Tra fish decree to be amended

The Government has ordered relevant agencies to review and propose amendments to the regulations on the moisture content of export tra fish (Pangasius) fillets and the ice-to-fish ratio in Decree 36/2014/ND-CP in July.

The order came after enterprises and experts had complained about the hard-to-apply regulations in the Government’s decree on tra fish farming, processing and export. This is confirmed by Pham Anh Tuan, deputy head of the General Directorate of Fisheries under the Ministry of Agriculture and Rural Development.

Tuan told the Daily that before the decree is amended, the agencies will look into the moisture content and ice-to-fish ratio of unprocessed tra fish and tra fish fillets at local seafood enterprises.

“Ministries and agencies will revise the regulations based on surveys of the moisture content and ice-to-fish ratio,” Tuan said.

He added that competent agencies will also look into the requirements of importers and the markets for Vietnamese tra fish.

Decree 36, which is widely known as ‘tra fish decree’, requires seafood processors to ensure the moisture content of 83% and a 10% ratio of ice to fish.

“Importers have hailed Vietnam’s effort to raise product quality. Different markets apply different quality standards, and this will be included in the amendments,” Tuan said.   

Decree 36 took effect on June 20 last year but the Government approved the regulations on the moisture content of 83% and ice-to-fish ratio of 10% to be enforced on December 31 to give firms more time to prepare for the changes.  

Again, the Government gave the nod to the agriculture ministry to delay the deadline to December 31 this year after many exporters argued that not many importers set such moisture content and ice-to-fish ratio requirements.

Therefore, the Government told relevant agencies to consider amending the regulations to respond to the reality.

The Vietnam Association of Seafood Exporters and Producers (VASEP), Vietnam posted tra fish export revenue of US$356.8 million in the first three months of this year, up 12.7% year-on-year.

Up to 75.9% of Vietnam’s total tra fish fillets exported to Europe, ASEAN, the U.S., China, Hong Kong, Mexico, Columbia, Canada and Australia accounted for in January-March.

Ministries race to step up SOE equitization

A number of ministries are racing against time to carry out plans to let State-owned enterprises under their umbrella go public so as to meet the Government’s target of equitizing and divesting State capital from 289 enterprises this year.

The Ministry of Transport reported to the Government late last month that it approved equitization plans and establishment of steering committees for equitization for 28 enterprises and two holding companies in the first four months of this year. The number included 24 subsidiaries of Vietnam Railway Corporation.

The ministry has completed State capital divestments at Civil Engineering Construction Corporation No. 1 (Cienco 1), Cienco 4 and Quang Ninh Port Joint Stock Co. It has sold a 20% State holding at Transportation Design Consultancy Corporation (TEDI) and is proceeding with plans to sell State stakes at Doan Xa Port Joint Stock Co., Quy Nhon Port and seven subsidiaries of Vietnam Railway Corporation.

The ministry has asked the Prime Minister for approval to sell all State stakes at Cienco 5, Cienco 6 and Vietnam Motors Industry Corporation (Vinamotor) to investors through direct negotiations as well as reduce State ownership at the enterprises under Vietnam National Shipping Lines (Vinalines) and Vietnam Railway Corporation.

In the first quarter of this year, the ministry passed equitization plans and sought the Prime Minister’s nod for 29 enterprises with a total face value of VND4.3 trillion (less than US$199 million).

Last year, the number of equitized enterprises under the ministry accounted for 53.4% of 143 SOEs going public nationwide.

The Ministry of Construction has put the equitization of enterprises under its management on fast track. It also plans to have no more 100% State-owned businesses at its helm by the end of this year.

In 2015, the ministry plans to have some 170 enterprises equitized with a total value of less than VND5.26 trillion (around US$243 million).

As of last year, 57 enterprises under the construction ministry had sold shares worth a total of VND2.52 trillion. The total value in the first quarter of this year was VND102 billion, or VND81.6 billion lower than book value.

Equitization is also underway at Song Da Corporation, Vietnam Machinery Installation Corporation (Lilama), Hancorp, Idico, Coma, Bach Dang Corporation and Fico.

However, equitization has been moving at a snail’s pace at SOEs managed by the Ministry of Agriculture and Rural Development. Last year, the ministry equitized only nine entities in sugar production, veterinary and seafood sectors.

The agriculture ministry sent the Prime Minister plans to equitize tea, fruit and vegetable, and farm produce corporations in the first three months of this year.

The ministry looks set to complete schemes to restructure Vietnam National Coffee Corporation and Vietnam Rubber Group by June this year. Next year, the ministry will report to the Prime Minister a scheme to restructure Vietnam Northern Food Corporation (Vinafood 1) and its holding firm and two subsidiaries.

Long Thanh airport area to be halved

The planned area of the Long Thanh international airport in Dong Nai Province could be cut by half as part of a plan to revise down the cost of this megaproject in the southern province.

