Stocks sink on sluggish trading

Shares started this morning's session in the green on the HCM City Stock Exchange but gradually declined during a sluggish session of trading.

The VN-Index rose to 391 points before falling to 388.27 points by the end, down 0.02 per cent on yesterday's close.

Only 18 million shares, worth more than VND431 billion (US$20.5 million), changed hands this morning.

Market conditions were slightly negative as 100 codes shed value, 82 increased and 127 remained flat.

Blue chips slumped, while the VN30, tracking the top 30 shares on the southern bourse, followed suit falling 0.16 per cent to 453.23 points.

Only the insurer Bao Viet Holdings (BVH) and property developer Hoang Anh Gia Lai (HAG) hit the ceiling price while the majority of large-cap shares lost value.

Investors continued to offload shares of Tan Tao Investment Industry (ITA), driving its shares to be the most active on the bourse with nearly 1.5 million shares changing hands. ITA fell for a fourth straight day, closing 2 per cent down at just VND5,000 a share.

On the Ha Noi Stock Exchange, the HNX-Index slid another 0.68 per cent, its fourth consecutive falling day also, to 57.03 points on draining value of just VND71.7 billion ($3.4 million).

Losers outnumbered gainers by 109-49.

PetroVietnam Construction (PVX) was again the most active stock with total trades of 2.3 million shares, shedding another 3.9 per cent to finish at VND4,900 a share.

Credit growth likely to remain stagnant

Commercial banks will be hard-pressed to meet the 8-per-cent credit growth target in the second half of the year despite looser Government monetary policies, said National Advisory Council for Financial and Monetary Policy member Traan Du Lich.

Business demand for capital often increased significantly in the final months of the year, but the rise was not expected to be as dramatic this year in light of large inventories, depressed consumer demand, and shrinking export markets, Loch said.

Exports in the first eight months of the year surged by 17 per cent year-on-year, but the rise was mainly attributable to foreign-invested enterprises, according to the General Statistics Office. While retail sales revenue during the period increased 17.5 per cent, the inventory index remained high at 20.8 per cent.

Many enterprises, already saddled with heavy debt burdens, would only be able to take out new loans if the Government forces commercial banks to refinance existing debts at lower interest rates.

The banking system has so far seen stagnant credit growth, despite adequate liquidity. The central bank had pumped VND180 trillion (US$8.57 billion) into the system via various channels by the end of July, but systemwide credit growth in the first eight months has increased by just 1.4 per cent since the end of last year, Lich said.

High inflation has also kept interest rates high, he noted. With the consumer price index is targeted at 8 per cent this year, deposit interest rates are unlikely to fall below 9 per cent per year.

But banks have offered attractive lending interest rates to lure borrowers, LienViet Bank vice chairman Nguyen Duc Huong told the newspaper Dau Tu (Investment). Pham Chi Thanh, head of Vietcombank's business and capital management department, said that his bank would offer six-month loans at interest rate of 6 per cent to qualified borrowers.

City beefs up waterway transit system
 
Waterway routes for tourists as well as residents will be set up in HCM City as soon as the dredging and widening of the city's major canals are completed.

The city has nearly 8,000 km of rivers and canals, accounting for 17 per cent of the city's total area, according to the Department of Transport.

Luong Minh Phuc, director of the city's investment management board for Urban Traffic Works, said the dredging of the Tau Hu – Ben Nghe and Doi – Te canals would be completed soon.

Initially, the waterway routes will be set up for tourism and later for public transport. The tourism route will connect with Vo Van Kiet Road to elevated roads that will be built in the future.

A tourism route on Tau Hu – Ben Nghe Canal is currently being created by the city, which is planting trees and designing along the canal.

Tran The Ky, deputy director of the Transport Department, said the city would open a waterway route on the canal when the dredging of Tau Hu – Ben Nghe Canal is completed by the end of this year.

The heights of bridges on the canal meet the transport safety regulations for boats.

The canal will become an important waterway transport route as it will link rivers and canals running to the Cuu Long (Mekong) Delta, the country's largest rice, fruit and seafood producer.

The route will run on the Sai Gon River, Vam Thuan River, Nuoc Len Canal, Doi and Te Canal to the Ben Luc River in the Cuu Long Delta province of Long An.

The aim is to help reduce pressure on road transport to and from HCM City and the Cuu Long (Mekong) Delta.

The city has also been conducting research on three inland waterway routes that will be depart from Nha Rong Wharf in District 4.

The first route will run on the Sai Gon River to the outlying district of Cu Chi, and the second route will run on the Tau Hu – Ben Nghe Canal to outlying Binh Chanh District.

