Petrol, oil prices slashed strongly

The Vietnam National Petroleum Group (Petrolimex) announced its cut of retail prices for some types of fuel nationwide from mid-October 13.

Petrol prices enjoyed a reduction of 670 VND per litre, with RON 95 now charged 23,490 VND while RON 92 petrol and E5 bio-petrol cost 22,890 VND.

A deeper slash of 880 VND was applied on diesel prices. 0.05S and 0.25S diesel fuels cost 20,240 VND and 20,190 VND per litre, respectively.

Meanwhile, the price of kerosene was reduced by 850 VND to 20,500 VND per litre. Fuel oil (FO) price now stands at between 17,030 VND and 17,500 VND per kilogram, reflecting a reduction of 730 VND.

This is the first reduction in fuel retail prices in October and the 15 th since the beginning of the year. The latest price cut was made on September 30.

PM’s visit paves way for fresh deals with Germany

The upcoming official Germany visit of Prime Minister Nguyen Tan Dung, spanning October 14-15, is promising to create new deals between the two countries, especially in trade and investment, said Vietnamese Ambassador to Germany Nguyen Thi Hoang Anh.

During the visit, the second paid by the Government leader, a Vietnam business conference will be held in Stuttgart city of Baden-Wurteberg State, expecting to bring together 200 enterprises of both sides to seek partnerships, she revealed.

Vietnam’s trade with Germany recorded the highest value among the European Union members, with 7.7 billion USD last year. It is likely to hit 10 billion USD in the coming time, noted the ambassador.

Germany’s organisation of an Asia-Pacific Conference of German Businesses in Ho Chi Minh City in this November, which has so far been registered by over 700 enterprises, reflected the country’s keen interest in the Vietnamese market, she said.

In Germany, PM Nguyen Tan Dung is to deliver a speech on security policy in Asia at Korber Foundation in Berlin, the diplomat said.

The Vietnam-Germany relations have flourished since PM Nguyen Tan Dung’s first official visit to the European country in 2008, as shown by the sound affiliation in politics, education and training and science and technology.

Many joint projects have also been effectively implemented, including the Metro line number 2, the German House and the Vietnam-Germany University in Ho Chi Minh City, said the ambassador.

The Strategic Partnership for Future reached between the two countries during the Vietnam visit by German Chancellor Angela Merkel in 2011 has also been specified with a string of plans of actions and projects in various fields, including politics-diplomacy, economics, and education and training, she noted.

Germany has been a large ODA provider for Vietnam, especially in vocational training, energy and climate change response, Ambassador Anh said.

She held that the contacts between localities have also been strengthened and should be further developed in the future.

Vietnam tops frozen fish fillet exports to Brazil

Vietnam surpassed China to become the top exporter of frozen fish fillets to Brazil over the past eight months, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

In the reviewed period, Vietnam sold about 44,000 tonnes of tra (pangasius) fish to Brazil while China shipped 33,000 tonnes, mainly saltwater fish.

By September 15, Vietnamese tra fish exports to the market reached 86.2 million USD, up 19 percent compared to the same period last year and accounted 7.3 percent of the country’s total export of the product.

With the import volume, Brazil remains the second biggest customer of Vietnam’s tra fish, behind the US.

In 2013, Brazil was listed in Vietnam’s top ten seafood importers, recording a value of 123 million USD, nearly 122 million USD of which came from tra fish.

The Brazilian market is increasingly important to Vietnamese exporters of seafood products, especially frozen tra fish fillets since exports to major markets like the EU, the US, and Japan are seeing declines in demand and are facing tariff and technical barriers.-

Vinacomin awarded for outstanding achievements

The State-owned Vietnam National Coal and Mineral Industries Group (Vinacomin) marked its 20th founding anniversary and received the State’s noble order for its accomplishments and contributions to the national development at a ceremony in Hanoi on October 11.

Over the past two decades, the group turned out hundreds of millions of tonnes of coal and developed industries relating to coal, minerals, electricity, chemicals, and explosive materials.

In the first nine months of 2014, it earned 78.3 trillion VND (3.7 billion USD) in revenue, which is a 12 percent increase year on year, meeting 74 percent of the year’s target, Vinacomin’s deputy general director Nguyen Van Bien reported at a recent press meeting.

Of which, the revenue from coal was 39.1 trilion VND (1.86 billion USD), a 12 percent increase year-on-year, and that from mineral amounted to 4.4 trillion VND (209 million USD), up 21 percent.

The group expects a year-on-year 10 percent rise in profits to reach 1.2 trillion VND (57.1 million USD) in the period.

The same time, the group contributed 8.6 trillion VND (409.5 million USD) to the State coffer, and the figure is expected to stand at 13 trillion VND (about 619 million USD) in 2014.

It sets to create jobs for over 120,000 people this year. Meanwhile, the average salary of its workers rose by 5 percent to 7.75 million VND (370 USD) each per month in the first three quarters due to increasing turnover, Bien said.

As the first State-owned enterprise to set up an environment fund, the group has engaged in environmental protection activities while actively applying cutting-edge technologies in production and developing human resources. It has also expanded partnership with businesses around the world.

At the ceremony, National Assembly Chairman Nguyen Sinh Hung awarded the group with the Independence Order, third class.

Addressing the event, Deputy Prime Minister Hoang Trung Hai spoke highly of the group’s efforts and highlighted its role in the national economy.