The province said at a meeting on site clearance, compensation and resettlement for the project last Friday that Airports Corporation of Vietnam (ACV) has informed of the Ministry of Transport’s plan to adjust down the project’s area from 5,000 hectares to 2,750 hectares.

The 2,750 hectares will be for key components of the project while those for defense purposes and the civil aviation industry will not be taken in account in the project’s total area when funding is projected given concerns about the country’s rising public debt, according to ACV.

With the area adjustment, Dong Nai Province has drawn up two site clearance plans, heard the meeting.

Under the first plan, the project would require US$18.7 billion for the development of three phases in an area of 5,000 hectares, and site clearance and resettlement would cost over VND13 trillion.

Dong Nai Province has zoned two resettlement areas with Loc An-Binh Son covering 282.35 hectares and Binh Son 282.3 hectares for the households affected by the project. The cost of these resettlement areas is put at VND5.39 trillion funded by the State budget.

With the second plan for 2,750 hectares, the investment of the airport project is lowered to about US$15.8 billion and the province will need around VND8.56 trillion for site clearance and resettlement.

Loc An-Binh Son resettlement area alone will meet the resettlement demand in accordance with the second plan. The resettlement area would cost about VND2.7 trillion, also sourced from the State budget.

The province will arrange jobs at industrial parks for those people whose land is taken back to make room for the airport project.

Dong Nai will have 35 industrial parks covering a total area of 12,012 hectares in line with the master zoning plan for industrial parks until 2015 and a vision towards 2020 approved by the Government. Of the total number, 31 have been developed in the province.

The province estimated around 61,530 jobs would be created when infrastructure development of the four remaining industrial parks is finished.

Besides, implementation of the Long Thanh airport project would need 20,000 laborers, with unskilled accounting for around 75%. Therefore, the province expected sufficient jobs would be provided for the families whose land is cleared for the airport.

Tran Van Vinh, vice chairman of Dong Nai Province, said the province has virtually finished procedures for the resettlement areas. Once the National Assembly approves the airport project, the province will propose dividing site clearance and resettlement into a sub-project for the province to carry out.

The drafting of policies related to site clearance, resettlement, vocational training and job creation for locals will be completed next month for submission to the Government for consideration and approval.

As envisaged, the international airport would have one runway and one terminal able to handle 25 million passengers per year in the first phase. The airport is designed for 100 million passengers annually.

TPC: Indonesia potential market for Vietnam firms

The HCMC Investment and Trade Promotion Center (ITPC) has called for Vietnamese enterprises to prepare plans to tap into the potential of Indonesia’s market, especially after the ASEAN Economic Community (AEC) is established later this year.

Indonesia’s growing trade with Vietnam will offer more opportunities for local enterprises, heard a seminar on entry into the Indonesian market in HCMC last Friday.

ITPC deputy director Ho Xuan Lam told the seminar that two-way trade between Vietnam and Indonesia last year neared US$5.4 billion, up 11.5% compared to 2013.

Nguyen Anh Ngoc, vice chairman of the Vietnam-Indonesia Friendship Association in HCMC, said bilateral trade in the first two months of this year picked up 66.16% year-on-year to over US$900 milllion with Vietnam’s exports up 45.54% to US$563 million.

Phones and phone parts, and steel products were Vietnam’s major items shipped to Indonesia in January-February with total sales of over US$199 million and over US$95 million respectively.

Meanwhile, Vietnam imported nearly US$340 million worth of products from Indonesia and the major import items were wooden products and phamarceuticals.

Ngoc said Vietnamese enterprises should manage to speed up shipments of rice, crude oil and vegetables, seafood and other products for which Indonesia’s producers do not meet demand.  

“Indonesia’s rice production is not enough for local demand and this is a big opportunity for Vietnamese firms,” Ngoc said.

He noted Indonesia imported more than 960,000 tons of rice worth over US$496 million from Vietnam in 2013, equivalent to 18.29% of Vietnam’s total rice exports.

As Indonesia is the world’s fifth biggest fresh food market, it is a good market Vietnam’s food producers, according to Ngoc. Indonesia’s retail market also holds much potential.

According to Halal Vietnam Export and Import Co. Ltd., Indonesian people are mainly Muslims and thus Halal certification will be a pass for Vietnamese enterprises and their products to enter the market.

Central bank: Tackling debts of agricultural firms hard

The central bank has found it hard to draft new regulations on handling debts of agricultural and forestry enterprises to support the Ministry of Agriculture and Rural Development’s plan to restructure enterprises under its umbrella.

At a review meeting on restructuring State-owned enterprises (SOEs) in the first quarter of this year, the Government urged the State Bank of Vietnam to collaborate with the Ministry of Finance to propose adjustments to the mechanism for dealing with the overdue principal and interest owed by agricultural and forestry enterprises to facilitate the ministry’s restructuring plan.

