Minister of Transport Le Dinh Tho demanded the decree-drafting board include provisions that treat Grab and Uber as traditional taxi companies to prevent discrimination among businesses which are similar in nature.

Grab and Uber services have been launched on a trial basis in Vietnam for nearly three years, and four localities have allowed for this service, including Hanoi, HCMC, Quang Ninh and Khanh Hoa.

Minister The said the number of Uber and Grab vehicles has been much higher than that of traditional taxis after just a few years. As of the end of 2017, there had been as many as 36,000 autos joining the ride-hailing service.

The minister also stressed safety for passengers using ride hailing service because some drivers have criminal records.

“If Grab and Uber are involved in incidents during their operations, and they shirk their responsibility, it would be unacceptable,” he noted.

The new decree should include safety requirements for Grab and Uber’s passengers. Besides, the ride-hailing companies should provide their fare rates, and pay their taxes in a transparent manner.

“If Grab and Uber do not meet such requirements, they should leave Vietnam,” he declared.

Once the new decree is issued, a pilot scheme for ride-hailing services based on the application of new technology will be put to an end, he said.

Uber and Grab should be seen as traditional taxi firms. They should have representative offices in Vietnam, and register their business activities with local authorities. If they do not satisfy these requirements, they shall not be allowed to operate in the country any more, according to the draft decree.

IPO of four corporations bring over $787 million

The Ministry of Finance said that four corporations have successfully conducted Initial Public Offering (IPO) in the first two months of 2018 with the total revenue of VND17,913 billion (US$787 million).

The four enterprises comprise Binh Son Refining and Petrochemical Company Limited (BSR), a member company of Vietnam Oil and Gas Group; Vietnam Oil Corporation (PVOil); PetroVietnam Power Corporation and Vietnam Rubber Industry Corporation.

According to the ministry, the book value of state capital withdrawal reached VND676 billion ($29.7 million) and obtained value hit VND713 billion ($31.32 million). They comprise VND123 million and VND2 billion from State Capital Investment Corporation (SCIC).

The Government did not sign new loan agreement in February. During the first two months this year it signed two loan agreements worth $29.9 million.

Disbursement of official development assistance (ODA) and preferential loans reached $158 million in February, taking the total number in the first two months to $238 million.

Nawaplastic official boost holding in Binh Minh Plastic to 50 per cent

Nawaplastic Industry Co., Ltd., a subsidiary of Thailand's SCG, bought 99.9 per cent of the offered shares in Binh Minh Plastic JSC (BMP) at the auction organised on March 9.

According to information published by the Ho Chi Minh City Stock Exchange (HSX), two investors joined the auction: Nawaplastic and a domestic individual. As a result, Nawaplastic spent approximately VND2.329 trillion ($102.33 million) to buy 24.139 million shares from the 24.159 million on offer at the initial price of VND96,500 ($4.24).

State Capital Investment Corporation (SCIC) acquired VND2.331 trillion ($102.42 million) in proceeds and Nawaplastic increased its holdings in BMP to 49.9 from 20.4 per cent.

According to experts, Nawaplastic may continue to raise its holdings in BMP via an agreement. BMP is currently permitted to increase its foreign ownership limit to 100 per cent.

The auction this afternoon followed a similar script to the acquisition of Sabeco’s stakes by Thai Beverage.

Notably, at Sabeco’s auction organised on December 18, 2017, only Vietnam Beverage Company Limited, a Vietnam-incorporated unit of Thai Beverage, and a Vietnamese individual registered to join the auction (According to the auction rules, the event would only be organised if at least two investors join).

As a result, Vietnam Beverage Company Limited bought almost all of the offered stake volume (53.58 per cent) at the winning price of VND320,000 ($14.09), equaling the initial price.

Back to Nawaplastic, a wholly-owned subsidiary of Thai Plastic and Chemicals PCL (TPC), it specialises in manufacturing and distributing PVC plastic.

TPC, which is a 90 per cent owned subsidiary of SCG, currently holds 50 per cent of the Thai plastics market, while simultaneously owning numerous plastic manufacturing companies in Vietnam, including Chemteck Co., Ltd. (100 per cent), Viet-Thai Plastchem Co., Ltd. (72.49 per cent), and TPC Vina Plastic and Chemicals Corporation Limited (70 per cent).

Through the acquisition in BMP and Tien Phong Plastic, Nawaplastic would seize their advantages in manufacturing and distribution systems as well as their brands to realise SCG and Nawaplastic’s target to control the construction materials market in Vietnam.