The last route will run on Te Canal to the Cho Dem River intersection in Binh Chanh District.

Of the city's 200 ports and boat stations, the four largest are Sai Gon, Tan Cang, Ben Nghe and Nha Be.

Under the city's plan to develop ports by 2020, the Department of Transport will renovate ports for transporting passengers and goods along the Te Canal.

The department also plans to build several new ports for transporting goods, including the Nhon Duc Port in Nha Be District and Phu Dinh Port in District 8.

In addition, it will turn part of the Sai Gon Port at Nha Rong Wharf and Khanh Hoi Port into small tourism ports, and build an international passenger ship station at Phu Thuan Park in District 7.

Export tax cut to boost coal industry
 
The Ministry of Finance Ministry is hoping to re-ignite the ailing coal industry with plans to slash export tax on the fuel.

The proposal, submitted to Prime Minister Nguyen Tan Dung on Monday, suggests halving the export tax on coal in a bid to entice foreign investors.

The innovative idea aims to boost business for the struggling Viet Nam Coal and Mineral Industries Group (Vinacomin) and would see coal tax drop from 20 to just 10 per cent.

According to the ministry, Vinacomin sold 21.8 million tonnes of coal in the first seven months of the year, just 48 per cent of its target.

By the end of July, the group's inventory was 9 million tonnes due to a sharp decrease of both domestic consumption and exports.

The ministry said the current export tax of 20 per cent has forced prices higher than the threshold at which Vinacomin can feasibly export coal.

The ministry calculated that reducing the export tax on coal by 10 per cent would enable Vinacomin to sell an additional 6.5 million tonnes.

The benefits of the tax cut would be numerous.

It would help the group increase export volumes, reduce inventories and maintain production levels, safeguarding around 110,000 jobs in the mining industry.

In addition, the State budget collection would also be increased while Vinacomin would be able to balance its financial resources to invest in coal production.

The ministry added that the tax would be increased as the world market recovers.

The move follows the example of rival coal producing countries, many of whom have reduced taxes to increase exports.

Indonesia and Australia currently have no export tax, while others - China 10 per cent, Mongolia 7 per cent and Russia 5 per cent - remain low.

On the same day, deputy head of the Ministry of Industry and Trade's General Department of Energy Nguyen Khac Tho said that the move was important as the Government has forecast the coal industry based on export plans. This year, its export quota was 14.5 million tonnes.

Speaking at a meeting to review the first eight months of the year, Tho said: "The tax cut is necessary to reduce inventory while meeting yearly capital demand of VND40 trillion (US$1.9 billion) for the sector to increase coal production to 55 million by 2012."

He added that the ministry, in co-operation with the finance ministry, have resolved to increase the price of coal sold to Electricity of Viet Nam (EVN) for power production, ensuring Vinacomin has a sufficient profit margin for investments and the expansion of coal mines.

The selling prices of energy was actually lower than production costs, which was caused the PM to approve the plans.

The current electricity price is 5.6 cent per kW while production cost is almost double at 9.6 cent per kW.

He added that if there was no increase of the coal price for EVN, households would not save energy.

Tax deferrals benefit strapped enterprises

About 70,300 enterprises benefited from an extension of corporate income tax payments, worth a total of VND2.868 trillion (US$136.6 million),to date, according to the Ministry of Finance.

The ministry also reported that about VND11 trillion ($523.8 million) of value added tax for April, May and June was extended to more than 190,280 companies.

The tax deferrals were implemented in accordance with the Government's Resolution No 13, which was issued in May to support enterprises in the current time of economic hardship.

Accordingly, the Government offered a nine-month extension of corporate tax payments backwards since 2011 together with a six-month extension of value-added tax payment of April, May and June to small- and medium-sized and labour-intensive enterprises.

In addition, more than 2,400 enterprises enjoyed a 50 per cent reduction of this year's land lease fees while 33,510 fishermen and salt workers were offered business rate relief, worth VND250 billion ($11.9 million) and VND10 billion ($477,000), respectively.

According to Deputy Minister of Finance Do Hoang Anh Tuan the number of enterprises which halted operation decreased from 25,000 earlier this year to about 21,000 recently with an increase by 2.8 per cent in the number of enterprises reporting second-quarter profit.

Meanwhile, tax arrears continued to climb, he said, pointing out that to the end of July, tax arrears amounted VND34.160 trillion ($1.627 billion), an increase of 33 per cent compared to that of the year's beginning.

A sum of VND2 trillion ($95.238 million) would be loaned to reinforce canals, build roads in rural areas, pump stations and develop infrastructure for aquaculture and agricultural production, according to the ministry.

