Physical gold on downward trend amid govt’s tight control 

Despite the global price on a rise, physical gold price in Vietnam still treads water mainly because of the government’s effort to tighten control over gold and US dollar trading on the so-called black market.

Mini gold bars are put into plastic packs at a jewelry shop. Domestic physical gold remains unchanged in spite of the rising global price (Photo:Minh Tri)

The government has unveiled a package of monetary and fiscal tightening measures, and among them is a plan to end the widespread trade in gold bars on the unofficial market.

The central bank said early this month that the issue of licenses for gold bullion trading and production has been stopped.

Prime Minister Nguyen Tan Dung on March 15 confirmed the government’s intention to tighten controls over foreign currency transactions.

A crackdown on illegal dollar hoarding and trading was launched late last month, bringing the black market to a standstill.

Experts said the decrease in foreign exchange rate of the dong and the US dollar over last one month was also among main reasons that put the domestic price of physical gold on downwards trend.

The dollar-dong exchange rate listed at jewelry shops has dropped to VND21,200 for one dollar from VND22,400 since last month, while the rate on the interbank market declined to VND21,000 per dollar from VND21,600.

The capital funds flowing into the gold market, meanwhile, are being hampered by the increasing deposit rate on the dong.

“The domestic physical gold will likely to retreat further, if the global price continues to lose grounds in short-terms. But I expect the domestic price will hardly drop below VND36 million (US$1,800) per tael,” said financial expert Phan Thanh Hai of the Gia Dinh Joint Stock Bank.

Experts said there were profit-taking opportunities for gold investors as domestic gold price remained higher than the international one. However, they had to cautiously study on the precious metal’s price move to catch the right time to make investments, experts warned.

In the international market, gold last week soared to a fresh record, taking silver along with it to 31-year highs as investors bought the precious metals as a safe haven amid growing concerns over the Middle East and Portugal, according to AFP.

Gold hit a record $1,447.82 per ounce in afternoon trade on the London Bullion Market and silver jumped to $38.16 an ounce -- its highest level since February 1980.

"Gold and silver are justifying their reputation as safe havens, which is hardly surprising in the current climate," said Commerzbank analyst Carsten Fritsch in a research note.

"In addition to the war in Libya, the unrest in the Arab region and the disaster in Japan, the debt crisis in eurozone periphery countries has also returned with a vengeance to the centre of market interest."

Additional 53 businesses export seafood to EU

The European Commission has recognised an additional 53 Vietnamese businesses which have enough conditions to export seafood to the market, according to the Vietnam Association of Seafood Exporters and Processors (VASEP).

Businesses had to join strict quality inspection programmes conducted by the EU delegation to get the certificates for export to the EU.

Earlier, 330 businesses were allowed to export their products to the market.

In 2010, the EU imported more than US$1 billion seafood from Vietnam. Currently, the EU is still a big market for Vietnamese seafood products.

Agricultural exports up

Revenue from agricultural exports in March is estimated at US$1.1 billion, raising the sector’s export turnover in the first quarter to US$3.4 billion, a year-on-year increase of 56 percent, according to the Ministry of Agriculture and Rural Development.

During the reviewed period, most agricultural products increased in both volume and value due to market and price advantages, the ministry said.

The country shipped 504,000 tonnes of coffee abroad, and earned US$1 billion, up 46.1 percent in volume and two times in value compared to the same period last year.

In the first quarter, coffee exports hit a record high of over US$1,990 per tonne, while the price of coffee in the domestic market also reached VND47,000 per kilogram.

The US, Belgium and Italy were Vietnam’s major coffee importers.

Vietnam earned US$798 million from exporting 179,000 tonnes of rubber, a rise of nearly 45 percent in volume and 2.5 times in value. The average price was US$4,466 per tonne.

The rubber industry retained its position in large markets, with China taking over 62 percent of the market share.

In the first three months of this year, the country shipped 600,000 tonnes of rice abroad, raking in US$300 million. Indonesia was still Vietnam’s largest rice consumption market, accounting for nearly 40 percent of the country’s total rice exports.

