Prices stir sugar industry

Low quality and high and volatile prices are causing problems for the sugar industry, a conference heard in HCM City yesterday.

Trinh Minh Chau, deputy chairman of the Viet Nam Sugar and Sugarcane Association, said many of the large sugar consumers – like confectionery and beverage makers – want to import sugar though domestic firms have large stocks.

"The sugar industry has an inventory level of 200,000 tonnes," he said. Output in 2011-12 was 1.3 million tonnes.

Vu Quoc Tuan, corporate affairs manager at Nestle Viet Nam, said his company is forced to import because of price and quality.

The price of Vietnamese sugar is often 15-30 per cent higher than that of imports, he said.

"Not all domestic manufacturers can supply sugar that meet our quality requirement."

He and other representatives from large sugar-consuming companies urged Vietnamese producers to raise their quality.

"The standard of Vietnamese sugar must be the same as international standards or we will be left behind," they warned.

Agreeing with delegates, the association said high prices were the biggest shortcoming of the sugar industry. To resolve the problems, the industry would undertake programmes to improve the sugarcane yields and quality and sugar-processing technologies.

Chau said: "Co-operation among manufacturers and users will be strengthened to ensure stable development and benefit."

Truong Phu Chien, general director of confectionery firm Bibica Corporation, complained that sugar prices changed frequently.

"The prices vary during different stages of a crop. Sometimes, it varies by 50 per cent between the start of a crop and harvest. This strongly affects our production.

"But the price of imported sugar is stable, we can import at the same price [at any time]."

He called for limiting the price change during the life a particular crop to around 5 per cent.

This was endorsed by many other participants. Most agreed that sugar prices are not stable and always higher than international prices.

Chau took a dig at some major users, saying they always ask for import quotas but do not use them up.

"[Two years ago] the quota was 300,000 tonnes but companies imported only 252,000 tonnes.

"[Last year] the figures were 250,000 tonnes and 207,000 tonnes respectively. In April these companies asked to import 388,000 tonnes of sugar while domestic firms have a large inventory."

Chien concurred saying that sugar manufacturers and users fail to co-ordinate properly.

The industry hopes to produce 1.5 million tonnes of sugar from the 2012-13 sugarcane crop.

By 2020 it plans to increase output to 2 million tonnes to meet not only domestic demand but also export.

Steel import tax rise to help local producers

The Ministry of Finance is expected to increase import tax on steel products for the second time this year in a bid to tackle the consumption woes of domestic producers.

Under a ministry's draft circular, import tax on cold rolled stainless steel will be raised to 7 per cent from the current 5 per cent level, while the ministry will also consider raising the import tax on other steel products.

The move was made as the country's largest cold rolled stainless steel producer Posco VST, which supplies 70 per cent of the country's total demand, said it had faced consumption issues due to a rising volume of imported steel in the domestic market.

Despite an import tax hike on the product from zero to 5 per cent early this year, the country still saw more than 45,770 tonnes of rolled stainless steel imported to the country in the first five months.

According to the Viet Nam Steel Association (VSA), the country's total cold rolled stainless steel production output will reach 300,000 tonnes this year while demand is estimated to be lower than 250,000 tonnes.

VSA's general secretary Dinh Huy Tam said the expected import tax hike is rational, adding that besides Posco, other steel producers are also facing challenges due to rising imports while demand is low in the domestic market.

Tam said that the country last year imported 5.1 million tonnes of steel while this year saw 4 million tonnes imported in the first eight months of the year. Scrap steel also reached 2.2 million tonnes in January-August compared with 2.6 million tonnes for the whole of last year.

Due to the rising imports, domestic steel producers sold only 3 million tonnes of steel in the first eight months, down 10 per cent over the same period last year, he said.

Wood products company enjoys higher profits

Truong Thanh Furniture (TFF) reported improved earnings in the third quarter of the year, with a net profit of VND15 billion (US$714,200). Over the first nine months of the year, net profit totalled VND18.5 billion, an increase of 32 per cent over the same period last year. TFF climbed to its ceiling price of VND4,000 per share yesterday.