VinaCapital and Maybank Kim Eng host Corporate Day in London

VinaCapital and Maybank Kim Eng Securities co-organised Vietnam Corporate Day in London on March 7-8, introducing top listed firms in Vietnam to 100 institutional investors around the world.
vinacapital and maybank kim eng host corporate day in london

The event was attended by Tran Ngoc An, Vietnamese Ambassador to the United Kingdom, and about 100 institutional investors whose total assets under management exceeds $7 trillion. Senior leaders from the Ho Chi Minh City Stock Exchange and a select few of Vietnam’s listed companies also joined the event, including Coteccons, FPT Retail, HDBank, Phu Nhuan Jewelry, Eximbank, and Vietjet.

The investors listened to presentations from the Vietnamese companies, as well as from the Ho Chi Minh City Stock Exchange, VinaCapital, and Maybank Kim Eng.

In particular, the Ho Chi Minh City Stock Exchange provided a detailed overview of how the Vietnamese capital market has grown and what the next steps in its development will be, while VinaCapital discussed Vietnam’s macroeconomic landscape and where the fund sees opportunities in the market. Representatives from Maybank Kim Eng, meanwhile, provided a more detailed look at Vietnam’s stock markets and the catalysts driving continued growth.

Investors at the Corporate Day event noted that the Vietnamese stock market has become an attractive destination for global funds thanks to solid progress in the equitisation programme of state-owned enterprises and the government’s openness to foreign investment.

More direct discussions between companies and investors were arranged during the last part of the event.

“We are honoured to work with VinaCapital to promote the Vietnamese stock market and some exciting Vietnamese business to the international investment community. The success of Vietnam Corporate Day is a remarkable contribution to enriching investment in Vietnam,” said Kim Thien Quang, CEO of Maybank Kim Eng Vietnam.

Similarly, CEO of VinaCapital Don Lam stated that the event is in line with the fund’s efforts over the past 14 years to promote Vietnam’s growth and facilitate direct discussions between global investors and Vietnamese businesses.

“From the success of Vietnam Corporate Day, I believe more investors will take notice that Vietnam is open for business and participate in more opportunities to take Vietnamese companies to the next stages of growth and improve their competitiveness in the ASEAN and the world,” said Don Lam.

On March 5, the London-listed Vietnam Opportunity Fund, managed by VinaCapital, entered the FTSE 250 Index.

ICAEW signs with Partners in Learning in Singapore and Vietnam

Print EmailRecently, in Hanoi, the Institute of Chartered Accountants in England and Wales (ICAEW) Southeast Asia and four Partners in Learning (PiL) in Vietnam and Singapore signed a Letter of Intent to provide support for Vietnamese students to complete the full Chartered Accountancy qualification in Vietnam and diversify training formats.

For the first time, three independent PiLs of ICAEW in Vietnam, including UHY Training Center AFA Research & Education (AFA) and Vietsourcing Education Group (Vietsourcing), are joining forces to partner up with City Academy, an international PiL in Singapore with experienced Chartered Accountant tutors from the UK, Singapore, and Malaysia.

ICAEW will connect these PiLs and support them to deliver a collaborative project of training students for the professional level of the Chartered Accountancy qualification in Vietnam.

The project aims to enhance and monitor training quality and support PiLs of ICAEW in Vietnam in “training the trainers” for professional and advanced levels in the future. Ensuring a high-quality learning environment for students and supporting Chartered Accountants fully trained in Vietnam is one of the top priorities of ICAEW.

Mark Billington, ICAEW Regional Director, Southeast Asia, said: "The foremost objective of this collaborative project is to ensure the high training quality and good learning outcomes for our ICAEW ACA students trained in Vietnam. We look forward to welcoming the first Chartered Accountants to be fully trained here in the near future. By nurturing such highly qualified Vietnamese finance, accounting, and business professionals, ICAEW hopes to contribute in a real practical way to the development of the Vietnamese accountancy and finance sector.”

The project has a duration of three years with a specific roadmap for enrolment and training of ICAEW ACA students. In parallel with training students, City Academy will support the PiLs by providing teaching resources with the ultimate goal of the PiLS taking on teaching the ACA in their respective countries.