The plan aims to restructure State-owned agricultural and forestry enterprises under localities and the ministry and transform them into joint stock companies to improve their operations.

The central bank was told to draft a guidance circular for settling the debts of agricultural and forestry enterprises in accordance with the Government’s Decree 118/2014 on restructuring and development of enterprises in these sectors.

The central bank said in a report late last month that it is improving the draft circular but stressed that problems have arisen as there have been regulations on settling debts of SOEs including agricultural and forestry enterprises. New rules will overlap the existing ones.

The central bank also said that it proposed not adding its duty to tackle the debts of agricultural and forestry enterprises at the time the decree was being drafted as these were regulated in many legal documents.

Importantly, it is the lenders who decide to reschedule, reduce and write off old loans and interest for agricultural and forestry enterprises. Selling debts or turning them into capital contributions are regulated in the existing rules.

If enterprises change forms of ownership, the successors have to pay debts for lenders.

The Prime Minister will consider settling debts for agricultural and forestry enterprises in case they go bust and do not have assets for debt settlement.

HCM City to cut investment approval time

HCMC will continue to streamline administrative procedures in a fresh bid to help local and foreign investors save time and money.

The HCMC government has told the HCMC Department of Planning and Investment and relevant agencies to do reviews and abolish unnecessary procedures in the approval process.

The department and relevant agencies will not have to ask for comments of district-level authorities when processing applications and granting investment certificates for training facilities, dental services and health facilities.

Besides, the agencies do not need to consult other departments for the investment applications in the fields they manage.

Regarding investment certificate adjustments, the department is not required to seek comments of the city’s tax and customs authorities on tax liabilities and other issues. It will forward to the city government investors’ applications for extending the operation lifespan of projects.  

The city will soon launch an information technology system to manage foreign investments.

From this month, competent agencies will have to update the progress of handling applications for foreign investments on their websites as well as the number of applications on time and behind schedules and reasons for lateness.

Notably, the city will send applicants letters of apology for the late processing of their dossiers.

At dialogues between leaders of HCMC and representatives of foreign-invested enterprises earlier, the city’s vice chairman Le Manh Ha said it still took much time to process investment applications.

Ha attributed the time consuming process to the fact that the city had to wait long for feedback from ministries and agencies, and some cases took more than a month. The limited application of information technology in processing administrative procedures is to blame for the delay of application processing for investors.

Long Thanh airport gets green light from Party

Party General Secretary Nguyen Phu Trong said the Party Central Committee had underscored the need to develop a new international airport in Long Thanh, Dong Nai Province, paving the way for the implementation of this multi-billion-dollar project.

Trong said at the closing of the 11th plenary session of the 11th Party Central Committee in Hanoi yesterday that the project is crucial to the country’s socio-economic development.

He said the Party Central Committee examined all the issues in a report submitted by the Party Committee of the Government on the Long Thanh airport project.

However, the Party chief said the Party Central Committee required preparation improvements for the project with a focus on clarifying conditions for Long Thanh to become an international hub given rising competition from other airport hubs in Southeast Asia, investment efficiency in line with the development of Vietnam’s aviation market and capital raising.

He told the opening of the four-day plenum on Monday that the Party Central Committee would weigh the need and viability of the project and related issues like land allocation, site clearance, resettlement and jobs for affected families, selection of technology and operation models, socio-economic efficiency, and a special mechanism for the project.

The Party Central Committee would highlight orientations for the Long Thanh airport project for the National Assembly to consider and give approval in principle to it.

According to the Ministry of Transport, the airport project would need a total investment of around US$15.8 billion, with the first phase costing around US$5.2 billion. ODA loans are expected to account for VND29.18 trillion, the State budget for VND12.15 trillion, and other sources for VND68.64 trillion.

The first-phase airport would have one runway and one terminal able to handle 25 million passengers per year. The second runway and terminal would be built in phase two to increase the capacity of the airport to 50 million passengers a year before its annual handling capacity rises to 100 million passengers.

At the closing session, the Party chief emphasized that a personnel plan for the 12th Party Central Committee was discussed thoroughly.

He said the Party Central Committee will do its utmost to select qualified candidates for the next term and eliminate those candidates showing signs of having connections with interest groups or being involved in corruption cases, being greedy for power and conservative, and owning many properties without clear origins.

Lam Dong looks to 1.5 million tourists from delta

The Central Highlands province of Lam Dong expects to welcome 1.5 million travelers from the Mekong Delta region in the coming time after an air route linking Dalat City with Can Tho City was launched.

Vietnam Air Services Company (Vasco) operated its maiden flight on the route on May 7, carrying 67 passengers on an ATR-72 aircraft from the Mekong Delta city to Dalat.