Pointing out several existing problems such as industrial accidents, low labour productivity and competitiveness, and weak corporate administration, he asked Vinacomin to accelerate restructuring and work harder to merchandise mining, raise productivity and ensure safety for workers.

He also told it to exert every effort to boost sustainable growth so as to deserve a pillar in ensuring the national energy security.

Vietnam moves closer to 148 bln USD export goal

Vietnam raked in 109.63 billion USD from exports in January-September, moving closer to its goal of 148 billion USD which is up around 12 percent year-on-year and 10 percent against the National Assembly’s target.

The nine-month figure marked a 14.2-percent annual gain, with 73 billion USD contributed by foreign investors, up 14.1 percent. Earnings from apparels and cell phones are expected to top 20 billion USD this year, reported the Ministry of Industry and Trade.

Month-on-month, the export revenue fell by 6.6 percent to 12.4 billion USD in September. However, seafood, pepper, cashew nut and coffee soared roughly 25 percent in earnings while vegetables expanded by 42.7 percent on year, said Deputy Director of the ministry’s Agency of Foreign Trade Phan Thi Dieu Ha.

During the nine-month period, Africa beat others to become the fastest-growing importer of Vietnamese goods, notably Egypt and Algeria recording a plus-50 percent expansion.

As Africa is on track to development, it predominantly bought computers, electronic products and accessories, garment, cell phones, transport vehicles and spare parts, machinery, footwear, construction materials, seafood, coffee and pepper from Vietnam.

Latin America and the Caribbean region are also among Vietnam’s major markets, buying 25.22 billion USD worth of goods from the country, a yearly increase of 25 percent. Chile paid out as much as 354 million USD, or a record 132.9 percent growth that is ascribed to the bilateral free trade agreement valid since January 2014.

Earlier in July, Vietnam shipped 250 million USD worth of goods to Chile while spending 203 million USD on imports from the South American country. The figures have ended Vietnam’s long-time history of running trade deficit with Chile.-

Nestle sets up 37 mln USD production facility in Dong Nai

Nestle last week inaugurated a 37 million USD production facility at its Binh An factory in the southern province of Dong Nai’s Amata Industrial Zone.

The facility is dedicated to meeting the growing demand for MILO RTD (Ready-To-Drink) products in Vietnam, said Wayne English, Chairman and CEO of Nestle Indochina.

It is part of the company’s strategy to further strengthen its presence in the growing nutritional beverage sector, he added.

With this project, Nestle increased its investment in Vietnam to 450 million USD with three factories in Dong Nai province.

In addition, the company also has two La Vie fresh water factories in southern Long An and northern Hung Yen provinces.-

Dong Nai profits from grapefruit

Many farmers in the southeastern province of Dong Nai have switched from growing coffee, pepper and fruit to growing green-peel and pink-flesh grapefruit because of high profits.

In Thong Nhat district's Hung Loc commune, for example, Phan Van Xich, the first farmer who planted the specialty grapefruit in Hung Loc, said he knew the soil was suited to plant this kind of grapefruit.

Xich said he visited the Mekong Delta province of Ben Tre, the birthplace of green-peel and pink-flesh grapefruit, to buy seedlings and intercropped them in his coffee and pepper orchard.

"My two-ha grapefruits have had a stable harvest for two years," he said. "My family has earned a profit of more than 400 million VND (19,000 USD) a year."

At harvest time, traders visit his orchard, offering a price of 35,000-40,000 VND (1.6- 1.9 USD) a kilo. They harvest grapefruit themselves, he said.

Green-peel and pink-flesh grapefruit, a speciality fruit, is delicious and sweet, and has high demand, especially during Tet (Lunar New Year) when the price normally reaches 100,000 VND (4.7 USD) a kilo.

The fruit is in high demand in large cities like Ho Chi Minh City and Hanoi.

Other farmers have also intercropped green-peel and pink-flesh grapefruits in coffee or other fruit orchards.

Dang Tuan Thanh in Hung Loc said he cut down 1ha of his 1.5ha coffee orchard to grow green-peel and pink-flesh grapefruit four years ago. The coffee orchard was 25 years old and had a low yield.

Thanh decided to grow the grapefruit after he visited his friend's grapefruit orchard in Dong Nai's Dinh Quan district.

Dinh Quan's green-peel and pink-flesh grapefruits are famous nationwide and have won top prizes at the Southern Delicious and Safe Fruit Contest for many years.

Early this year, Thanh's grapefruit trees began to bear fruit, and he has earned 20 million VND (950 USD) of profits from the first harvest.

Bui Minh Phuong, chairman of the Hung Loc Commune Farmers Association, said the price of green-peel and pink-flesh grapefruit was high in recent years and many farmers planted more grapefruit trees.

"Green-peel and pink-flesh grapefruit is now one of the key fruits here," he said.

More than 40 households in Hung Loc commune have planted green-peel and pink-flesh grapefruit trees on a total area of 50ha under the model of grapefruit-specialised orchards or grapefruit-intercropped orchards, he said.

Previously, the commune had only 10ha of grapefruit.

Hung Loc authorities have encouraged farmers to set up co-operatives to plant grapefruit trees under the Vietnamese Good Agriculture Practice (VietGAP) standards, he said.

In other districts, including Vinh Cuu, Tan Phu, Dinh Quan and Cam My, farmers have earned profits several times higher than profits from other fruits and trees.