PiLs of ICAEW in Vietnam and ICAEW Vietnam will be in charge of the enrolment and organisation of courses. City Academy will provide tutors, develop curricula, and enable students to access and use the reference materials of City Academy. The tutors of PiLs in Vietnam will support their foreign counterparts in providing instructions, reviewing, and marking tests for students during their learning process. The Vietnamese tutors also have full use of the training materials of City Academy for reference. The first course is expected to be launched in July 2018.

Founded in the UK in 1880, ICAEW is a world-leading professional membership organisation connecting over 149,000 chartered accountants worldwide, providing this community of professionals with the power to build and sustain strong economies. By training, developing, and supporting accountants throughout their career, ICAEW gives them the expertise and values to meet the needs of tomorrow’s businesses.

PetroVietnam exceeds targets
     
Most of the production and business targets of Viet Nam National Oil and Gas Group, better known as PetroVietnam, has exceeded the plan for the first quarter.

PetroVietnam faced many difficulties and challenges since the beginning of this year, but the group and its members managed to efficiently implement their production and business plans. Most of the group’s production and business targets exceeded between 4-15 per cent against the plan for the first quarter.

In the first two months of the year, the group achieved 4.13 million tonnes of crude oil, 3.56 billion kWh of electricity, 281,800 tonnes of nitrogenous fertiliser and 13 million tonnes of petrol products.

Meanwhile, the group’s financial indicators were also higher than those in the same period in 2017. Its total revenue reached a growth rate of 12 per cent compared to its plan and was 16 per cent year-on-year. Its tax payment had a surge of 30 per cent against its plan and was 12 per cent year-on-year.

At the meeting, PVN chairman Tran Sy Thanh highly appreciated the production and business results of the group in general and member companies in particular.

Thanh said the member companies and the group’s departments must continue to coordinate with each other and focus on implementing the key tasks. The good results in production and business in the first quarter will be basic to completing all key targets for the entire year, he said.

To complete its production and business targets, the group continues to maintain strict control on the development of mines and works that will become operational in 2018. At the same time, the group also plans to control and have safe and stable operations of its oil and gas plants.

The group aims to direct and successfully organise shareholder meetings for 2018 in its member companies and continue to divest capital in enterprises during 2017-20, according to a plan approved by the Prime Minister.

One of PVN’s key tasks in the next few months is to continue solving problems of five weak projects and promote the development of gas-fired power projects and thermal power projects, such as Long Phu 1, Song Hau 1 and Thai Binh 2. 

Fish catches, aquaculture harvests rise
     
The total fish catch in the country reached 496,900 tonnes in the first two months of the year, up 1.2 per cent year-on-year, according to the Ministry of Agriculture and Rural Development.

Marine fishing increased by 2.2 per cent to 473,900 tonnes while the inland catch declined by 14.8 per cent to 23,000 tonnes.

Many provinces and cities have reported good catches because of favourable weather and the appearance of large quantities of fish after Tet (Lunar New Year).

In the central region, fishermen reported bumper catches of many species like anchovy, creamfish, mackerel, yellowfin flying fish, and tuna.

In the south-central province of Ninh Thuan, Ca Na Fishing Port in Thuan Nam District has been busy as boats have been arriving filled with fish since Tet.

Than Thi Hoai An, owner of a fishing boat in Thuan Nam’s Ca Na Commune, said her boat caught around 200 baskets of anchovy -- of 16kg each -- on the first night of fishing after Tet.

It earned a profit of VND30 million (US$1,300) from the trip, she said.

Duong Van Tuyen of the Ca Na Fishing Port management said fishermen in Thuan Nam District have got bumper catches this year.

The port has been receiving 40-50 boats a day since February 19, he said.

Many boats have caught 200-300 baskets of anchovy a night, he said.

The weather was unfavourable for fishing before Tet and many boats could not go fishing, but it became favourable after the festival, he said.

In the Cuu Long (Mekong) Delta province of Bac Lieu, the ruoc (a species of small shrimp) catching season has begun and fishermen are earning high profits because of good catches.

In Bac Lieu City, fishing boats caught 100-300kg of ruoc each in just 2-3 hours.

Traders bought the shrimp at VND15,000–20,000 per kilogramme.

Nguyen Van Hai of Bac Lieu’s Nha Mat Ward said his boat earns a profit of VND4-5 million ($170 - 220) a day from ruoc.

The aquaculture harvest in the first two months has topped 551,000 tonnes, up 5.8 per cent year-on-year, according to the ministry.

The output of tra fish, black tiger shrimp and white-legged shrimp all increased.