“Our ambition is to raise the number of tourists from the Mekong Delta by 1.5 times,” said Nguyen Thi Bich Ngoc, deputy director of Lam Dong Province’s Department of Culture, Sports and Tourism. “Both localities should promote tourism products.”

Last year, Lam Dong attracted 4.8 million visitors, including one million from the Mekong Delta region.

According to surveys of the tourism department of Lam Dong Province and Vietravel, southern travelers are fond of Dalat but they are concerned about a 12-hour bus ride between the city and the Mekong Delta. Meanwhile, it takes only one hour to travel by air, she said.

Vasco aircraft conducts Can Tho-Dalat flights on Thursdays and Sundays in the initial time. One-way tickets start from VND999,000.

Vasco and partners will consider more flights between Can Tho and Dalat cities and more routes if the number of passengers increase in the next three months, Le Tuan Huy, director of Vasco in Can Tho City, told the Daily.

Vietravel and other travel agencies launched tours taking in Can Tho, Dalat, Nha Trang and Madagui Forest Resort with prices starting from less than VND3.2 million.

Last month, Vasco signed a partnership agreement with local tour operator Vietravel in Can Tho City for the air service launch with support of the governments of the two cities.

Nguyen Quoc Ky, general director of Vietravel, told a news briefing on April 23 that Vietravel would partner with other localities in the Mekong Delta region to promote new tours to further tap into tourism potential in the region.

Dao Anh Dung, vice chairman of Can Tho City, said the number of passengers going through Can Tho Airport had increased significantly. The airport handled 305,500 passengers last year, up 28% year-on-year, and 105,279 passengers in the first quarter of this year, rising by 18% against the same period last year.

Can Tho Airport was put into use in 2009. It now handles flights from and to Hanoi, Danang, HCMC, Phu Quoc Island off mainland Kien Giang Province, Con Dao Island off mainland Ba Ria-Vung Tau Province and Taiwan.

UBS: Vietnam an exciting market in Asia

Vietnam is potentially one of the most exciting markets in Asia, UBS Bank in a recent report said and suggested the nation address issues such as share supply and foreign ownership limit to attract more foreign investors.

In the report, UBS’s global research team gave a number of advantages for Vietnam’s market. It said the country has a large, young population and almost 50% of Vietnamese are under 30 and its gross domestic product (GDP) per capita is comparable to India and the Philippines, with similar potential for rapid growth.

Competitive wages are attracting significant new foreign direct investment (FDI), notably in electronics. Internet penetration of 40% should support growth in ‘disruptive’ companies, which can boost productivity.

Macroeconomic stability was restored in 2012 and interest rates have fallen proportionately. While restructuring of the banking sector and State-owned enterprises remains a work in progress, banks are lending again and GDP growth in the first quarter of 2015 was above expectations, at 6%.

Looking ahead, UBS said Vietnam is potentially the largest beneficiary of the Trans-Pacific Partnership (TPP) and the Regional Comprehensive Economic Partnership (RCEP), which are being negotiated. Furthermore, important new legislation taking effect in 2015 regarding foreign ownership of property, bankruptcy and enterprises should help restructuring and support growth.

However, it said risks of Vietnamese equities include rising public debt, a repeat of high inflation and a political transition in the next 12 months.

“The biggest deterrent for foreign investors is not value, but supply, in our view. There are almost 700 listed companies in Vietnam, but 90% have a market capitalization below US$100 million. Of the remaining 10%, we estimate the total available room to be only US$3.2 billion, concentrated in a small number of financials,” the report said.

Beyond the foreign ownership limit, a number of companies have small free floats. In the case of PetroVietnam Gas Corp., the largest publicly-traded company in Vietnam by capitalization, the free float is only 3%. Some banks have also floated a small part of its shares on the market.

In addition, the foreign ownership limit on Vietnamese companies is 49%, and for many popular companies the limit is already full. The absence of a foreign board where companies can trade at a premium the local shares makes finding stocks difficult.

“A proposal by the stock exchanges to raise the foreign ownership limit to 60% was blocked in early 2014. However, a number of investors and securities companies we spoke with believe it is possible Vietnam could adopt a structure similar to Thailand’s Non-Voting Depository Receipts,” UBS said.

“If it were to do so, it could unlock potentially significant additional foreign demand, and lead to a re-rating of Vietnamese equities. However, there is no indication of when, or if, Vietnam will adopt such a structure,” the bank added.

Secondly, Vietnam is currently classified as a ‘frontier’ market, not an ‘emerging’ market. So, it has yet to draw attention from investors like Korea, Japan and Thailand.

As a percentage of GDP, the total market cap of Vietnamese equities is currently 30%. By comparison, Thailand and the Philippines are trading at 116% and 95% of their GDP respectively.