Dong Nai has had 1,900ha of grapefruit as of March, up nearly 1000ha against early 2013, according to the province's Department of Agriculture and Rural Development.

Dong Nai farmers have planted several grapefruit varieties, with green-peel and pink-flesh grapefruits accounting for a large area.

Printing industry calls for stronger policy support

The printing inudstry has told the Government to improve policies governing the industry so that it can reach its full potential.

They raised their voice at a workshop held on October 8 by Vietnam Chamber of Commerce and Industry (VCCI) and Vietnam Printing Association (Vinaprint).

The Chairman of Vinaprint Nguyen Van Dong said the Government should remove import permits and simplify business licensing procedures to help printers.

Dong proposed that the Ministry of Information and Communications, instead of the Ministry of Science and Technology, regulate terms for the use of imported machinery and equipment.

He said this meant printing companies would have to get approval from the information ministry to import second-hand machines and devices, Dong said.

The head of Gia Dinh Information Technology University, Nguyen Dang Liem, outlined several requirements to establish a printing company.

He suggested companies should be owned and represented by Vietnamese individuals or organisations.

Another requirement was at least a member of the board of directors was specialised in the printing profession, Liem added.

The chairman of Ho Chi Minh City Printing Association, Le Van Tron, said that many post-printing operations, including cutting, folding, assembling and binding, were done in private homes and were now managed by the authority.

This created a problem for those doing the work because householders were required to perform administrative procedures once carried out by printing companies.

Participants also showed concern about a policy that prevents domestic printing companies from cooperating with each other in processing end products.

The regulation was considered to limit companies' power in competing with foreign players.

HCM City honours 100 outstanding businessmen

A list of 100 outstanding entrepreneurs of Ho Chi Minh City was announced at a ceremony on October 11 as part of activities celebrating the 10th Vietnam Entrepreneurs’ Day (October 13).

The municipal People’s Committee also plans to award certificates of merit to ten individuals who have won the title for many consecutive years.

According to Vice Chairman of the Committee Tat Thanh Cang, thanks to their active contributions, the city’s economic growth reached 9.6 percent in the 2011-2013 period and 8.9 percent in the first nine months of 2014.

In 2013 and the first six months of this year, the 100 outstanding businesspeople created a total revenue of 465 trillion VND (22.1 billion USD), accounting for 26.53 percent of the city’s figure. They contributed more than 28 trillion VND to the local budget.

As Vietnam is in the intensive and extensive international economic integration, entrepreneurs should make more efforts to improve their management capacity and apply measures to bring their products and trademarks to the world, Cang noted.

Bus, taxi firms urged to reduce fares

The Ministry of Transport has told bus and taxi companies to lower their fees in response to recent falls in the price of fuel.

"Fees for air and railway transport have begun to drop, but fees for other transport means have not been adjusted," said Deputy Minister Nguyen Hong Truong

Bus companies refused to lower fees even after the fuel price fell by 8 percent compared to the first quarter of the year. They claim it would take too much time and cost too much money to introduce new fees.

Passengers are frustrated to see fees remain the same. Many say their rights as customers are being violated.

In the past, every time fuel prices fell, bus companies quickly adjusted their fees.

"Our fee adjustment process is complicated. There are new fees to be registered, tickets to be printed out and re-configuring of taxi-meters. These are all costly tasks," said Nguyen Van Thanh, President of the Vietnam Automobile Association.

Thanh said companies will adjust fees when fuel price fluctuations hit 10 percent or more, adding prices fluctuated too often to make regular adjustments.

"It's not easy to get all taxi companies in the city to agree on the new fees. And it costs 8-12 USD to reconfigure one taxi meter," said a representative from Da Nang Taxi Association.

Central highlands provinces enjoy bumper coffee crop

The Central Highlands provinces are expected to produce 1.3 million tonnes of coffee bean this crop, an increase of 600,000 tonnes against the previous crop.

According to the Central Highlands Region Steering Committee, farmer households and coffee production businesses in the area have actively prepared for the start of the November harvesting season, ensuring high-quality products for export.

Coffee producers in the region have recruited more workers and strengthening management while households and businesses have begun renovating thousands of coffee processing facilities to improve output quality.

Moreover, the provinces have also prepared thousands of square meters of land for drying grounds and warehouses, repaired traffic systems, as well as bought hundreds of thousands of new sacks and transportation means.

The coffee plantations in the Central highlands currently cover an area of over 561,000 ha. Dak Lak province, the key coffee growing area in the region, is expected to reap 462,433 tonnes of coffee bean from its 190,208 hectares, an increase of 30,000 tonnes against last year’s crop.

Vietnamese goods hold sway in domestic market

Locally-made products have won consumers’ favour since a campaign titled “Vietnamese prioritise Vietnamese goods” was launched five years ago, President of the Vietnam Fatherland Front (VFF) Central Committee Nguyen Thien Nhan has said.

The front leader was speaking at a conference in Hanoi on October 11 to review the five-year implementation of the campaign, which, he said, has helped change Vietnamese consumers’ awareness of indigenous products.

Apart from generating more jobs and raising income for labourers, the campaign has contributed to establishing a production and supply chain, said Nhan, who is also head of the Central Steering Committee of the campaign.

According to him, under the programme, all cities and provinces will build communication channels with a “Proud of Vietnamese goods” slogan by 2020.