Vietnam also exported 28,000 tonnes of cashew nuts worth US$194 million, a drop of 9.8 percent in quantity and an increase of 21.7 percent in value. However, the sector is running short of raw material.

Opportunities to invest in Vietnamese oil and gas sector

A seminar on investing in the Vietnamese oil and gas sector was held in Hanoi on March 29 under the framework of the Dutch business delegation’s visit to Vietnam.

Representatives from the Ministry of Industry and Trade, the Vietnam National Oil and Gas Group (PVN) and more than 25 Dutch businesses and groups attended the seminar.

The Netherlands is the world’s second largest oil and gas importer. Nearly 20 percent of the gas consumed in Europe is imported by the Netherlands and the country also consumes 30 percent of the natural gas in Europe. It has more than 136,000km of gas distribution pipelines in Europe. Dutch businesses expressed their keen interest in investing in oil and gas exploration, exploitation, and consumption, as well as supplying oil and gas equipment and services and technological solutions for oil refineries.

A PVN official said that PVN wants to strengthen cooperation with foreign businesses, including those from the Netherlands, to explore and exploit gas in Phu Khanh and Hong River. It also wants to cooperate with Dutch businesses in building pipelines to transport gas, service ports in Cam Ranh and Hon La, ports to receive liquidized gas in Thi Vai, Vung Tau, and other oil refinery projects.

Vietnam, Laos strengthen banking cooperation

Vietnam will help Laos improve the qualification of banking officials.

The General Director of the Lao Bank for Social Policies, Bua Song Saynha Vong and his counterpart from the Vietnam Bank for Social Policies, Ha Thi Hanh have signed a cooperative agreement between the two banks in the 2011-2015 term.

The signing ceremony took place in Vientiane, Laos on March 29.

The two sides agreed to exchange experiences in improving the qualification of staff, banking services and capital management, and customer development.

Ms Hanh affirmed that during 2011-2015, Vietnam will help Laos train banking officials and regularly send experts to help Lao partners.

Vietnam, Laos strengthen banking cooperation

Vietnam will help Laos improve the qualification of banking officials.

The General Director of the Lao Bank for Social Policies, Bua Song Saynha Vong and his counterpart from the Vietnam Bank for Social Policies, Ha Thi Hanh have signed a cooperative agreement between the two banks in the 2011-2015 term.

The signing ceremony took place in Vientiane, Laos on March 29.

The two sides agreed to exchange experiences in improving the qualification of staff, banking services and capital management, and customer development.

Ms Hanh affirmed that during 2011-2015, Vietnam will help Laos train banking officials and regularly send experts to help Lao partners.

Jetstar Pacific uses Vietnam aircraft engineers

The low-cost carrier Jetstar Pacific has announced that the Vietnam Authority of Civil Aviation has been granted Category B licences to its first 17 Vietnamese aircraft maintenance engineers.

This is the first time Vietnamese engineers have reached high professional positions in an airline, which were previously filled only by foreign engineers.

Category B is one of the most important certificates in aircraft maintenance, repair and confirmation for operation of the aircraft.

At present, three of the 17 Vietnamese engineers are qualified for holding the position of Category B engineers at Jetstar Pacific.

Doosan Vina produces world’s largest desalinators

The Doosan Heavy Industries Vietnam (Doosan Vina) company is manufacturing the world’s largest desalinators under a US$1.46 billion project signed between Doosan Heavy Industries and Construction and the Saudi Arabian government.

Doosan Vina is responsible for producing three of eight desalinators worth over US$547 million at its plant in Dung Quat Economic Zone in the central province of Quang Ngai.

Once finished by July 2012, each desalinator will weigh 4,000 tonnes and be capable of producing 76 million litres of fresh water per day.

Seminar assesses impact of international economic integration

A seminar was held in HCM City on March 29 by the Ministry of Planning and Investment to assess the impact of the international economic integration on the national economy three years after Vietnam joined the World Trade Organisation (WTO).