In February, Vu Bang, chairman of the State Securities Commission (SSC), said that SSC was revising Decree 58 guiding the implementation of the Securities Law. Foreign holding increase is the most important issue of the decree.

SSC expected to issue the decree in the second quarter of this year to better foreign capital attraction, Bang said.

Turkey launches anti-dumping investigation into Vietnam’s yarns

The General Directorate of Imports under the Turkish Ministry of Economy has recently filed an anti-dumping investigation into spun polyester yarns imported from some countries including Vietnam.

The agency announced it has received a petition from domestic fibre manufacturers, claiming that some products have been imported into Turkey at substantially reduced prices and made a negative impact on the domestic industry.

It found in the petition sufficient proof to launch an anti-dumping investigation into spun polyester yarns imported from some nations including Vietnam.

According to the Vietnam Competition Authority (VCA), Vietnam’s spun polyester yarns exported to Turkey over the past three years has been relatively large, valuing at some US$120 million per year and accounting for 20% of total yarn imports into the Turkish market, only after China and India.

Currently, Turkey is imposing an anti-dumping tax of some US$48-351 per tonne on imports from China, Indonesia and Malaysia in a period of five years since December 17, 2014.

The VCA said this is the third time Turkey has filed an anti-dumping lawsuit against yarns imported from Vietnam.

Earlier, Turkey imposed anti-dumping taxes on Vietnam’s synthetic staple fibres and polyethylene/polypropylene yarns. So far, the country has filed five anti-dumping lawsuits against imports from Vietnam.

FLC to start building resort in Binh Dinh

The FLC Group will start the construction of Nhon Ly resort, villas and a high-end entertainment complex in the southern Binh Dinh province's Quy Nhon City on May 19, just a month after receiving an investment licence.

The VND3.5-trillion (US$162 million) project will have golf courses, six-star villas, hotels, five-star restaurants, as well as an international convention centre and a high-class entertainment area on around 300ha.

The complex is scheduled to become operational during the first quarter of 2016.

Viet Capital Bank offers online bill payments

Viet Capital Bank has launched online bill payment services, enabling customers to pay their electricity, water, Internet, cable TV, mobile phone, and landline bills on the internet.

To use the service, customers need to open a dong current account and register for its Internet Banking or Mobile Banking service.

According to banks, more and more customers are opting for online bill payment services due to their convenience and speed.

Work starts on five-star hotel in Hai Phong

The BRG Group broke ground on the first five-star hotel in Hai Phong, the port city recently.

Spread across 8,300sq.m. in Hong Bang district, the project has a total investment capital of VND2.2 trillion (US$102 million). The 22-storey hotel, which will be operated by the Hilton chain, will have 240 guest rooms, 34 apartments, gym and spa facilities, and two large conference halls.

Apart from the hotel, the project also includes the construction of a mall with 205 high-segment apartments and a convergence of boutiques and retailers of several leading brands. The mall will have food and beverage outlets as well as recreational areas.

The project is expected to be completed in 2018. Meanwhile, the BRG Group is also developing Do Son Seaside Golf Resort in the city.

Porcelain maker signs deal with tourist firm

The Binh Duong-headquartered porcelain Chinaware manufacturer Minh Long 1 Co. signed last week a cooperation deal with HCM City's Saigon Tourism Co. Ltd. (Saigontourist).

Under the agreement, Minh Long 1 will be the main supplier of dinnerware under the Ly's Horeca brand and porcelain souvenirs to Saigontourist's hotels and restaurants across the country.

The deal is expected to have long-term benefits for the two big groups.

Speaking at the signing ceremony, Vuong Anh Tuan, deputy general director of Saigontourist Group, said: "We wanted to standardise our products on our networks across Viet Nam and thus demand a partner who can supply us with a big number of high-quality products."

Fisheries revenue and profit down in first quarter

The nation's fisheries have announced that revenues and profits were lower in the first quarter of 2015 than in the same period last year.

The Investment Commerce Fisheries Corporation (ICF) reported that revenues in the first quarter of this year were halved to VND25.8 billion (US$1.2 million).

Further, after deducting expenses, its net profit decreased by 97 per cent to VND40.35 million ($1,800), only equal to its earnings per share (EPS) of VND3.

Other fisheries companies also reported lower business results in the first quarter of this year, compared to last year's numbers.

Additionally, Ngo Quyen Processing Export JSC (NGC) reported that its net profit dropped one quarter to VND359 million, compared to last year's first quarter.

Meanwhile, Aquatex Ben Tre (ABT) said its revenues increased by one-fifth in the first quarter of this year, reaching VND112 billion ($5.2 million), however, its net profit decreased by 9.3 per cent to VND20.4 billion ($944,000), equal to VND1,776 in EPS.