It also aims to raise Vietnamese products’ market share at traditional supply channels at remote, far-flung and rural areas to 80 percent, he added.

To realise the targets, the VFF President required relevant ministries, branches and localities to roll out concrete programmes and plans to further popularise the campaign in the time ahead.

He urged enterprises to accelerate scientific-technological application while improving the quality and competitive edge of products and services.

A survey conducted by Nielsen Company reveals that up to 90 percent of consumers in Ho Chi Minh City and 83 percent in Hanoi made sure that they will choose Vietnamese goods.

A report presented by the municipal and provincial steering committees of the campaign also shows that locally-made products are appreciated by Vietnamese consumers.

In many localities, 80 percent of Vietnamese people prefer made-in-Vietnam garment and footwear products while 58 percent choose local food and vegetables.

Participants at the event also pointed out a range of bottlenecks hindering the implementation of the campaign such as cumbersome procedures, the presence of fake products in the market and a loose coordination between businesses, producers and distributors.

Vehicle sales keep up growth momentum in September

Vehicle sales in September continued on the revival track taken since last May, on the back of multiple launches and improving consumer sentiment.

Vietnam 's 18 leading vehicle manufacturers sold a combined 16,149 units in September, representing a 29-percent month-on-month increase and a 65-percent year-on-year increase, according to the Vietnam Automobile Manufacturers Association (VAMA).

Of the figure, cars made up 10,511 units, representing a 30-percent month-on-month increase, and trucks made up 5,638 units, representing a 25-percent month-on-month increase.

"This is the 18th consecutive month that industry volume has been higher than that of the same period last year," VAMA chairman Jesus Metelo Arias said in a statement released on October 10.

"The total number of vehicle sales for 2014 is predicted to hit 145,000 units, a 32-percent year-on-year increase," Arias added.

Thaco, a domestic car manufacturer, retained its market leadership with sales of 4,195 units or 32 percent of market share in September. Japanese manufacturer Toyota came in second with sales of 3,747 units or 29 percent of market share, followed by US manufacturer Ford with sales of 1,390 units or 10.7 percent of market share.

Booming sales were attributed to attractive financing deals, price discounts, cuts in car registration fees and a brighter economic outlook.

According to the Ministry of Planning and Investment, Vietnam 's economic growth rate in 2014 was set at 5.8 percent and CPI growth at less than 7 percent.

Planning and Investment Minister Bui Quang Vinh said on October 9 that the country's gross domestic product growth could reach 5.8 percent or even higher this year.

The rise in vehicle sales last month was also attributed to the traditional peak in shopping towards the end of the year, usually beginning in mid-September.

In addition, a large number of vehicles that will become obsolete this year also helped trigger demand, as the Government stipulated that trucks more than 25 years old and cars more than 20 years old could no longer be used.

According to the Vietnam Register, a total of 3,388 cars, 13,033 trucks and 67 buses will be taken off the road this year.

Meanwhile, about 7,000 completely-built units (CBU) were imported in September this year, bringing 132 million USD in revenue, the General Statistics Office (GSO) reported.

The number of CBUs in September is about 1,000 units more than that in August, but revenue fell by 4 million USD.

The automobile market has been stable since last June, as the number of imported cars remained at 6,000 units and above per month, the highest in the last three years.

Vietnam Entrepreneurs’ Day marked in Laos

The Association of Vietnam Investors in Laos (AVIL) held a ceremony in Vientiane on October 10 to mark the 10 th anniversary of the Vietnam Entrepreneurs’ Day (October 13).

Addressing the event, AVIL Chairman Nguyen Duc Moc said that this year’s anniversary takes place in the context of the comprehensive and intensive development of the special relationship between Vietnam and Laos .

Despite numerous difficulties, Vietnamese businesses have pumped over 5 billion USD into 410 projects in Laos , making them one of the leading investors in the country, he said, adding that many of the projects have become operational, creating stable jobs for 300,000 local residents.

Vietnam ’s direct investment in Laos is forecast to reach over 5.8 billion USD this year, with two-way trade mushrooming to 1.5-1.7 billion USD.

Moc also thanked the Parties and Governments of both countries for creating favourable conditions for Vietnamese investors to operate in Laos .

Also at the ceremony, the AVIL launched a social welfare programme to provide assistance to needy people in Laos.

Mekong Delta economic cooperation forum to be held in November

The 2014 Mekong Delta - Soc Trang Economic Cooperation Forum will be held in Soc Trang province from November 5-7, the Steering Committee for the Southwestern region told the press in Can Tho City on October 10.

The forum this year will focus on effective measures to foster agriculture restructure and the building of new style rural areas in the region.

It will also be an excellent opportunity to promote trade, advertise the regional image as well as potentials and trademarks, especially in agriculture sector.

Major activities at the forum include a workshop on building climate resilient rural areas and a conference promoting trade and calling for investment in agriculture and rural areas in the Mekong Delta.

Nguyen Phong Quang, deputy head of the Steering Committee for the Southwestern region, expressed his hope that the forum can gather useful ideas on suitable mechanism and policies to tackle challenges facing the region.

Ford Vietnam reported soaring sales in September

Ford Vietnam reported a record sales turnover in September with 1,390 units sold, soaring 90 percent compared to the same period last year.