New law limits advertising
 
The new Law on Advertising, passed by the National Assembly last June, takes effect on January 1, replacing the 2001 Ordinance on Advertising and subsequent regulations.

Under the new law, which includes general mandates on truth in advertising, the Government has the right to set out additional requirements on the contents of advertisements applicable to goods and services which have a direct affect on the health of human beings and the environment.

Like the 2001 Ordinance, the Law on Advertising requires advertising to be in Vietnamese, except for trademarks, slogans, commercial names or proper nouns in foreign languages or words which have become internationally known and which cannot be translated into Vietnamese; advertisements in books, websites, newspapers or printed matter licensed to be published in the languages of ethnic minorities or in foreign languages; and broadcasts in the languages of ethnic minorities or in foreign languages.

Where an advertisement is bilingual, the size of the text of the foreign language must not be larger than three-fouths of the size of the Vietnamese text and must be placed beneath the Vietnamese text. In visual or audio-visual media, the Vietnamese language must be displayed or broadcast first, followed by the foreign language.

In printed newspapers, the area covered by advertisements must not exceed 15 per cent of the total area of one issue of a newspaper or 20 per cent of one issue of a magazine, except in specialised advertising supplements.

In broadcasts, advertisements must not exceed 10 per cent of the transmission time on any radio or television channel in any given day, except for specific advertising channels or programmes. The duration of advertising on a paid channel must not exceed 5 per cent of the total duration of a programming broadcast on a given day. It is prohibited to advertise more than twice in excess of five minutes during any film programme or more than four times in excess of five minutes during an entertainment programme. Additional provisions apply to advertising on websites or by email.

As with the 2001 Ordinance, the Law on Advertising specifies conditions for advertisers. An advertiser must have a business registration certificate authorising it to advertise goods or services.

For such advertisements, there must be documents evidencing the compliance of the goods or services with standards or technical regulations as stipulated by law, including specific conditions applicable to medicines, medical equipment, cosmetics, chemicals, pest control preparations, nutritional products for infants, health services and food products.

Northern province to host agricultural fair

An agricultural trade fair will take place in the northern province of Ninh Binh from November 23-27, according to the Ministry of Agriculture and Rural Development.

The annual event will include a fair, an exhibition, an investment promotion forum, a programme for farmers, and visits to successful agricultural production facilities.

During the event, the northern province will introduce its overal plan for socio-economic development till 2020 and its comparative advantages in terms of investment.

Chinese steel floods market amid falling global demand

Domestic steel producers are facing fierce competition from rival Chinese imports, which are flooding the local market, according to the Viet Nam Steel Company.

The company said that the volume of steel arriving from China in the first eight months of this year reached 137,000 tonnes, five times higher than the total volume imported in the whole of 2011.

Chinese producers have increased their exports to Viet Nam and other ASEAN countries as a global decrease in steel demand has left them with large stockpiles.

Tra fish prices tipped to rise due to undersupply

The price of tra fish will soon increase due to a lack of raw materials, the Viet Nam Association of Seafood Exporters and Producers have forecast.

The association said that processing plants would see shipments of the fish reduce by roughly 30 per cent. The decrease is due to a reduction in aquaculture by farmers following recent financial losses.

The price of tra fish has surged to VND23,500 (US$1.1) per kilo, following a month where the cost remained consistent at VND22,000 ($1.04) per kilo.-

Port project shuts down fisheries

Hundreds of aquaculture farms operating in Vung Ro have been told that they must close no later than October 2013, the Phu Yen Province People's Committee has said.

The south-central province has asked the local Agriculture and Rural Development Department to release guidelines confirming that aquafarming businesses, including those run by non-Vietnamese, will no longer be allowed in the area. Existing farms will receive no compensation following their closure.

Vung Ro, located in Dong Hoa District, Phu Yen Province, has ambitious plans to construct a deep-water port and develop the petro-chemical industry there.

According to the Viet Nam Port System's plan the Vung Ro complex, which they plan to operate from 2015, will be designed to receive large vessels with a capacity of up to 250,000 DWT (dead-weight tonnage). The port will serve the Vung Ro Oil Refinery Plant.

When the development plans were approved by the Prime Minister in 2005, there were 860 aqua farms in the area, according to the provincial People's Committee.

The committee has admitted that these farms were never cleared due to poor management by local authorities, and many of them have developed since then.

Central province calls for Japanese investment

A delegation from the central province of Binh Dinh will travel to Japan next week to call for investment from the country, according to the provincial People's Committee.