An Giang Import-Export Fisheries (AGF) reported that both revenue and net profits dropped significantly compared to last year, falling by one-third to VND497.23 billion ($23 million), while net profits halved to only VND2.7 billion ($125,000).

The company said that its revenues and net profit were down because the company's sales in the first quarter were lower against last year. The company also did not export its products to the American market, which halved its export revenues to VND302 billion ($14 million).

Cuu Long An Giang Fish Company (ACL) recorded a slight decrease in revenues to VND222.6 billion ($10.3 million) and a 25-per-cent loss in net profit, falling to VND1.34 billion ($62,000) in the first quarter of this year.

Mekong Fisheries Joint Stock Company (AAM) also announced its revenue and net profit in the first quarter decreased against last year. The revenues were down 38.3 per cent to VND70.5 billion ($3.2 million), while net profits dropped two-thirds to VND657 million ($30,400) in the first quarter.

According to the Ministry of Agriculture and Rural Development, during the first three months of 2015 the country's fisheries export turnover was down by 23 per cent to $1.27 billion against last year. This was also the largest drop in fisheries exports during the last five years.

The Vietnam Association of Seafood Exporters and Producers (VASEP) said the main challenge for Vietnamese seafood companies was the anti-dumping policy in the US market, which nearly halved the country's export value in the first quarter.

VASEP also said that export values decreased in other markets, such as Japan and Europe where the yen and euro were weaker than the dollar, causing Vietnamese companies to suffer losses when they exchanged yen and euros into dollars.

Call for strict control of property brokers

The management of the operation of property trading floors and brokers must be tightened to prevent any speculation and boost the transparency of the currently upbeat realty market.

According to the Ministry of Construction, the development of property trading floors in recent years failed to meet market expectations and the percentage of property transactions conducted through trading floors was estimated at a modest rate of 15 per cent, affecting transparency and leaving buyers hungry for information about housing projects.

Now, many buyers must shell out extra money, which sometimes goes up to hundreds of millions of dong, to buy apartments offered by various project developers.

Recently, the Ministry of Construction asked to tighten checks on property developers and trading floors to ensure that they comply with regulations, especially in Ha Noi and HCM City. This will also prevent the spread of inaccurate information, illegal sale of apartments, pushing up housing prices through intermediaries, and unreasonable fees.

Experts said it is crucial to bring the property trading floor system under a strict management to boost the transparency of the real estate market.

The ministry's Department of Housing and Real Estate Market Management's statistics suggest that as of the end of last year, there were more than 1,000 property trading floors, mainly in Ha Noi and HCM City, handled by close to 35,000 qualified brokers.

A source from a property firm noted that he thought only half of those trading floors were under real operation and only a few had adequate capacities and operated efficiently.

From the beginning of this year, the market has witnessed a boom in the number of property start-ups, with realty consultant companies and many property firms planning to hire thousands of brokers this year.

Nguyen Manh Ha, the department's Director, previously said that in the absence of comprehensive standards for brokers and trading floors, the existing laws failed to cover all property brokerage operations.

Experts remarked that management policies, together with policies to enhance the quality of real estate brokers, are needed to prevent unhealthy competition among property brokering firms.

The existing regulation that property transactions must be conducted through trading floors has proved inefficient and the Law on Real Estate Business 2014, which will come into effect on July 1, removes the compulsion of this regulation.

Many experts said that a new regulation will allow home buyers to have more options and enhance transactions through trading floors, which might help eliminate trading floors that are not efficient, and improve the quality of realty brokering.

Le Hoang Chau, president of HCM City Real Estate Association, expects that property brokers will become more professional from July 1. "Only trading floors offering quality products and professional operations can maintain trusts in investors and buyers and can develop," he said.

Chau added that healthy property trading floors will contribute to push the property market to its real value and prevent speculation.

The Ministry of Construction has drafted a circular regulating the foundation of property trading floors and certification of property brokers. The draft has been released for receiving comments.

Ministry to boost sale of lychees

Ministry of Industry and Trade (MoIT)'s Domestic Market Department is working with relevant agencies to boost lychee sales for this year's crop.

In the two largest lychee-growing provinces of Bac Giang and Hai Duong, the total harvested output is estimated to be 200,000 tonnes of fresh lychees in the 2015 crop.

Early lychees are harvested from May 15 to June 5 and late lychees from June 1 to July 20.

MoIT said about 60 per cent of lychees (120,000 tonnes of fresh lychees) will be consumed domestically, while the remaining 80,000 tonnes (including 85 per cent of fresh fruits and 15 per cent of dried and frozen fruits) are for exports.

The ministry will promote lychee consumption in the domestic market, especially for the Southern market which accounts for 43 per cent of total lychee output for local consumption.

For export markets, apart from China, the Ministry targets to export to Laos, Cambodia, Thailand, Singapore, the US, Australia, Japan, Korea and Europe.