The growth was thanks to strong demand for the two small-sized models – the EcoSport and the new Fiesta.

According to Ford Vietnam’s statistics, 232 EcoSport cars were sold in September, bringing the total sales of this model to 765 since its first introduction in July 2014, while Fiesta’s sales reached 133 cars.

September’s sales helped push the company’s retail sales for the third quarter to 3,984 units, a 93 percent surge year-on- year.

The company’s Ranger model also took lead in the semi-truck segment in the same month with 459 units sold, soaring 183 percent and the Transit maintained its top position in the commercial van segment with 337 units sold, up 71 percent from one year ago.

Vietnam’s economy needs changes for higher growth

It is time for the economy to make big changes in line with new developmental requirements to anticipate opportunities brought by extensively and deeply international integration, Deputy Minister of Planning and Investment Nguyen Chi Dung said on October 10.

Speaking at a Hanoi workshop exploring challenges and chances for the national economy, Dung stressed that maintaining macro-economic stability and speeding up economic growth continue to be Vietnam’s top priority in the next five years in order to achieve a more sustainable development.

Economists predicted that the world economy may face numerous difficulties and challenges in the coming time. The Vietnamese Government was, therefore, suggested maintaining its target of containing inflation and keeping growth at a reasonable rate in line with both domestic and international situations.

Associate Professor, Doctor Nguyen Van Thanh from the National Centre for Socio-economic Information and Forecast presented two scenarios for the Vietnamese economy in the next five years.

In the first scenario, with growth model changing slowly and State management improving inconsiderably, Vietnam may maintain its growth rate at 6.5 percent and inflation at 6.7 percent, while investment/GDP ratio may reach 13.14 percent.

Meanwhile, in case the growth model is bettered, the country takes full advantage of bilateral and multilateral free trade agreements and State management is improved, the growth rate is forecast to reach 7.1 percent, inflation 7.21 percent and investment/GDP ratio 15.3 percent.

To realise these targets, Deputy Minister Dung highlighted the importance of speeding up the shift of economic structure and growth model and increasing the quality and efficiency of the economy’s competitiveness.

Delegates also proposed increasing scientific and technological applications into production and training high-quality human resources.

Fuel price stabilisation fund surges to record high

As of the third quarter of this year, the balance of the fuel price stabilisation fund had risen to nearly 2.3 trillion VND, the highest since the use of the fund was made known to the public, the Saigon Times Daily reported.

The Ministry of Finance in a report released on October 8 said petrol traders in the third quarter alone collected over 1.1 trillion VND from consumers for the fund, which is used to compensate oil traders for losses they incur when the input cost is higher than the retail price.

In the quarter, the Ministry of Finance and the Ministry of Industry and Trade let fuel trading firms extract an estimated 403.46 billion VND from the fund.

The fund’s balance was recorded at nearly 1.6 trillion VND at the end of the second quarter , but the amount surged to around 2.3 trillion VND at the end of the third quarter. The fund is kept at oil traders who have to periodically report their balances to the Finance Ministry.

In 2013, the balance frequently stayed at only tens of billions of dong, with many oil traders reporting a deficit, meaning the sum collected from consumers was not sufficient to compensate traders.

However, the balance has started picking up this year, from 840 billion VND in the first quarter to 1.5 trillion VND in the following quarter, as the global oil price has steadily fallen while the local price has remained high.

The Ministry of Finance’s report also indicated 15 out of 17 fuel trading firms had the positive balance, with Vietnam National Petroleum Group (Petrolimex) reporting 1.352 trillion VND and PetroVietnam Oil Corporation over 265 billion VND.

Speaking to the Daily on October 8, the leader of a fuel trading firm said the prices of finished petrol products in Singapore had been going down.

Therefore, there is a likelihood that the domestic retail price may decline by up to 500 VND per liter of petrol soon. RON 92 petrol is currently priced at 23,560 VND per liter.

VINACAS urges processors to ensure export cashew quality

The Vietnam Cashew Association (VINACAS) on October 9 recommended its member companies to tighten control over export cashew so as to guarantee the Vietnamese product’s trademark.

VINACAS told processors to pay special attention to the steps of drying, removing testa, and packaging while carefully examining the quality of raw materials.

The processors were also asked to separately process cashew hailing from different sources to ensure the rate of broken nuts is below 10 percent in line with the 2012 standards of the US’s Association of Food Industries.

During the first nine months of 2014, cashew exports posted a 19.6-percent year-on-year rise in volume to 225,000 tonnes and a 21.8-percent year-on-year surge in value to 1.46 billion USD, according to the Ministry of Industry and Trade.

Vietnam has 338 plants processing cashew for export to more than 80 countries and territories worldwide.

The US, China and the Netherlands are Vietnam’s biggest cashew importers.

In 2013, cashew exports brought home 1.8 billion USD.

Vietnam’s wooden, aquatic products gain firm niche in RoK

Two-way trade between Vietnam and the Republic of Korea (RoK) has made significant progress in terms of scale and product structure, according to Vietnam’s Ministry of Industry and Trade (MoIT).

It expanded by 54 times, from 0.5 billion USD in 1992 to the record level of 27.3 billion USD in 2013.

By October 2014, it reached over 18 billion USD with Vietnam’s exports topping 4.4 billion USD and imports hitting nearly 13.8 billion USD, said Le An Hai, deputy head of the MoIT’s Asia-Pacific Market Department.