It is hoped that the scheduled meetings in Osaka will encourage Japanese investment in Vietnamese industries ranging from infrastructure development and trade service to energy and electronics.-

Da Nang hopes to boost tourism ties with Thailand

The central city has asked Thailand for further co-operation and investment in tourism and trade as well as launching a direct flight route from Bangkok to Da Nang.

In a meeting yesterday with the Thai General Consul in HCM City, Panpimon Suwannapongse, vice chairman of the Da Nang People's committee Phung Tan Viet, stated that last year import-export turnover between Thailand and Da Nang reached US$30.2 million, of which $28.5 million were exports from Thailand.

Thailand has only had one investment project in Da Nang so far. The total value of the project was $10,000.

The central city attracts around 700 tourists from Thailand annually.

Da Nang has hosted the annual East-West Corridor Commercial Exhibition since 2007, which attracted businesses from Thailand, Myanmar, Laos and Viet Nam.

Shorter settlement period falls flat

Stock investors are showing little interest in the three-day settlement period for market transactions, referred to as T+3, made official on September 4. Implementing T+3, stock brokerages are required to settle payments to the securities depository centre prior to 4 pm on the T+2 date, making shares fully tradeable on the third day.

T+3 therefore allows investors to resell shares within three days of acquiring them, yet sales taking place on the T+3 date have actually increased, helping pull share prices down.

"Most would think it is a positive way to benefit investors and the market as a whole with faster capital turnover and reduced risk, since investors can sell securities one day earlier than before," said Nguyen Dinh Dung, an analyst for the financial information website vietstock.vn.

However, many investors were still cautious, he said, with most investors willing to accept T+4 if share prices were rising, rather than T+3 with a stagnant market. T+3 only had an impact on investor psychology, but did not increase capital flows into the market, he said.

"Rising demand based on psychology is not sustainable," Dung said.

The market would develop more sustainably if regulators could ensure proper governance within listed companies, which would form a solid foundation for their shares, he added.

After a week since the formal implementation of T+3, two brokerages – Trang An Securities Co (TAS) and South Korea-invested Golden Bridge Securities Co – fell on liquidity deficit. The Viet Nam Securities Depository suspended depository activities of Golden Bridge from September 7 until September 30 due to late settlements, while it previously suspended custody operations of TAS from September 5 to October 5.

Depository Centre director Phuong Hoang Lan Huong told the publication Dau tu chung khoan (Securities Investment), "Under current regulations, investors must pay for the transactions to brokerages on the initial transaction date."

Huong said the centre would ask the State Securities Commission for stricter penalties against violations.

Brazil halts fibre dumping probe, eyes bicycle tyres

Brazil's Development, Industry and Foreign Trade Ministry has stopped its investigation into the alleged dumping of viscose fibre by Vietnamese and Turkish companies and begun a probe of Viettnamese-made bicycle tyre imports into Brazil.

According to Viet Nam's Ministry of Industry and Trade, the investigation had been ongoing since last September.

The Brazilian Department of Commercial Defence held a question and answer session with Vietnamese exporters eight months later.

By the end of last month, it had officially concluded that the investigation had been halted.

According to Viet Nam's Ministry of Industry and Trade, this has raised the status of Vietnamese fibre exporters throughout the world.

However, the ministry suggested that a lesson had been learned and that Vietnamese enterprises should focus on broadening their markets instead of making fast growth in just one.

It said that fast growth had prompted the Brazilian manufacturers to take trade defence measures to protect their own industry.

Although Brazil annulled its investigation into alleged dumping practices, it would re-open the case when more proof emerge.

Brazil has begun an anti-dumping investigation into bicycle tyres sold by Viet Nam, according to the Viet Nam Competition Authority.

Three countries have come under investigation – China and India being the others but with only India being considered a market economy by Brazil, it has been chosen as a reference for calculating dumping margins for the other two.

The price applied in this case is US$5.66 per kilogramme, the rate at which India exported to Germany during the investigation period (April 2011 to March 2012).

Vietnamese tires were exported to Brazil at $2.86.

Vietnamese tyre exporters have 40 days starting on September 3 to reply to Brazil, though they can ask for another 30 days.

Involved parties, including trading companies and business groupings, have 20 days to register to join the lawsuit.

This is Brazil's third anti-dumping case against Viet Nam this year after investigations into rolled steel and automobile tyres.

Last year, Brazil also conducted anti-dumping investigation into the Vietnamese yarn.

The Government has advised businesses to contact the Viet Nam Competition Authority for assistance (25, Ngo Quyen Street, Ha Noi). Telephone: (04) 22205002 ext: 1036.