The delta, the country’s largest tra producer, harvested 163,300 tonnes of the fish, up 8 per cent.

Its prices have reached record highs of VND28,000–29,500 a kilogramme because of booming exports.

The delta harvested 29,800 tonnes of black tiger shrimp, up 8.1 per cent. 

Nghe An asked to double economy by 2025
     
Prime Minister Nguyen Xuan Phuc has asked the central province of Nghe An to work harder to double its economic revenues by 2025, to ensure its becoming a locality generating high incomes throughout the region.

The Government leader made the request while addressing the 10th annual meeting of investors conference in Nghe An on Saturday, which drew a large number of domestic firms and foreign businesses from various countries, including Thailand, Japan, the Republic of Korea and Australia.

Lauding the local government’s efforts and strong determination to attract investment, the Prime Minister said that Nghe An’s experience is also helpful for other localities in promoting investments.

He noted that the determination of both the local government and investors has made Nghe An an attractive destination for businesses with large projects, showing the positive combination between domestic and foreign-invested capital resources.

The PM noted that Nghe An has a number of favourable qualities encouraging development in all fields, including its location as a transit point for the northern and southern economic regions, as well as having a population of nearly four million.

The province ranked 25th out of 63 localities in the 2016 provincial competitiveness index, seven positions higher than 2015, he noted, adding that many other indications, including those on market engagement and labour training, also increased.

However, the province’s performance in unofficial costs and land use remained modest, he noted, asking the locality to continue improving its investment and business environment, in a bid to lure more investors.

The PM also urged Nghe An Province to continue building a dynamic, action-oriented and dialogue-willing government with better services for investors, while fully implementing commitments with investors and remaining prepared to respond to their requests.

Nghe An should join neighbouring Thanh Hoa and Ha Tinh provinces to create growth with modern industry and smart agriculture, and play the role of the driving force for the inclusive growth of the northern central region and, in the near future, for the country as a whole.

He underlined that the province needs to tap its advantages in location to draw more investment, technology and high quality human resources, while encouraging and creating favourable conditions for the growth of support industries and other related sectors.

Although industry and services play a more important role in the economy, Nghe An Province should comprehensively develop agriculture, with the focus on biological, organic and hi-tech agriculture, considering it a strength and a firm basis for the locality to grow sustainably, PM Phuc said.

Further, the locality should pay attention to early upgrading of the Thanh Thuy border gate and Vinh airport, to offer international flights, to attract investment from the private sector, especially in the infrastructure of industrial zones, seaports and airports, and work to hasten the progress of a highway project that will help reduce the travel time from Ha Noi to Nghe An to 2.5 hours.

The Government leader stressed the need for the province to improve the quality of education and carry out policies to draw investment in high-quality universities and vocational schools in the fields of information technology, bio-technology, and manufacturing technology, as well as encourage the involvement of both domestic and foreign intellectuals in economic development.

He also requested ministries to study and submit to the Government appropriate policies and mechanisms to connect the north central and central economic regions, along with Nghe An, in particular, to mobilise the maximum resources and improve the business and investment environment in order to help Nghe An and neighbouring Ha Tinh Province to grow stronger in the future.

He also asked investors to realise their commitments, combine economic development with environmental protection, and ensure the interests of labourers.

This year’s conference continued to attract numerous large investment projects in Nghe An. The province granted investment licences to nine projects, and signed 16 memoranda of understanding on investment cooperation, with a total registered capital of VND13.1 trillion (US$576.4 million).

The Bank for Investment and Development of Viet Nam (BIDV) and the Sai Gon-Ha Noi Commercial Joint Stock Bank (SHB) handed over three agreements providing credits worth VND800 billion.

On the same day, the Government leader offered incentives at the Dong Loc T-junction Relic Site to commemorate the then female youth volunteers who died while on duty at the T-junction during wartime in Can Loc District, Ha Tinh Province.

He also paid tribute to late President Ho Chi Minh at the Nghe An’s Kim Lien historical site. 

HCM City develops support industry

In March, the Department of Industry and Trade of Ho Chi Minh City will chair a meeting with the Ho Chi Minh City Export Processing and  Industrial Zones Authority and the Saigon Hi-tech Park to organise a festival to seek support industry suppliers.

The event will enable enterprises to seek more partners at home and abroad, improve supply capacity, expand production and engage in the global supply chain. 

According to the organising board, 16 businesses operating in various fields such as electronics, automobile and mechanics want to find domestic suppliers.