Notably, wood and wooden products brought home 309 million USD, surging by 48.5 percent, followed by aquatic products with 405 million USD, up 47.2 percent; garment and textile, 1.2 billion USD, up 39.9 percent; and footwear, 208 million USD, 27.6 percent.

The country’s imports from the RoK were mainly industrial products, including computers, automobiles, auto components, machinery, iron and steel, fabrics and footwear materials.

Ta Hoang Linh, deputy head of the MoIT’s Trade Promotion Agency, stated that in order to further boost the exports to the RoK and balance two-way trade, Vietnamese businesses should increase the volume of processed products as well as enhancing the quality of their products, especially agricultural ones.

Hai also pledged that the MoIT will carry out a wide range of activities, notably trade promotion programmes, to support the businesses and stimulate exports to the partner’s market.

The two countries’ trade can exceed 20 billion USD before 2015 once a Free Trade Agreement is signed. Besides, Vietnamese enterprises will be able to seek more partnerships and higher export revenue from the RoK market.

Vietnam’s seafood, agricultural products make way to Singapore

The Ministry of Industry and Trade (MoIT) expects trade turnover between Vietnam and Singapore will increase up to fourfold in the near future from the current modest level.

Vietnam’s agro-forestry-fishery exports only account for below four percent of Singapore’s total imports, Le An Hai, deputy head of the MoIT’s Asian-Pacific Market Department, told Vietnam News Agency correspondents on the sidelines of an October 9 meeting on seafood and agricultural products between representatives from some 40 Singaporean associations and businesses and 16 Vietnamese companies.

Almost all the Vietnamese firms in the delegation to Singapore had gained a foothold here but still wanted to expand their market share, he added.

From October 7-9, the delegation had working sessions with the International Enterprise Singapore, the Agri-Food and Veterinary Authority of Singapore, the Singapore Fruits and Vegetables Importers and Exporters Association, and NTUC Fairprice – the country’s leading supermarket chain.

The two sides discussed the increase of Vietnamese exports, the attraction of Singaporean importers and producers’ investment in Vietnam, and cooperation in animal and plant quarantine, Hai said.

Nguyen Viet Chi, Vietnamese Commercial Counsellor to Singapore, said almost all seafood and agricultural products on sale in the country are imports, and these are of Vietnam’s strength.

Vietnam’s seafood and agricultural exports to Singapore enjoyed an average annual growth of nearly 20 percent, rising from 279 million SGD (219.6 million USD) in 2011 to around 400 million SGD (314.8 million USD) in 2013.

Vietnam is Singapore’s third largest exporter of rice and aquatic products with respective export revenues of nearly 79 million SGD and 92 million SGD in 2013, she elaborated, adding that it is the eighth biggest purveyor of fruits and vegetables in Singapore with around 42 million SGD in revenue last year.

Chi stressed that Singapore’s demand for seafood and agricultural products remain enormous, which is a great opportunity for Vietnamese companies to boost their exports.

Lee Boon Cheow, President of Singapore Fish Merchants General Association, said: “Vietnam’s frozen fish is quite popular in Singapore; the price is very reasonable to suit our market’s demand. Normally, the fish is very good in taste for consumers.”

“Our association will try to increase chilled fish (import) from Vietnam because we can import from Thailand and Myanmar and I think Vietnam is also possible”, he added.

State budget collection likely to exceed estimates

State budget collection for 2014 is likely to exceed estimates by 9 percent, Deputy Minister of Finance Vu Thi Mai said at a regular meeting in Hanoi on October 9.

In the January-September period, 636 trillion VND (30.2 million USD) was collected for the State budget, equal to 81.3 percent of the estimates and representing a year-on-year rise of 17.2 percent.

Meanwhile, the budget spending edged up 11.9 percent to 768 trillion VND (36.5 million USD), she reported.

The Government bonds have also received more attention from investors, especially five-and 10-year-term bonds which made up 25.9 percent and 12.1 percent of the total money mobilised by the State Treasury, in the reviewed period.

To ensure the balance, the ministry is stepping up measures to reform administrative formalities in taxation and customs sectors such as enabling enterprises to use e-tax declarations and facilitating business operation.

Finance officials will also tighten management in the field so that the State budget collection can meet or exceed the estimates.

At the same time, the ministry continues directing taxation and customs agencies and insurance business associations to come up with solutions to back firms overcome difficulties and develop operation.

In addition to thrift practices, the ministry strives to manage and utilise effectively the standby State budget with priorities to preventing natural disasters and diseases.

Vietnam joins European seafood trade web

Vietnam will join the Trade Control and Expert System (TRACES) in granting certificates for seafood exports to the European Union (EU), the government portal chinhphu.vn reported on October 11.

TRACES is a trans-European web-based network for veterinary health that notifies, certifies and monitors imports, exports and trade in animals and animal products around the world.

The National Agro-Forestry-Fisheres Quality Assurance Department (Nafiqad) said it has sent a dispatch notifying the European Commission Directorate General for Health and Consumers (DG SANCO) of its participation in the network after receiving a proposal from the directorate.

The Nafiqad suggested that DG SANCO provide specific guidance and organise training courses for concerned Vietnamese authorities and employees of Vietnamese enterprises involved in exporting seafood to the EU.

The department said joining TRACE would enable it to simplify certification procedures, promptly inform authorities and businesses of the conditions of goods and restrict the falsification of documents.