The lychee price is expected to be the same as the price in 2014.

Quang Nam garners textile investments

The central province of Quang Nam is welcoming an inflow of investment capital into the garment and textile sector.

Seven out of 12 newly licensed projects are from the sector, Cong Thuong (Industry and Trade) newspaper reported.

The most prominent project was a fiber-weaving-dying and garment complex worth VND1.2 trillion (US$55.5 million). The complex is being developed by the Viet Nam National Textile and Garment Group in Que Son District. It is slated for completion within two years and expected to earn VND2 trillion ($92.59 million) annually.

Other projects include a $30-million textile-garment-dyeing factory financed by the South-Korea-invested Panko Tam Thang Co; Korea's Onewoo garment manufacturing plant capitalized at $6 million; and a Taiwanese apparel factory valued at $4 million in Thuan Yen Industrial Zone.

Vo Van Hung, head of the Investment Promotion and Enterprises Support Agency of Quang Nam Province, said many domestic enterprise delegations and foreign firms coming from South Korea, China and Taiwan have visited the province to seek investment opportunities in the textile and garment industry.

A dozen investment agreements on developing textile and garment projects were inked between the agency and these foreign investors, Hung said.

According to analysts, the new investment inflow into the garment and textile industry is predictable, as both domestic and international firms seek to take advantage of the benefits Viet Nam will potentially derive when the Trans-Pacific Partnership Agreement is signed.

Several companies from China, Hong Kong, Taiwan, Japan, the US and South Korea have made large investments in the sector, according to Thoi Bao Tai Chinh (Finance Times) newspaper.

The textile and garment industry in TPP member countries is expected to benefit the most from the trade deal. For instance, products made from domestically sourced materials or imported from other TPP member countries will not face tariffs when exported to signatory countries.

Le Tien Truong, vice chairman of the Viet Nam Textile and Apparel Association, said up to 60 per cent of the country's textile and garment exports go to member countries.

Analysts estimate that once Viet Nam becomes a TPP member the average tax on Vietnamese garments will fall from the current 17 or 18 per cent to zero.

Trade fair to promote Vietnamese exports to RoK

A trade fair to select outstanding Vietnamese products destined for the Republic of Korea (RoK) will take place in Ho Chi Minh City on June 24-28.

The event is also to promote trade activities between the two countries, according to the municipal Centre of Promoting Trade and Investment and the Industry and Trade newspaper under the Ministry of Industry and Trade on May 11.

Pham Le Cuong, Director of the HCM City Centre for Supporting and Developing Small- and Medium-Sized Enterprises, said the programme helps businesses update information on the market’s import-export regulations.

He added that the signed free trade agreement (FTA) between the two countries has opened opportunities for Vietnam to boost farm produce exports to the market, such as garlic, ginger and sweet potato.

Tran Thi Nghia, a representative from the RoK’s Lotte Mart, said the company will open three additional supermarkets in Vietnam in 2015 and support capable small- and medium-sized enterprises in farm produce, seafood and forestry products to enter foreign markets.

According to the Ministry of Industry and Trade, the RoK liberalised 97.2% of import values, accounting for 95.4 percent of all tariff lines on many of Vietnam’s key agricultural commodities and aquatic products such as shrimp, crab, fish, tropical fruits and industrial goods like garment-textiles, timber and engineering products.

Canada drops probe against Vietnam oil pipe makers

Canada has announced it is dropping an anti-dumping investigation of oil pipe and tube products used in the petroleum industry – such as drill pipe, pipe casings and oil pipes – imported from Vietnam.

In July, 2014, the Canadian Border Services Agency (CBSA) started an investigation into several Vietnam steel businesses, claiming they were selling products at substantially reduced prices.

The unreasonably low prices were hurting the interests of local companies such as Tenaris Canada of Calgary, Alberta and Evraz North America Inc of Regina, Saskatchewan the CBSA alleged.

This was the first and only anti-dumping investigation to date by Canadian authorities of products from Vietnam.

Ministry of Industry and Trade (MoIT) officials said the decision to drop the investigation ensures Vietnamese manufacturers will be able to maintain newfound access to the booming Canadian oil market.

However, despite the CBSA no longer pursuing the probe, the decision has been appealed and remains a big issue.

Accordingly, the MoIT will continue to monitor the case, a representative said.

Vietnam raises duty on cassava exports

The Ministry of Finance (MOF) has raised the export duty on cassava chips to 5% in an effort to dampen foreign demand and keep the cost of petrol from escalating.

The decision was made at the request of the Prime Minister at a recent meeting in Hanoi discussing the pricing mechanism for E5 petrol— fuel that contains five per cent bioethanol.

Since late last year, E5 petrol has been the principal fuel sold in Hanoi, HCM City, Haiphong, Danang, Can Tho, Quang Ngai and Ba Ria-Vung Tau in accordance with a decision by the Prime Minister.