Participants presented reports on the process of Vietnam’s economic integration and its impact on trade, institutions, investment and social affairs.

In his report, Deputy Head of the Central Institute for Economic Management (CIEM), Vo Tri Thanh, pointed out the most positive impacts of international economic integration during Vietnam’s three-year WTO membership which include enhancing confidence about the prospects for economic development, stimulating economic development, expanding the market, boosting exports and attracting more FDI, along with improving human resources allocation and reducing poverty and sharpening business competitiveness.

Other proposals made at the seminar focused on implementing policies for international economic integration, improving the quality of growth, increasing the quality of foreign investment, stabilising the macro economy and developing the financial market.

Nokia to set up mobile phone plant in Vietnam

Nokia on March 29 agreed to a long-term lease on land belonging to VSIP Bac Ninh Co. Ltd to set up a mobile phone plant.

It will be the first of its kind in Southeast Asia and Nokia will invest about US$280 million in the initial stage.

Covering an area of 17 hectares about 20km outside Hanoi, in Bac Ninh province, the plant will be put into operation in 2012.  

The brand is now running 10 plants in 9 countries all over the world and plant in Vietnam will be its 11th branch.

Cambodia is a potential market for Vietnamese businesses

Cambodia is a potential market for Vietnamese businesses, however, to conquer this market they must have specific production and trade promotion strategies.

This assessment was made at the seminar “Cambodia- open market for Vietnamese businesses” held in Ho Chi Minh City on March 29.

Vietnamese products are favoured in Cambodia thanks to their reasonable prices and high quality. Two-way trade between the two countries reached US$382 million in the first two months of this year, up 65 percent compared to the same period last year. Vietnam exported goods to Cambodia worth US$306 million, up 44 percent and the main products included plastics, garments, steel and seafood.

Experts said that Vietnamese businesses have not fully exploited this export market as Cambodian infrastructure is poor and lacks a banking payment system, commercial centres, stocks and telecommunications. They have also not paid due attention to long-term investment in the market.

At the seminar, businesses were updated with the latest information about preferential commercial and investment policies in Cambodia and the developing retail distribution network.

Vietnamese trade counselor in Cambodia, Vu Thinh Cuong, said businesses seeking investment opportunities in Cambodia should research partners and projects at Vietnamese representative offices there. He also said that businesses should focus investment on agriculture and industry.

First forestry festival brings success

The first ever Vietnam Wood Furniture and Forest Product Fair saw the signing of 30 contracts and 10 MOUs on cooperation in afforestration, wood processing and forest product export and domestic consumption.

The three-day event, which ended on March 28 in Quy Nhon city, central Binh Dinh province, attracted more than 100,000 visitors, generating VND50 billion in revenue.

A total of 110 domestic and foreign businesses displayed their products in 528 pavilions.

The event was jointly organised by the Ministry of Industry and Trade, the Ministry of Agriculture and Rural Development, the Vietnam Timber and Forest Product Association (VIETFOREST), and the Binh Dinh’s authorities.

Ben Tre exports 10,000 young coconuts to Singapore

A company in the southern Ben Tre province has shipped 10,000 young coconut fruits to a Singaporean client.

Director of Le An Service-Trade and Export Ltd., Co. Le Thanh Phong said his company is negotiating similar contracts with US and Malaysian customers.

Great potential for Vietnam-Denmark cooperation

Danish businesses can help Vietnam with hi-tech equipment and machinery and personnel training, said Danish ambassador to Vietnam John Nielsen.

Ambassador Nielsen emphasized this at an interview granted to a VOV reporter on the sidelines of the seminar on cooperative opportunities between Vietnam and Denmark in the garment and textile sector, which was held in Hanoi on March 28.

The diplomat said there is great potential for cooperation between the two countries as there are 12 Danish companies operating in Vietnam and they can help Vietnamese partners improve their competitiveness and product quality.

Vietnamese businesses should invest more in developing advanced technologies to build strong brand names for the sector, said Mr. Nielsen, adding that Danish businesses can also help their Vietnamese partners improve the working conditions and ensure occupational safety and health for workers.