The European Commission established and began to operate the network in 2003. Concerned authorities and private sector economic operators all over the world can use this system to trace the movement of animals and animal products being traded in the world market.

Thailand- leading fruit and vegetable supplier to Vietnam

Vietnam imports of fruit and vegetables in the eight months leading up to September increased astronomically by 166.82% over last year’s corresponding period to US$125.1 million.

Thailand is now the largest supplier of fruit and vegetables to the Vietnam market trailed by China with US$83.8 million and Myanmar US$42.1 million.

Vietnam principally imports pumpkin, tomato, potato, cabbage, mango, apple and grape from China.

It also imports fruit and vegetables from new markets such as New Zealand, South Africa, India, the Republic of Korea and Israel.

In the first eight months, Vietnam exporters grossed over US$1 billion from exporting fruit and vegetables, up 47.4% on-year.

Opportunity to boost pork exports to Russia

A team of inspectors from Rosselkhoznadzor- a Russian agriculture oversight agency on October 20 will fly to Vietnam to examine pork products to determine if they are up to snuff and fit for import into the Eurasian Economic Community.

Additionally, they will scrutinize a number of Vietnam seafood processing plants has reported the Voice of Russia.

The breakthrough comes as a result of recent trade talks between Director of Rosselkhoznadzor Sergey Dankvert with Deputy Minister of Agriculture and Rural Development (MARD) Vu Van Tam in Moscow.

At the meeting, the two sides agreed the potential for trade between the two nations remains largely untapped and incommensurate with its potential.

Vietnam stands ready to offer beef, pork and poultry to the list of exports official sources report.

Rice exports to face stiff challenges in 2015

The Vietnam Food Association (VFA) is predicting rice export companies will face fierce competition in 2015 as the nation more fully opens its markets in line with World Trade Organization (WTO) commitments.

VFA Vice President Pham Van Bay made the announcement at a conference in Ho Chi Minh City on October 10 discussing the status of the 2014-2015 winter spring crop yield.

The VFA is forecasting rigid competition from Thai rice growers for aromatic rice (Jasmine) and two other varieties in addition to harsh competition from the African market.

In 2014, the output of the Southern Region was estimated at 27.8 million tonnes of rice, an increase of 916,365 tonnes compared to 2013, according to statistics of the Ministry of Agriculture and Rural Development (MARD).

VFA statistics show that in the nine months leading up to the end of September of 2014 rice export companies shipped nearly 4.8 million tonnes, worth about US$2.2 billion to foreign markets.

Local exporters pin high hope on new markets

By the end of September 2014, Vietnam’s exports saw a 14.2% increase to US$109.63 billion in revenue, including US$36.63 billion from the domestic sector and US$73 billion from the FDI sector (including crude oil).

It is forecast that exports of garment and telephone handsets will surpass US$20 billion each this year.

Phan Thi Dieu Ha, Deputy Director of the Import-Export Department under the Ministry of Industry and Trade (MoIT), said despite continuous export growth of many agro-forestry and seafood products, the country’s exports value in September dropped slightly by 6.6% to US$12.4 billion.

In the nine-month period, exports to new markets like African, Latin American and Caribbean countries witnessed a high growth of more than 50%, particularly Northern Africa rising by nearly 60% to US$466 million.

According to the Vietnamese regional Trade Office, the developing African countries have high demand for agricultural products, garment, computers, electronics, telephones and means of transport. Vietnamese businesses should grasp the opportunity to boost exports to this potential market.

Meanwhile, Latin American and Caribbean countries enjoyed an export growth of 25% to US$25.22 billion. Particularly, exports to Chile rocketed 132.9% to US$354 million. The high growth was attributed to the influence of the bilateral free trade agreement which came into effect as from January 2014.

Earlier, in July, Vietnam’s exports to Chile reached US$250 million (up 102%) while imports were US$203 million (up 12%), helping Vietnam obtain trade surplus from Chile for the first time.

Ha said although exports to new market are not high the impressive growth shows that a target for diversifying export market is on the right track. In the fourth quarter, local businesses should accelerate production to meet signed contracts, she suggested.

The MoIT forecast that if there is no obstacle the country’s exports will hit US$148 billion, a year-on-year increase of 12% and up 10% compared to the National Assembly’s set target.

Non-life insurance hits double-digit growth

Non-life insurance premiums managed to return to a double-digit growth in the first eight months of 2014, according to preliminary reports of non-life insurance companies to the Insurance Supervisory Authority.

Non-life insurance premiums were reported to be worth nearly VND18 trillion (US$849.05 million), representing a 10-per cent year-on-year increase, reported Dau Tu Chung Khoan (Securities Investment).

This is a positive development for the non-life insurance market following its sharp decline in 2013, considered its hardest year in the past 20 years. Last year, the non-life insurance market grew by only seven per cent, compared with growth rates of 24.5 per cent in 2010, 17.5 per cent in 2011 and 10.5 per cent in 2012.

PetroVietnam Insurance Corporation (PVI) joined Bao Viet Holdings, Bao Minh Insurance Corporation, PJIC and Post&Telecommunications Insurance Jsc (PTI) in the list of the year's top five non-life insurers.

Bao Minh Insurance posted the highest growth of 16.85 per cent among leading insurers while PVI ranked first in market share in the first eight months of the year with 23.97 per cent, followed by Bao Viet Insurance with 19.45 per cent.