The event is seen as among an array of measures the southern economic hub of Ho Chi Minh City is deploying to develop its support industry and improve product quality to join production chains of foreign direct investment (FDI) businesses.

The municipal Department of Industry and Trade proposed the city’s People’s Committee promulgate Decision No.15/2017/QD-UBND dated March 16, 2017 to help businesses and complete a project on support industry development through 2020.

The department suggested implementing policies encouraging investment in support industry to reduce imports and increase the ratio of locally processed and assembled products.

It recommended building communication programmes to promote outstanding industrial products and create unique ones to call for investment, as well as encouraging firms to renovate and increase productivity.

Director Pham Thanh Kien said the department will help businesses access land and connect them with foreign firms to establish a sustainable support industry network.

In 2018, the department will strengthen coordination with business associations to support firms operating in industrial and hi-tech parks, he added.

The HCM City Centre of Supporting Industries Development will work to boost links between local firms and FDI partners from Japan, the Republic of Korea and the EU through the programme “Developing good suppliers”.

In 2017, the city promulgated Decision 15 on financial assistance for industrial enterprises. Each would be able to get a loan of up to 200 billion VND (8.81 million USD) for a project. To date, three out of 11 projects have been approved to receive the total assistance funds of 200 billion VND.

Vietnam has important role in Japan’s CP TPP strategy: Japanese expert

Vietnam, as a big economy in ASEAN in terms of both trade and investment, has an important role in Japan’s strategy involving the Comprehensive and Progressive Trans-Pacific Partnership (CP TPP), according to a Japanese expert.

Prof. Koichi Ishikawa from the Institute of Asian Studies under the Asia University, Japan, said in the context of the US, an ally of Japan, withdrawing from the TPP and seeking bilateral free trade agreements (FTAs), Japan had made successful efforts to push for the CP TPP.

He told the Vietnam News Agency in an interview on the occasion of the CP TPP signing that the Japanese government estimated that the deal with 11 members would contribute to expanding Japan’s GDP by 1.49 percent. In case it has 12 members, the figure would be 2.49 percent.

Ishikawa said the GDP expansion for Japan with the CP TPP without the US would be smaller, but 1.49 percent was still a significant figure for the Japanese economy, considering the recent low growth rate.

He noted that the CP TPP issues many new regulations in the fields of e-commerce, products’ origin, intellectual property and State-owned enterprises, therefore the deal is dubbed an FTA of the 21st century and a model for future FTAs in the world.

According to Ishikawa, the CP TPP would be an effective tool to curb the spread of US protectionism policies.

Canadian minister underlines Vietnam’s role in CP TPP negotiation

Vietnam plays an important part in the negotiation for the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CP TPP), according to Canadian Minister of International Trade Francois – Philippe Champagne.

In an interview granted to the Vietnam News Agency on the sidelines of the official signing of the CP TPP in Chile, the Canadian minister spoke highly of the leadership of Vietnam’s Prime Minister and Minister of Industry and Trade during the process.

Canada wishes to consolidate the relationship with Vietnam, he noted, adding that with CP TPP, the two nations can increase their trade exchange, particularly between small- and medium-sized enterprises of the two nations.

Canada and Vietnam will collaborate to ensure that the agreement will be effective and benefit people in line with commitments stated in the deal, the minister said, adding that he hopes the two countries will start with cutting tariffs to facilitate trade exchange.

He expressed his delight when Canada, together with Vietnam and other member nations, will establish regulations on trading in Asia-Pacific region in a fair, progressive and open manner, thus facilitating win-win, fair and balanced trade exchange.

Explaining the deal’s concepts of “comprehensive” and “progressive” initiated by Canada, the minister said the CP TPP aims to benefit not only big companies but also the people, adding that anyone can trade with new markets.

According to the Canadian minister, the CP TPP will benefit Vietnamese and Canadian people alike. The world will consider it a model for progressive and inclusive trade, he said.

The official signing of CP TPP took place in Santiago de Chile on March 8 (local time), with the participation of representatives from 11 member countries, namely Chile, Australia, Brunei, Canada, Malaysia, Mexico, Japan, New Zealand, Peru, Singapore and Vietnam.

CP TPP was launched a year ago after the US withdrew from the Trans-Pacific Partnership (TPP) agreement.

The content of CP TPP was basically unchanged from the original TPP with 8,000 pages, except for the suspended implementation of 22 provisions mainly related to intellectual property. It sets high criteria in numerous fields, including labour, the environment, intellectual property, digital economy and cyber security.

