Vietnam clinches tra fish deal with GlobalGAP

A cooperation deal has been signed at the European Seafood Exposition in Brussels, Belgium between Vietnam and GlobalGAP on a voluntary program for responsible tra fish farming through certified standards.

The cooperation is aimed at boosting the image of the Pangasius fish in terms of hygiene and environmental sustainability.

The deal targets improving the application and certification capability of GlobalGAP in Vietnam aquaculture, as well as finding common ground between GlobalGAP and the local Vietgap, a program of Vietnam’s General Directorate of Fisheries.

GlobalGAP will train a Vietnamese technician in application and certification capability at its office in Cologne, Germany.

In addition, the organization will send a specialist to Vietnam for on-site practice. The two parties also agreed on the formation of a National Technical Group for further development of GlobalGAP in Vietnam conditions.

The agreement was signed between the Vietnam delegation led by Nguyen Thanh Bien, deputy minister of industry and trade, Pham Sanh Chau, Vietnam’s ambassador to the EU, Patrick Sorgeloos of Ghent University, Johan Verreth of Wageningen University, Guus Pastoor, director of Europe’s Seafood Importers and Processors Alliance, and SeafoodSource Contributing Editor Mike Urch.

Vinacomin, Hoa Phat vie for iron miner

Hoa Phat Group has announced its intention to buy a controlling stake in Thach Khe Iron Joint Stock Co, but is likely to face difficulties as the iron company's major stakeholder, State-owned mining group Vinacomin, also wishes to raise its stake to 51 per cent.

Thach Khe Iron Co (TIC), which is involved in iron ore exploitation in central Ha Tinh Province, currently has three major shareholders, including Vinacomin with 30 per cent stakes, Ha Tinh Trading & Minerals Corp (Mitraco) with 24 per cent and Viet Nam Steel Corp (VNSteel) with 20 per cent.

As the price of iron ore has increased, industry insiders say holding a stake in a large iron company such as Thach Khe Iron Co has become increasingly lucrative.

Hoa Phat Group (HPG) – one of the three largest steel producers in Viet Nam – recently expressed its interest in holding a controlling stake in the iron company.

In an initial move, HPG has begun finalising procedures to purchase a 5 per cent stake in TIC from the Bank for Investment and Development of Viet Nam (BIDV).

Tran Tuan Duong, HPG's general director, said the group received great support from the provincial People's Committee due to its strong financial capacity and experience in implementing projects. "The best solution would be for the Government to assign competent shareholders to implement the project. Any shareholder who failed to contribute capital on schedule would be allowed to withdraw from the shareholder list," Duong said.

HPG recently also joined hands with Mitraco to establish Hoa Phat Mitraco Minerals Co in which it holds a 63.5 per cent stake with the aim of implementing an iron ore selection and processing plant at Thach Khe Mine. The one million tonne capacity plant signed an agreement with TIC to secure the supply of iron ore to the plant.

However, both Vinacomin and VNSteel plan to raise their stake in TIC and Vinacomin proposed to the Government to increase its stake to 51 per cent in order to speed up the project implementation.

"Vinacomin submitted a shareholder restructuring roadmap where Vinacomin would eventually hold a 51 per cent stake in TIC," said Phung Manh Dac, Vinacomin's general director and TIC's chairman.

Le Duong Quang, Deputy Minister of Industry and Trade, also said TIC would be restructured, with Vinacomin holding a controlling stake and the ministry had asked TIC's management board to specify the deadline and the increase in its charter capital.

"Shareholders who do not contribute enough would lose their shareholder rights," Quang said.

However, Dac also said if Vinacomin failed to take a controlling stake in TIC, it could consider the possibility of withdrawing capital from the iron company. And if Vinacomin retreated, an opportunity might open up to Hoa Phat Group.

"This is a complex and difficult project. Investors can easily build an iron ore processing plant but the mine is difficult to operate as it is located close to the sea and is several dozens to several hundreds of metres under sea level," he said.

Thach Khe iron mine is the largest iron mine in Southeast Asia with total production potentially reaching 370-400 million tonnes, according to the Ministry of Industry and Trade.

TIC, with a charter capital of VND2.4 trillion (US$114.8 million), began operations in May 2007. However, by the end of last year, shareholders had contributed only 50 per cent of TIC's charter capital.

At a recent shareholder's meeting, all parties agreed to contribute the remainder by May 15.

Along with meeting Vietnam’s Ministry of Industry and Trade and Vietnam’s Embassy in the EU, VASEP hosted a seminar with various stakeholders. The seminar was designed to ignite dialog on Pangasius and is part of a larger effort by VASEP to heighten awareness of the product. Sustainability, hygiene and food safety were common themes.