They can also obtain information on anti-dumping cases from the Ministry of Industry and Trade's www.canhbaosom.vn or www.earlywarning.vn.

The website provides early warning for Vietnamese products that could face trade sanctions like anti-dumping.

Port project shuts down fisheries

Hundreds of aquaculture farms operating in Vung Ro have been told that they must close no later than October 2013, the Phu Yen Province People's Committee has said.

The south-central province has asked the local Agriculture and Rural Development Department to release guidelines confirming that aquafarming businesses, including those run by non-Vietnamese, will no longer be allowed in the area. Existing farms will receive no compensation following their closure.

Vung Ro, located in Dong Hoa District, Phu Yen Province, has ambitious plans to construct a deep-water port and develop the petro-chemical industry there.

According to the Viet Nam Port System's plan the Vung Ro complex, which they plan to operate from 2015, will be designed to receive large vessels with a capacity of up to 250,000 DWT (dead-weight tonnage). The port will serve the Vung Ro Oil Refinery Plant.

When the development plans were approved by the Prime Minister in 2005, there were 860 aqua farms in the area, according to the provincial People's Committee.

The committee has admitted that these farms were never cleared due to poor management by local authorities, and many of them have developed since then.

European meat to enter Vietnamese market

Vietnamese consumers will have the chance to taste pork and beef imported from the European Union through a seven-month campaign Tradition, Quality and European Taste.

The campaign, which lasts from September 2012 to March 2013, aims to introduce and bring European pork and beef to Vietnam, according to the Union of Producers and Employers of Meat Industry (UPEMI) and the Polish Embassy in Vietnam.

UPEMI and the embassy organised a press briefing on September 12 to announce the campaign.

A UPEMI representative said his organisation will increase market research and meet Vietnamese businesses, especially meat importers and distributors, to develop distribution networks in the country.   

A food and beverage exhibition opened in Ho Chi Minh City on September 13 to promote pork and beef imported from the European Union.

Fourteen meat processors from Poland are participating in the exhibition, which lasts through to September 16.

Vietnam has imported Polish pork since 2010. In the first quarter of 2012 Vietnam consumed 25 tonnes of Polish pork, meeting the EU standards.

Vietnam trains Mozambicans to grow rice

A training course on farming wet rice for Mozambican agricultural officials has opened at the Hanoi Seed Centre.

The course is part of a tripartite project between Vietnam, Japan and Mozambique to develop strategies for growing rice, which was launched in 2010.

During the month long course, the trainees will learn about rice production in Vietnam, as well as Vietnam’s policies to develop the agricultural sector.

They will be provided with a comprehensive knowledge of how to grow rice and also learn about different varieties, disease control, harvesting, storing, irrigation and water management.

The trainees will later go on field trips to visit successful models of production.

EU inspects Vietnam seafood

A delegation from the Food and Veterinary Office (FVO) of the European Commission is in Vietnam to work on the national control systems that ensure food safety for seafood destined for exports to the EU.    

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), the delegation will also monitor residues and contaminants in live animals and animal products as well as quality-control veterinary medicinal products during their visit from September 11-21.

The delegation will focus their attention on the management of pre-processing establishments such as cultivation areas, raw material purchasing agents, and veterinary and food production factories.

VASEP said the EU remains Vietnam’s second biggest seafood export market. Largely due to the the global economic crisis, exports to the EU have hovered around US$100 million a month in recent times, down 10-12 percent compared to the same period last year.

Japan helps develop Hanoi infrastructure

The Hanoi People’s Committee and the Japan Bank for International Cooperation (JBIC) on September 12 signed a memorandum of understanding on promoting investment in infrastructure of the capital city.

Under the agreement, the two sides will create favourable conditions for the private sector to engage in urban infrastructure and industrial projects in the forms of public-private partnership (PPP) and built-operation-transfer (BOT).

The projects can see the participation of Japanese companies, as investor or contractor, and others which qualify for receiving JBIC’s financial assistance.

Earlier, the project for Hanoi’s metro railway No. 5 was chosen for PPP investment.

MobiFone, Vinaphone to be merged into one

There is a plan to merge two Vietnamese giant mobile service providers, MobiFone and VinaPhone, to strengthen their operations.
    
Details of the merger plan are still under discussion by the Vietnam Posts and Communications Group (VNPT), said Pham Hong Hai, head of the Telecommunications Department of the Ministry of Information and Communications (MIC) at a forum on telecom market on September 12.

Hai said that the VNPT has asked the MIC to merge the two giants, both under the management of the VNPT. The final decision on the merger is expected to be issued by the end of this year, he said.