Seafood firm prepares to delist shares

Godaco Seafood Co (AGD) shareholders have approved the company's plan to delist shares from the HCM City Stock Exchange. The company will buy back shares from small shareholders at VND50,000 per share prior to delisting. The company also plans to sell 6-9 million shares to strategic partners at prices of no less than VND55,000 per share. AGD closed yesterday's trading at VND48,300.

Government bond issues on track to meet targets

The Government issued VND83.9 trillion (US$3.9 billion) worth of bonds in the first nine months of the year, meeting almost 84 per cent of its projections for the year. Bond yields in the third quarter ranged from 9.2 to 9.9 per cent, lower than the previous four month period's level of 11-12 per cent. Compared to the same period last year, the value of bonds finding buyers increased by VND26.5 trillion, while yields declined 2-3 per cent.

Decree bars foreign-majority ownership of brokerages

Foreign investors which seek to hold more than 49 per cent of shares in a securities company must acquire full 100-per-cent ownership of the company, under a new decree which bans foreign investors from holding a majority interest in such firms.

Under Decree No 58/2012/ND-CP, issued in pursuant to the Law on Securities, foreign investors are therefore limited to a minority position or full ownership – or they must convert the company into a limited liability company with multiple members, explained the deputy head of the State Securities Commission's business management division, Nguyen Thi Thuc Anh.-

Feed, livestock industry expo opens in HCM City

The latest technologies and products in the livestock industry are on display at the International Feed, Livestock and Meat Processing exhibition, which opened in HCM City yesterday.

The three-day Vietstock 2012 has attracted more than 200 exhibitors from 30 countries, including the UK, the US, the Netherlands, Singapore, China, and Viet Nam.

Speaking at the opening ceremony, Deputy Minister of Agriculture and Rural Development Diep Kinh Tan said despite facing many difficulties, the livestock breeding industry has grown annually at 6-7 per cent and contributed to economic development.

Vingroup opens doors to Vincom Centre A

Leading property developer Vingroup launched Vietnam’s premier shopping mall, entertainment and food complex on October 10, 2012 in Ho Chi Minh City.

Positioned in the heart of the city with four fronts facing arterial roads and designed following top shopping mall models, Vincom Centre A is appraised as a premier trade venue in the country highlighting the presence of global top brands.

This is also the fifth trade centre, under the Vincom Centre brand, invested and developed by Vingroup which all brought into service.

It consists of six basements and nine floors covering 91,000 square metres gross floor area including over 38,000sqm shopping mall with three basements and four floors, top-notch Vinpearl Luxury Ho Chi Minh City Hotel with around 300 VIP rooms and over 25,000sq.m underground parking lots.

With an intensive construction pace, Vincom Centre A’s shopping mall section was completed and entered into service within schedule with strong presence of top local and international brands.

Developed by Vingroup, a Vietnam top hi-end property developer with extensive experience in operating and managing big shopping and entertainment complexes across Vietnam, after eight months of its official lease offer Vincom Centre A posted impressive occupancy rates.

Accordingly, over 95 per cent of total space was leased out, particularly the restaurant, cafeteria, fast food areas. There is a 95 per cent occupancy rate in luxury fashion, jewelries and accessories zone.

“Vingroup is committed to turning Vincom Centre A a shopping paradise right here in Vietnam as an ideal venue in the city. We would like to bring customers’ unique shopping experiences through approaching global leading brands and excellent services,” said Vingroup’s deputy chairman Le Khac Hiep.

Vincom Centre A also features convenient transport links. The complex is connected to the Ben Thanh-Suoi Tien Metro Route through an underpass, which greatly facilitates the circulation of tourists from other areas to the shopping mall, especially from Tan Son Nhat International Airport.