A month ago, Vietnam had a meeting with WWF International in Switzerland, discussing the Aquaculture Improvement Project (AIP) on the Pangasius industry for the 2011-2015 period and cooperation activities on implementing ASC and Global GAP standards.

The meeting in Switzerland took place after a TV program ‘The Pangasius Lie’, which aired on German TV in March, damaged the industry’s reputation after showing the fish being fed and processed in unhygienic conditions.

Pham Anh Tuan, deputy head of the General Directorate of Fisheries under the Ministry of Agriculture and Rural Development, before leaving Vietnam for Belgium told the Daily that opinions of consumers are being led by misperception.

“The European Seafood Exposition and Vietnam are trying to change the misconception about the fish, which has to go under a series of quality control checks requested by importers and customers in European countries and the U.S. before being shipped abroad,” he said.

The elite fish of all Vietnamese seafood exports, started with less than 35,000 metric tons of exports in 2003 and has now reached 660,000 metric tons, for a total turnover of US$1.4 billion in 2010. European countries consume nearly two-thirds of the volume.

Trade ministry marks 60th anniversary

Prime Minister Nguyen Tan Dung has asked the Ministry of Industry and Trade (MOIT) to ensure policies are in place to meet the nation's development plans.

Addressing a meeting to mark the 60th year since the ministry was founded on May 14,1951, the Prime Minister praised its achievements over the last six decades.

"These gains can be attributed to the great efforts of various generations of leaders and workers over the course of building and developing the industrial and trade sector," Dung said.

Viet Nam is now entering a new period of development which will present many difficulties and challenges. It requires the ministry to seize the opportunities that present themselves and overcome challenges to complete the mission assigned it by the Party and Government from now till 2020 so that our nation will become fully industrialised.

"Our goal is that by 2020, 85 per cent of the GDP will come from the industry and service sectors. Of that, high tech services and products should account for about 45 per cent of the GDP, while the manufacturing sector should account for 40 per cent of the total industrial value. In the next five years, we'll try to increase the value of the industry and construction sectors to 7.8-8 per cent per year, while export turnover is expected to increase by 12 per cent per year. Hopefully by 2020 we will be able to balance exports and imports," Dung said.

To achieve these targets, it is imperative the MOIT formulate good and workable annual strategies to boost the industry and trade sectors.

Dung has ordered the ministry to focus on ensuring there is a sufficient supply of essential commodities for production and people's daily life.

In addition, Dung called on the ministry to give priority to the manufacturing sector to boost its competitiveness, as well as the production of goods that are likely to be exported.

In the immediate future, Dung said it was imperative the ministry worked closely with other sectors to ensure they were taking part in the energy-efficiency campaign.

During the meeting, the MOIT was awarded the Independence Order – First Class by the Party and Government in acknowledgement of its great contribution to the cause of national liberation and unification and in building and defending the homeland.

Since 1986, when Viet Nam embarked on the renewal process, export turnover has increased 92-fold.

Viet Nam has established formal economic and trade relations with 230 countries and territories.

Viet Nam is now a member of the World Trade Organisation and has formed free trade areas with numerous countries. Its foreign trade activities have increased year by year. Export turnover now accounts for almost 150 per cent of the country's total GDP – if imports are not subtracted from the total. Meanwhile the problem of an import surplus has been kept under control.

Investment in agriculture to be reduced

The Ministry of Agriculture and Rural Development has decided to adjust the allocation of public investment into the agriculture sector in 2011 in response to a Government call for more efficient spending.

Government Resolution No 11, which was issued on February 14, targets the curbing of inflation, stabilisation of the macro-economy and social security.

The cut in public investment will help reallocate capital to more important and urgent projects while helping curtail the budget deficit, according to Deputy Minister of Agriculture and Rural Development Hoang Van Thang.

The move will see 21 projects with investment from the State budget postponed, saving VND48.268 billion (US$2.3 million).

Thirteen projects will be suspended once they complete their preparatory period, eight others will be slowed, and two others will be postponed for the foreseeable future, according to the ministry.

According to the ministry's plan in 2011, VND104.73 billion ($5 million) in capital will be saved.

Domestic investment for four projects, which are receiving financial assistance from ODA funding, will not be cut.

Projects which are under completion, or construction to prevent natural calamities, will be given priority, according to director of the ministry's Department of Planning, Trang Hieu Dung.

VND66.468 billion ($3 million) from the capital saved will be given to complete 16 projects in 2011, while VND16 billion ($761,000) will be spent on three urgent projects including the National Seafood Breeding Centre, which will receive an additional VND9 billion ($428,000).