However, Vo Tri Thanh, deputy head of the Central Institute of Economic Management (CIEM), expressed his concern about the negative effect of the merger on business reform.

The White Book on Vietnam's ICT 2011 showed that MobiFone held a 29.11 percent share of the local mobile market and VinaPhone, 28.71 percent, both behind the Military Telecom Group (Viettel), which seized 36.72 percent.

Experts fear monopoly after Vinaphone, Mobifone merger  

The merger of two large mobile service providers Vinaphone and Mobifone became a hot topic at a conference held on September 12 in Hanoi.

Vo Tri Thanh, deputy head of the Central Institute for Economic Management (CIEM) stated that the merger is adverse to competition and may even violate regulations, adding that the merger goes against current restructuring policy.

A representative of the Competition Administration Department, under the Ministry of Industry and Trade, said they are unsure of the exact market share each provider holds. Market share, under the competition Law, is calculated based on a company's income, not solely on the number of subscribers, and this information has not yet been fully compiled. However, the law prohibits a merger if the result is a total market share that exceeds 50%.

The head of the Ministry of Information and Communication's Telecom Department Phan Hong Hai said they received the proposal from VNPT and it is under review.

The Government has approved the list of major State-owned enterprises that will be kept. The other enterprises are encouraged to equitise and the government will withdraw its capital.

"I think we need at least three equal competitors in the market. We will make decision on the issue by the end of the year." Hai said.

Tran Manh Hung, director of a law firm, said that it is dangerous to allow the market to be run by just a few major players, as it would effectively eliminate competition from smaller firms. "Vietnam now has three major mobile providers: Viettel, VinaPhone - MobiFone (VNPT) and Vietnam Mobile. However, the gap between these providers will rapidly widen if the Government doesn't support an equal playing field for smaller providers such as Vietnam Mobile." he said.

Thanh, deputy head of CIEM, said the way the market is currently structured will cause difficult for its development, citing the withdrawal of investors such as Beeline from the Vietnamese telecom industry.

"The three biggest mobile providers are State-owned enterprises. Is there really competition if all of these companies belong to the Government? Competition is the cornerstone of a market-oriented economy," Thanh said.

Thanh went on to say that once a company established its network, the possibility of competitors joining is next to nothing because the number of players in the industry is so small. Equitisation is needed to create fair competition and improve service, he said.

Though the Consumer Protection Law was approved in 2010, enforcement remains weak.

HCM City hosts conference on trade quality assurance

An international conference on "Business Expansion by Conformity Assessment" organised by the Japan Quality Assurance Organisation (JQA) and the local Quality Assurance and Testing Centre 3 (QUATEST 3) opened in HCM City on September 12.

Together with the growing trade between Japan and Vietnam, the demand for conformity assessment – including testing, inspection, certification and calibration – by a third party is becoming more and more important, especially in winning business partners' confidence and promoting trade facilitation, said Hoang Lam, deputy director of QUATEST 3.

QUATEST 3 is a third-party conformity assessment agency.

As leading conformity assessment agencies in Japan and Vietnam and members of Asia Network Forum, JQA and QUATEST 3 have co-operated in supporting enterprises from both countries, Lam said.

JQA, established in 1957, has been providing certification service and developing the certification system in co-operation with Japanese electrical home appliances and consumer electronics manufacturing companies, transportation equipment companies, and others.

JQA also provides services such as calibration and verification of measuring instruments, testing and inspection of construction materials and machinery, and Japanese Industrial Standards certification.

Most intelligent robot to come to Vietnam

Europe’s NAO will be in Ho Chi Minh City from October 4-6.

The world’s most intelligent robot will perform some of its interesting functions like moving, holding objects, introducing itself in Vietnamese and dancing to the local music at three major industrial exhibitions.

They are International Exhibition on Machine Tools and Metalworking Solutions for Production Upgrade (Metalex Vietnam), the Only Exhibition on SMT & Testing Technologies and Supporting Industries for Electronics Manufacturing (NEPCON Vietnam) and the Supporting Industry Exhibition.

These exhibitions, jointly held by the Thailand’s Reed Tradex, the Japan External Trade Organisation and the Ho Chi Minh City Information and Trade Promotion Centre, are expected to draw 400 domestic and foreign businesses from 25 countries around the globe.

Domestic gold tumbles by VND150,000/tael

Domestic gold prices fell slightly on the morning of September 13 by VND150,000/tael compared to the previous trading session.    

At 8:10, SJC gold was listed at VND46.15-46.45 million/tael in Ho Chi Minh City, but hovered around VND46.3-46.45 million/tael in Hanoi.