Easy accessibility will maximise business opportunities for tenants and bring about premium shopping and entertainment experiences to all customers.

Following the success of Vincom Centre B shopping mall which came online from April 2010, the launching of Vincom Centre A helps create a premier world-class shopping-recreational development in Ho Chi Minh City and Vietnam.

Top-class Vinpearl Luxury Ho Chi Minh City is slated to be opened in early 2013 to wrap up entire complex construction.
In conjunction to the launching ceremony, both Vincom Centre A and Vincom Centre B shopping malls simultaneously offer customers generous promotional programmes:

- Offering complimentary vouchers worth a total VND10 billion ($480,000) to customers.

Accordingly, from October 10, 2012 until gifts were given out each payment voucher worth from VND2 million ($95) customers will receive a complimentary voucher valued at VND150,000 ($7). For MasterCard holders, each payment voucher worth from VND3 million ($142) at Vincom Centre A will be rewarded VND200,000 ($9) complimentary voucher.

- Specifically, customers at Vincom Centre A could retain shopping moments at a photo-booth facing Nguyen Hue road with interactive screen which can be loaded directly into customers’ Facebook or Vincom Centre Fanpage. The 10 most favoured footage will win 10 modern cell phone Lumia 900s from donor Nokia.

Bac Ninh revokes licence from Arirang Vina Co

The People's Committee of northern Bac Ninh Province has revoked the investment licence of the Arirang Vina Company because of the company's "inefficient operation."

The provincial authorities who gave the licence to Arirang Vina in July last year, ordered the company to stop its production activities and perform its financial obligations.

Kyocera photocopier plant to start operations next year

The Kyocera Viet Nam Office Machine Technology Ltd Company, under Japanese Kyocera Mita Group, planned to put its factory producing printers and photocopiers into operation next year in the Viet Nam – Singapore Industrial Park (VSIP)'s Hai Phong Urban, Industrial and Service Area.

The factory had a total investment of US$187.5 million and began building in March last year. It will be the first factory to come into operation in VSIP Hai Phong and is expected to employ 2,000 local workers.

Asian cities join efforts in promoting tourism

The 11th annual meeting of the Council for the Promotion of Tourism in Asia (CPTA) officially began yesterday in Ha Noi.

Representatives from the eight member cities of Tokyo, New Delhi, Kuala Lumpur, Bangkok, Jakarta, Seoul, Taipei and Ha Noi were present, together with two observing delegations from Ulaanbaatar and the Russian city of Tomsk.

The 4-day event is featuring discussions to summarise and design co-operative activities among member cities to attract visitors from Europe, North America, Oceania and within the Asian region. This forms part of the CPTA's "Welcome to Asia Campaign" which was launched in 2002.-

Vinacomin targets Q4 coal sales of 40 million tonnes

The Viet Nam National Coal and Mineral Industries Group (Vinacomin) has set a target of producing 12.3 million tonnes of coal in the fourth quarter of this year, which would take the total volume created up to approximately 40 million tonnes.

Despite encountering several business difficulties, Vinacomin was still able to produce 33.2 million tonnes of coal during the first nine months, a sum equivalent to 68 per cent of the yearly target.

Vinacomin has exported 9.5 million tonnes of coal this year.

Construction to begin on Nghi Son refinery
 
Construction of Viet Nam's largest oil refinery complex is expected to start this quarter, says PetroVietnam's chairman Phung Dinh Thuc.

Preparation work for the construction is virtually completed and there are only a few details to be discussed among investors including PetroVietnam, Kuwait Petroleum International, Japan's Idemitsu Kosan Co and Mitsui Chemicals, Thuc added.

Total capital investment for the refinery project is worth nearly US$8 billion. It will be built in the central province of Thanh Hoa, 215km south of Ha Noi and will initially have a production capacity of 10 million tonnes per year.