The total compensation value of the non-life insurance sector was estimated at VND6.5 trillion ($309.52 million), a 42.4-per cent year-on-year decline.

Four of the five leading insurers had a compensation rate below 37 per cent except for Bao Viet Insurance, which had 48 per cent.

The total compensation for companies in Binh Duong, Dong Nai and Ha Tinh provinces, which were affected by riots last May, was initially estimated at VND2.5 trillion ($119.05 million). Dau Tu Chung Khoan quoted insurance companies as saying compensation was under way and was being carried out in line with the Government's guidance.

According to Viet Nam Insurance Association, insurance companies need to continue restructuring to enhance competitiveness, prevent cut-throat competition and diversify their range of insurance products.

Soc Trang plans forum to focus on Mekong Delta development

The Cuu Long (Mekong) Delta Economic Cooperation Forum to be held next month in Soc Trang Province will feature the theme of restructuring agriculture and building new rural areas in the Delta.

The eighth annual forum aims to improve cooperation between the Delta region and the rest of the country, including ministries, Government agencies and international organisations, according to Nguyen Phong Quang, permanent deputy head of the Steering Committee for the South-West Region.

The event, to be held from November 5–7, will focus on policies and incentives to help the region cope with climate change.

Leading data company ODS invests in new data centre services

The Online Data Services company has double its data centre from 100 racks to contain 2,000 servers with two rack units (2U) or 4,000 servers with one rack units (1U) up to 200 racks compromising 4,000 servers 2U or 8,000 serves 1U with total investment of US$1 million. The company expects that the expansion would help them to become one of the best service providers with market share from 10 – 15 per cent.

Plastics export earnings rise 18%

The domestic plastic industry has achieved high growth in exports but continues to face difficulties arising from a lack of input materials, said the Viet Nam Plastic Association (VPA).

The Thoi bao Kinh te Viet Nam (Vietnam Economic Times) newspaper quoted the association as saying that in the third quarter of 2014, the industry achieved a 17.9-per cent year-on-year increase in the total export value of plastic products to US$2 billion.

During the period, export value showed strong growth, posting year-on-year increases of 78.28 per cent for the Myanmar market, 69.19 per cent for the Belgian market and 67.73 per cent for the Swedish market.

VPA Chairman Ho Duc Lam said that in the third quarter, Japan was the largest export market for Vietnamese plastic products, accounting for 24.79 per cent of total export value. Export value to Japan had a year-on-year surge of 25.2 per cent, with 20 kinds of plastics products, mainly for transport, packaging and office stationery. The association expected export value to Japan to grow by 13 per cent for this year.

The United States was the second largest export market, accounting for 12.65 per cent of total export value. Export value to the US had a year-on-year surge of 38.69 per cent. The association estimated export value to the US to increase by 11 to 13 per cent, though Vietnamese exporters faced anti-dumping duties for their export of plastic and spongy air bubble bags to the US.

The association and domestic plastic exporters have prepared documents and data for US offices on the sunset review of anti-dumping duties in the last quarter of this year, Lam said.

Meanwhile, the domestic plastic industry also had opportunities to promote products to the European Economic Zone because anti-dumping duties of between eight to 30 per cent were imposed on some Asian countries but not on Viet Nam.

The VPA expected the country to achieve a year-on-year surge of 16.5 per cent in plastic export value to $2.6 billion for 2014, Lam added.

However, domestic plastic producers must import 80 per cent of their input materials, and these accounted for 70 to 80 per cent of production costs, thereby reducing the added value and competitiveness of these products.

To achieve sustainable development in the future, Lam suggested that domestic plastic producers produce plastic material, export environment-friendly products with high added value that meet international health and safety standards and update their production technology. 

Fair highlights high-quality indigenous goods

An exposition featuring high-quality traditional products was held in Hanoi from October 11-13 as part of activities to encourage local people to consume locally-made goods as appealed by the Vietnam Fatherland Front.

Organised by the Vietnam Association of Small- and Medium-sized Enterprises, the fair was formed by 300 booths showcasing locally-produced items hailing from across the country.

Locally-made products have increasingly won consumers’ favour since a campaign titled “Vietnamese prioritise Vietnamese goods” was launched five years ago, according to President of the Vietnam Fatherland Front Central Committee Nguyen Thien Nhan.

At a recent Hanoi conference reviewing the five-year implementation of the campaign, Nhan said the campaign has helped change Vietnamese consumers’ awareness of indigenous products.

Apart from generating more jobs and raising income for labourers, the campaign has contributed to establishing a production and supply chain, said Nhan, who is also head of the Central Steering Committee of the campaign.

Under the programme, all cities and provinces will build communication channels with a “Proud of Vietnamese goods” slogan by 2020, aiming to raise Vietnamese products’ market share at traditional supply channels at remote, far-flung and rural areas to 80 percent.

A survey conducted by Nielsen Company reveals that up to 90 percent of consumers in Ho Chi Minh City and 83 percent in Hanoi made sure that they will choose Vietnamese goods.

A report presented by the municipal and provincial steering committees of the campaign also shows that locally-made products are appreciated by Vietnamese consumers.

In many localities, 80 percent of Vietnamese people prefer made-in-Vietnam garment and footwear products while 58 percent choose local food and vegetables.

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