Bao Tin Minh Chau dragon gold was traded at VND44-44.3 million/tael.

On the afternoon of September 12, the domestic gold reached VND46.62 million/tael when global gold edged up to US$1,744/ounce.

However, economists predict that gold will go up in price as the German Government plans to offer a bailout for the eurozone. Accordingly, European leaders can use the 500-billion fund to purchase government bonds to settle public debts.

Food & beverage expo attracts businesses

Nearly 300 businesses from countries and territories are showcasing their products at the Vietfood & Beverage Exhibition and the Processing & Packaging Solution Exhibition (ProPack), which opened in HCM City on September 13.

On display at 350 stalls are farm products, vegetables, fruit, fresh & frozen seafood, processed & canned food, beverages, additives, herbs, fish sauce, as well as processing and packaging technologies.

The exhibition is being attended by big domestic companies with reputable brand names such as Vissan, Cau Tre, Khanh Hoa Sanglagane, Sa Giang, Sabeco, Bidrico and Tan Hiep Phat.

Meanwhile, foreign businesses, including those from the Republic of Korea, Poland, Spain, Singapore, Indonesia, and India, are displaying processed fruits, cheese, dairy products, bee honey, and wine.

The presence of large numbers of domestic and foreign businesses shows the food and beverage industry has been developing well despite the impact of the global economic slowdown, said Nguyen Nam Hai, Deputy Minister of Industry and Trade.

With its increasing prestige, the exhibition not only offers opportunities for businesses to promote trade, products, and trademarks, but also helps improve the food and beverage processing industry in Vietnam, said Hai.

The exhibition lasts through to September 16.

Festival boosts Vietnam-Japan trade ties

A special Vietnam-Japan festival, due to take place in Tokyo and Fukuoka from September 13-18, is expected to strengthen bilateral cooperation, especially in trade and economics.    

“Vietnam meets Japan 2012” is part of activities to celebrate the 40th anniversary of the two nations’ diplomatic ties. It is considered a great opportunity for Vietnam to promote the beauty of its people and landscape, as well as their vast potential for business cooperation with Japan.

The program includes art performances in Tokyo and Fukuoka, a trade forum on marine-based industries, a vocational training seminar, and a cultural and tourism festival.

Japan is currently Vietnam’s leading foreign investor and its third largest export market. Their combined trade turnover hit US$21.2 billion in 2011, and is expected to reach US$40 billion by 2020.

In the first five months of this year, Japanese investors poured US$3.68 billion into the Vietnamese market, accounting for 61 percent of the nation’s total foreign investment.

Japan is also the single largest provider of official development assistance (ODA) to Vietnam, with the former granting incentive loans worth US$24 billion since 1992.

In recent years, a large number of Vietnamese guest workers and trainees have visited Japan, reaching 30,000 people between 2006 and 2011. There are currently about 4,000 Vietnamese students studying in Japan.

Conversely, Japanese tourists presently make up 10 percent of arrivals to Vietnam.

Vietnam-America two-way trade reaches US$18 billion

wo-way trade turnover between Vietnam and America reached more than US$18 billion in the first seven months of this year, up 19 percent against the same period last year.    

According to the Vietnam General Department of Customs, Vietnam enjoyed trade surplus with nearly US$13.4 billion in export revenue and more than US$4.6 billion in import value.

The US remains Vietnam’s biggest trading partner in the region, with export-import turnover rising 20 percent to US$13.9 billion in the reviewed period, followed by Brazil (US$1.1 billion), Canada (US$903 million), Argentina (US$530 million), and Mexico (US$473 million).

Vietnam mainly exports to these countries garments and textiles, wood furniture, footwear, seafood, machinery and accessories and imports from the American market computers, electronic products, spare parts, foodstuff and materials.

Government investigates petrol hoarding

The Department of Market Management has said that it is looking into claims that petrol stations have been hoarding gasoline after hearing rumors about a price increase.

Across the country there have been an estimated 212 petrol stations that have either limited working hours or temporarily closed, while 136 stations have turned off their pumps, claiming limited supply from wholesalers as the reason.

Before the third petrol price hike, on August 3, 83 shops also closed in 16 provinces and cities, and before the fourth petrol price hike on August 28, the number of stations that temporarily shut down increased to 103 in 25 provinces and cities.

The Market Management Department said the lack of petrol is the most common excuse that station owners use. Owners claim that wholesalers, such as Mipec, PVOil, Petrolimex and Petimex cannot meet their demand.