More products are limited to import

The Ministry of Industry and Trade (MoIT) has issued decision No. 1380 listing groups of goods which are not encouraged to import. 

They are meat, fish, milk, fruits and vegetables, alcohol, beer, automobiles, mobile phones, laptops, tobacco materials.

The MoIT’s statistics showed that in the first two months of 2011, imports of these products reached nearly US$1.1 billion, an increase of 24.8 percent over last year’s same period.

Other products that also need import control such as steel, precious gems and metals increased by 27.7 percent to US$950 million.

Garment exports surge 28 percent

Total garment export revenue in the first quarter of 2011 has increased by 28 percent to nearly US$3 billion. 

The Vietnam Textile and Apparel Association said with market advantages, large orders and a 15-20 percent increase in the prices of products accepted by importers, the garment sector is expected to achieve the yearly target of over US$13 billion in export revenue.

Denmark, Vietnam cooperate in raising pigs

A visiting 22-member delegation from Denmark has visited some farms in Hanoi and Ho Chi Minh City to study the prospects for pig breeding in the country.

The delegation, led by Lindhart B. Nielsenwill, Director of the Pig Research Centre under Danish Agriculture and Food Council, arrived in Vietnam on March 27.

The Danish Pig Breeding Programme, Danbred International, exports pigs to 30 countries and cooperates with 16 distributors worldwide.

The programme owns modern genetic technology to increase the quantity and quality of breeding pigs, which could help Vietnam develop pig breeders, especially when the country must abide by international food safety standards as member of the World Trade Organization (WTO).

During the visit, the Denmark delegation also held talks with Vietnamese partners on food safety, animal heath care and the latest pig breeding production process.

Survey: Vietnam business environment improves

Vietnam’s businesses environment has been remarkably improved, said the Vietnam Chamber of Commerce and Industry (VCCI) in its Vietnam Business Annual Report 2010 released in Hanoi on March 28.

Last year, Vietnam jumped 10 places to rank 78th among 183 countries worldwide in term of favourable business environment and ranked fourth in the list of 10 countries credited with the most successful reforms in the business climate, the report said.

The country maintained its economic growth rate at 6.78 percent with its export revenue increasing by 25.5 percent over 2009.

The improvement was due to the government’s great efforts, including those made during the implementation of Project 30 on administrative reform, said VCCI Chairman Vu Tien Loc.

The overhaul of the legal environment with major changes in market accession and business administration, especially in business registration, has contributed to improving the country’s environment, Loc said.

By the end of 2010, the number of newly registered enterprises rose to 544,394 above the government’s target, Loc noted.

The report, however, pointed out a number of negative impacts on business performance in 2010, including high bank interest rates, consumer price index (CPI) and inflation, inadequate infrastructure, traffic systems and water and waste treatment system facilities, and power shortages.

Vietnam, Denmark strengthen garment and textile cooperation

The Danish embassy held a seminar in Hanoi on March 28 to discuss cooperative opportunities between Vietnam and Denmark in the garment and textile sector.

The seminar also aimed to strengthen the trade and investment relationship between the two countries.

Delegates said that garment and textile is one of Vietnam’s key industries. Last year, it earned an export turnover of more than US$11.2 billion, taking the lead in Vietnam’s key export industries and ranking fifth among the world’s major garment and textile exporters. These achievements were attributed to an abundant and highly-skilled labour force, and the large number of good businesses that meet the strict requirements of foreign markets and can supply large orders from major partners.

However, the sector still has to cope with many difficulties such as a large quantity of imported materials and tough competition from other nations such as China, India and Bangladesh. 

Deputy Minister of Industry and Trade Tran Tuan Anh said that the government of Vietnam has approved the sector’s investment and development strategy until 2015 with a vision for 2020.

The MoIT also passed a development plan until 2015 and a programme for training human resources for the industry, he said.

Danish ambassador John Nielsen said Denmark will support Vietnam’s garment and textile sector in order to develop a sustainable relationship between the two countries.