The pact will create one of the world’s largest free trade blocs with a combined market of 499 million people and GDP of around 10,100 billion USD, accounting for 13.5 percent of the global GDP.

The pact will come into force 60 days after it is fully ratified by at least six of the 11 members.

Vietnam wants exclusion from US’s steel tariff

The Ministry of Industry and Trade (MoIT) of Vietnam has urged the US Government to consider excluding Vietnamese products from its newly announced tariff measures on imported steel and aluminium. 

The ministry stressed that Vietnamese steel and aluminium products are sold to the US are intended for use in civil construction, not for infrastructure or security-defence purposes, thus not affecting the US’s goal of ensuring national security.

Moreover, Vietnam’s steel and aluminium products account for just a marginal proportion in the US’s import of those products, therefore they neither cause nor threaten to cause any damage to the US steel and aluminium industries, the MoIT said.

The ministry will continue to keep close watch of the situation and consider subsequent actions to ensure the legitimate interests of Vietnamese enterprises while maintaining the growing trend of the comprehensive partnership between Vietnam and the US.  

US President Donald Trump on March 8 signed proclamations to impose a 25-percent tariff on imported steel and a 10-percent tariff on aluminum.

Vietnam exports clean vegetable farming technology to Singapore

Vifarm Vietnam company signed an agreement with DL Edvance of Singapore on March 10 to transfer its clean vegetable farming model using high technology to Singapore.

With this deal, Vifarm has become the first Vietnamese company to export clean vegetable farming technology to Singapore.

Speaking at the signing ceremony, Vifarm Director Cao Nhat Anh Tu said the application of high technology in traditional agricultural production will help the production of clean vegetables and agricultural products in Singapore to be more effective, generate more output on the same farming area, and minimize management, operation and cultivation costs.

Through this cooperation, DL Edvance will also assist Vifarm to build brand names and bring Vifarm’s products, including agricultural and technology ones, to the global market, he added.

An executive of DL Edvance said the technology that Vifarm is applying does not consume much energy. It is a fully automated system helping to boost cultivation efficiency in a limited farming area and ensuring that products are clean.

He expressed his wish that the model will be applied not only in Singapore but also in other countries, adding that his company is working with some partners in regional countries so as to soon implement this model this year.

Vifarm owns some advanced farming technologies such as the farming systems without soil and irrigation, through which cultivation conditions are controlled by computers and Internet of Things devices.

Construction started on another AEON mall in Hanoi

Construction of another AEON mall started in Hanoi’s Ha Dong district on March 11 in the presence of Chairman of the municipal People’s Committee Nguyen Duc Chung.

The complex, covering nearly 98,000 square metres of land in Duong Noi ward, is scheduled to operate in 2019. It will have one basement and three floors, with a combined floor area of nearly 150,000 square metres, being able to accommodate 200 shops, including an AEON supermarket.

Addressing the ceremony, Akio Yoshida, Director of the AEONMall Company, highlighted the significance of the project to his company, pledging that his company will bring its expertise, experience, passion and dedication to contribute to the community’s development.

Ha Dong AEON Mall, with the vision of “Making the future for Ha Dong district”, is expected to become the biggest trade centre in the area, he said.

Japanese Ambassador to Vietnam Kunio Umeda said that the project will contribute to not only improving the living standards for local resident but also promoting the cooperation between Vietnam and Japan. 

Japan wants to cooperate with Vietnamese organisations and individuals, thus strengthening the Japan – Vietnam comprehensive partnership, he said.

Speaking at the ceremony, Vice Chairman of the municipal People’s Committee Nguyen Doan Toan said the year 2018 marks the 45th anniversary of the Vietnam – Japan diplomatic ties, a milestone in the cooperation and friendship of the two nations.

Currently, Japan is the second biggest foreign investor in Hanoi, with 959 projects, worth around 5.38 billion USD; and the third biggest trade partner of the city with the two-way trade value reaching nearly 4 billion USD.

The building of Ha Dong AEON Mall proves the city’s sound policy on mobilising and facilitating foreign resources for trade infrastructure development.

The facility is expected to become an attractive shopping and recreational destination for Hanoi people, and contribute to boosting socio-economic development of the west area of Hanoi, Toan said.

Ha Dong AEON Mall is the second trade centre invested by the Japanese AEONMall Company in Hanoi, following the first one in Long Bien district. It is the fifth of its kind nationwide.