The department has decided to investigate wholesalers' distribution systems, registration dossiers and contracts. The department will also check the temporarily closed stations and look into their contracts, invoices and delivery bills from suppliers.

The other 76 shops closed for various reasons. Seven shops that closed cited broken equipment or power shortages. Six stations claimed personal reasons such as funerals or weddings were their reasons for closing.

The department said that 25 stations which closed or limited their service said they did so because of losses and they also changed their businesses. Nine gave no explanation.

Suspicion looms over the closings, with many wondering if station owners are just waiting for the next price hike to increase their profits.

Credit growth likely to remain stagnant    

Commercial banks will be hard-pressed to meet the 8-percent credit growth target in the second half of the year despite looser Government monetary policies, said National Advisory Council for Financial and Monetary Policy member Tran Du Lich.

Business demand for capital often increased significantly in the final months of the year, but the rise was not expected to be as dramatic this year in light of large inventories, depressed consumer demand, and shrinking export markets, Loch said.

Exports in the first eight months of the year surged by 17 percent year-on-year, but the rise was mainly attributable to foreign-invested enterprises, according to the General Statistics Office. While retail sales revenue during the period increased 17.5 percent, the inventory index remained high at 20.8 percent.

Many enterprises, already saddled with heavy debt burdens, would only be able to take out new loans if the Government forces commercial banks to refinance existing debts at lower interest rates.

The banking system has so far seen stagnant credit growth, despite adequate liquidity. The central bank had pumped VND180 trillion ($8.57 billion) into the system via various channels by the end of July, but systemwide credit growth in the first eight months has increased by just 1.4 percent since the end of last year, Lich said.

High inflation has also kept interest rates high, he noted. With the consumer price index is targeted at 8 percent this year, deposit interest rates are unlikely to fall below 9 percent per year.

But banks have offered attractive lending interest rates to lure borrowers, LienViet Bank vice chairman Nguyen Duc Huong told the newspaper Dau Tu (Investment). Pham Chi Thanh, head of Vietcombank's business and capital management department, said that his bank would offer six-month loans at interest rate of 6 per cent to qualified borrowers.

Tax cut to help hold line on petrol prices   

The two ministries of Finance, and of Industry and Trade decided yesterday to reduce the import tax rate for petrol and oil instead of increasing petrol and oil retail prices on the domestic market due to higher world oil prices.

The new rate dropped by 2 per cent, from 12 per cent to 10 per cent, to keep retail prices stable at VND23,650 (US$1.12) per litre for A92 petrol and VND21,800 per litre for diesel oil.

The two ministries also decided that petrol and oil traders would get compensation from the price stabilisation fund for their losses due to increases in the world market with rates of between VND550 and VND600 for a litre of petrol, fuel oil and diesel oil.

On August 28, petroleum importers added VND650 per litre to the existing retail prices for petrol and said that they still suffered losses of VND450-760 per litre.

Recently, local petrol dealers submitted a proposal to the Finance Ministry to increase retail petrol prices by VND1,000 per litre and oil prices by VND1,300 per litre.

The dealers said the petrol price in the Singapore market has remained high at US$122.39 a barrel while the diesel price was $136 a barrel. Therefore, they had experienced losses, and that this was what led it to propose that the ministry increase retail prices after 10 days of the previous rise.

This was the fifth consecutive time that petroleum importers proposed a price increase to the ministry. If it is approved, the new retail price would set a new record of more than VND24,000 per litre.

Before prices of petrol and oil surged, some petrol stations closed to wait for the new retail prices of petrol and oil.

The last two times petrol and oil retail prices increased, 220 petrol stations closed, Truong Quang Hoai Nam, head of the ministry's Market Watch Department, said at the Industry and Trade Ministry's meeting with industry and trade departments on Monday.

But 140 out of the 220 petrol stations closed because they could not supply petrol and gas in a timely way and the remaining closed due to objective factors, including mechanical problems and electricity cuts, Nam said.

The department asked its 33 sub-departments nationwide to hold investigations into deficiences in the petrol and gas supply, said Nam, adding that results of the investigations were expected to be released next week.

In the first eight months of this year, the department investigated 5,655 cases of violation and revoked the business licences of 32 petrol and oil trading shops that violated existing petrol and oil trading regulations.

Meanwhile, gas traders said the current price of gas on the world market rose by $50 per tonne to $1,000 against the price early this month.

If the price remains high by the end of this year, the domestic gas traders would increase the retail price on the local market by VND15,000 per 12-kg tank of gas to VND433,000.

On September 1, the local gas price surged by VND51,000 per 12-kg tank to VND418,000.