Cassava chips are the principal raw material for domestic ethanol production at the nation’s seven big ethanol plant and production facilities, which use an estimated 500 million litres of ethanol annually.

Currently the price of domestic chips has been soaring at record high levels of US$227.5 per tonne fuelled by increased demand from China and exacerbated by inadequate supply.

China has on average historically purchased roughly 90% of the cassava exported from Vietnam and other growers in the region such as Laos, the Philippines and Nigeria, which it uses principally for ethanol and animal feed production.

Soil used for cassava cultivation becomes exhausted after two or three years and crops must be rotated to replenish it with vital nutrients.

Due to high levels of production over recent years and inadequate attention to sustainability the current supply of cassava chips is lower than anticipated and at a level barely sufficient to meet domestic demand.

Accordingly, to alleviate the situation, the MoF has levied a 5% and 3% duty on the now tax free cassava and ethanol exports respectively in an effort to thwart foreign demand and inflationary pressure.

Another important task is the re-zoning of cultivation areas and to devise sustainable intensive farming methods and boost production.

Vietnam now has 450,000 hectares of cultivation areas, yielding around 9.5 million tonnes of fresh cassava (equal to 3 million tonne dried cuts or powder).

The central highlands region is the key cultivation zone which accounts for 27.7% of total areas and 26.2% of the country’s total output.

However, Central highlanders have not paid due attention to growing cassava intensively, just having focused on expanding cultivation areas, instead of increasing output.

Thus, the central highland steering board has urged provinces to implement technical solutions to grow cassava sustainably, ranging from choosing variety, expanding connectivity between farmers, businesses and processing factories.

Vietnam's cassava chip exports for the three months leading up to April surged 24% on-year on the back of the increased demand from China, according to the Ministry of Agriculture and Rural Development (MARD).

For the January-March period, Vietnam exporters shipped 137,000 tonnes of chips valued at US$420 million to all foreign markets, up 24% in volume and 22.7% in value against last year’s corresponding period.

Vingroup to inaugurate HCM City’s tallest building

Vingroup has announced that on May 16 it will officially launch the – Landmark 81 – an 81floor luxury 350 metre high rise complex located on the banks of the Saigon River in the heart of HCM City.

Sprawling over an area of 141,000 square metres the complex will house hotels, serviced apartments, commercial apartments, shopping malls, restaurants and an observatory.

The complex boasts a five-star Vinpearl Hotel with 450 rooms and a luxury 1,000 square-metre Presidential Suite offering full panoramic views of the city with a world class restaurant and bar on the 66th and 67th floors.

Deposit on import scraps aggravates financial burden on businesses

A Government’s new decree that will take effect from mid June regulates that businesses must deposit 10-20 percent value of a consignment when importing scraps as production materials, which might pollute the environment.

This regulation has raised objections from businesses saying it will freeze their capital source for production and further complicate customs procedures.

According to the decree, organizations and individuals must put down a 10 percent deposit to import 500 tons of steel and iron scraps or lower. The deposit rate is 20 percent for 500-1000 ton consignments.

The rate is 10-15 percent for less than 100 tons of paper and plastic scraps, 18 percent for 100-500 tons and 20 percent for more.

The Vietnam Environmental Protection Fund or commercial banks where businesses open their accounts are responsible for receiving and besiege the deposits.

Secretary General of HCMC Plastics Association Tran Hoang Nguyen said that many businesses have disagreed with the regulations saying it would freeze their capital, which mainly come from bank loans with an average interest rate of 7 percent.

Mr. Pham Thanh Tuy, project manager at Newtoyo Aluminum Paper Packaging Company, said that 70 percent of the company’s materials for production come from other countries. With an average import price of US$100 million per ton, they must leave as much as US$20 million as deposit.

Mr. Tran Minh Chi, former head of the Vietnam Institute for Tropical Technology and Environmental Protection, said that the regulation aimed to make importers responsible for handling risks and environmental pollution dangers from the import of the wasted materials.

The decree will help reduce the volume of polluting wastes congested at ports, whose treatment has been unknown. However it should not adequate well operating firms with bad ones by forcing all to pay the deposit of 10-20 percent.

Export import procedures have been complicated enough to add the deposit regulation.

Besides, making a deposit is easy but taking it back is improbably easy like that because of related procedures. Importers must present a proposal in writing together with a certified copy of customs declaration affixed with customs agencies’ seal on it to get the deposit back. This would slow down the capital rotation of businesses, he said.

Authorized agencies are in charge of handling scrap importers for breaking environmental regulations. The congestion of environmentally-polluting scrap products at ports is partly caused by their weak management ability.

They should focus on reforming administrative procedures and intensifying sanctions on the violators instead of issuing the complicating decree.

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