The ministry's tranche sourced from Government bonds totals VND3.5 trillion ($167 million), which only meets 51 per cent of total demand, said Thang.

The chairman of the central province of Thua Thien-Hue People's Committee, Nguyen Van Cao, said the province planned to cut 10 of 47 projects, saving VND16.2 billion ($771,000).

The ministry also ordered the reviewing and termination of inefficient and unfeasible projects across the whole agricultural sector.

Four new generators linked to power grid

Four new generators for the national power grid were brought into operation in the first four months of this year, adding a total 1,215 MW of electricity to the national power supply, according to the Electricity of Viet Nam Corporation (EVN).

The generators include Turbine No. 2 at Son La Hydro-power Plant, Turbine No. 2 at Uong Bi Thermo-power Plant, Turbine No. 2 at Song Tranh Hydro-power Plant and Turbine No. 1 at Dong Nai Hydro-Power Plant No. 3.

In addition, EVN increased the electric power purchased from China by 100 million kWh per month.

In the past four months the company also brought into operation 10 transmission lines and 500/220 kV transformers.

These sources helped EVN meet demand for power consumption and avoid power cuts across the country in April and in May.

EVN said they would perform necessary formalities to break ground for construction of planned power projects, and to ensure the progress of power transmission projects, especially those to connect newly built power plants with the national grid.

In May, the national grid will supply over 300 million kWh of electricity per day, EVN said.

Total ADB aid for Vietnam put at US$10 billion

The Asian Development Bank’s aid for Vietnam’s social and economic development plans had amounted to a total of US$10 billion by March this year, said Prime Minister Nguyen Tan Dung.

Dung, delivering an opening speech at the 44th annual meeting of the ADB’s Board of Governors that opened in Hanoi on Thursday, said the regional lender’s financing pledges went to over 100 projects and programs across the country.

In appreciating the ADB’s great financial, technical and consultative assistance for the country over the years, he stressed Vietnam had been using the bank’s aid in the most correct and effective way.

The Government leader highlighted the country’s impressive annual average economic growth of over 7% in the past decade, saying this achievement had resulted partly from international aid. Vietnam is striving to obtain annual growth of 7% on average in the next five years, he said.

The poverty rate dropped from 58% in 1993 to less than 10% last year, he noted, adding the rate would continue to fall by two percentage points annually in the next five years.

Vietnam has now become a middle income country, he said.

Dung underscored Vietnam’s strong support for the ADB’s initiatives to achieve the goal of a poverty-free Asia, saying the country will actively join these activities.

Qatar Airways cancels flight, staff says: no idea

Qatar Airways Friday cancelled its QR689 flight from Ho Chi Minh City to Doha with no explanation or official announcement, complained passengers.

When asked, its staff members said “we have no idea”.

They also gave limited support to the elderly, female and child passengers, many told Tuoitrenews.

They just talked to a limited number of passengers that the delay might be due to technical faults, while many passengers could see the outside of the plane in the front had been slightly dented due to unknown collision.

Those who were about to fly to Frankfurt have boarded a Vietnam Airlines flight the same night, but those who were to be transited via Doha to the UK had to return to Movenpick Hotel Saigon to wait for the next flight on Saturday evening.

Nation's bourses may merge

Securities watchdogs are considering different proposals to merge the HCMC and Hanoi stock exchanges, or establish a parent company which would hold both bourses, says Nguyen Son, head of the Market Development Department of the State Securities Commission.

The two stock exchanges could be combined to form a comprehensive technology platform, said Le Hai Tra, a member of the board of the Ho Chi Minh Stock Exchange.

"Two technology systems exist to serve the same purposes," said Tra. "A merger will help save enormous costs."

The State Securities Commission is developing a new system which would make fundamental changes in the securities infrastructure and avoid waste. Deployment of the new system is complex and required ongoing consultation with foreign experts. But, Tra said, "if the merger is critical, this system can be ready."

A merger would help the Vietnamese stock market improve its competitiveness among regional stock markets.

"The restructuring of both bourses must be put in the context of a regional competitive scenario," Tra added. "No neighbouring countries have two separate exchanges as in Vietnam ."

But some securities analysts have argued that the merger would create a monopoly and frustrate investors who want to maintain investments on two separate exchanges.

They argue that the establishment of a holding company would help focus management functions on a single entity, while allowing each bourse to continue operating independently, avoiding major disruption or volatility on the market.

Hanoi Stock Exchange deputy director Nguyen Thi Hong Loan backs the holding company approach.

"The market should be retained as is for the next four years to avoid disturbances," she said.

But Son said that the current model keeps share, bond and derivatives markets separate, scaring investors away. Merger of securities exchanges for operational efficiency is now a common trend worldwide, he said.