Dung Quat refinery, built in the country's central coast to process 130,500 barrels per day of crude oil, is now Viet Nam's sole operating facility. Together with Dung Quat refinery, Nghi Son plant is expected to provide roughly 50 per cent of Viet Nam's gasoline demand, Vietnam Economic Times reports.

In another development, Petro Vietnam (PVN) said on Monday it had the Prime Minister's approval to become the sole agent to buy all investors' gas products and sell them to domestic consumers at one price nationwide.

According to PetroVietnam's chairman Phung Dinh Thuc, the selling gas prices for households power, nitrogenous and industrial productions varies. The price depends on location, gas production capacity and the investment capital of gas fields.

Gas prices in the east, including Nam Con Son and Cuu Long basins, are usually sold at cheaper prices than those offered in the west, including MP3 gas – Ca Mau. As a result, households often choose to buy gas from the east. This has led to a quick depletion at these fields while gas providers in the west face a supply surplus.

Viet Nam has planned for five other oil refineries, including Nghi Son.

Gov't deal to boost use of local products

More than ten large groups belonging to the Ministry of Industry and Trade signed a voluntary co-operation agreement on Tuesday stating they would use each others' products. By doing so, they hoped to boost consumption of Vietnamese goods and help each other solve business difficulties.

The groups include Viet Nam National Oil and Gas Group, Viet Nam Coal and Mineral Industries Group, Viet Nam Garment and Textiles Group, Viet Nam Paper Corporation and Viet Nam Industrial Construction Corporation.

Minister Vu Huy Hoang said the strategy would contribute to the national campaign "Vietnamese people using Vietnamese goods" which was launched in 2010. Enterprises throughout the country will also be asked to co-operate with one another in the near future.

Chairman of Electricity of Viet Nam Hoang Quoc Vuong said this action was essential for the country's development. "EVN will take the agreement very seriously and work with other State-owned enterprises to overcome difficulties," he said.

At present, EVN needs coal, fuel, power and electric facilities and looks to sell power, transformers and electric cables.

General Director of Viet Nam Textiles and Garment Corporation Tran Quang Nghi said his company had recently made great improvements in product quality and design, and had also succeeded in using more local materials.

Two months ago, the ministry instructed enterprises nationwide to consume more domestic goods in order to solve difficulties in production and business. The ministry's enterprises would take the lead in this initiative.

The ministry has also told its branches in major cities and provinces to determine whether the enterprises could meet local demand.

The volume of inventory items remained high in comparison with the same period last year, according to the ministry. There are about 8.9 million tonnes of coal in stock, while the inventory rate of iron, steel and cast iron increased by between 30 and 45 per cent and the rate of other items such as fertiliser, plastic products, and cars and motorbikes went up by 20 per cent.

Director of the ministry's Domestic Market Department Vo Van Quyen said the enterprises' potential to consume domestic products was very high. For example, Viet Nam Chemical Corporation wants to buy coal, various papers, labour uniforms and sell auto and motorbike tyres and tubes, pullers, chemicals, welding rods and fertiliser. Meanwhile Saigon Beer Alcohol Beverage Corporation requires coal, various papers and plastic packing.

Although the country still faces a shortage of materials and advanced technologies, if each enterprise increases its production capacity, domestic materials may meet demand.

Vinacomin targets coal sales of 40 million tonnes

The Vietnam National Coal and Mineral Industries Group (Vinacomin) has set a target of producing 12.3 million tonnes of coal in the fourth quarter of this year in a bid to achieve sales of  about 40 million tonnes this year.

Despite encountering several business difficulties, Vinacomin was still able to produce 33.2 million tonnes of coal during the first nine months, a volume equivalent to 68 percent of the yearly target.

Vinacomin has exported 9.5 million tonnes of coal so far this year. The Group’s total revenue in the first nine months reached 60.4 trillion VND.
Apart from coal products, the Group produced 471 million tonnes of bar tin, over 5,000 tonnes of zinc, almost 35,000 tonnes of fine bronze ore and over 6,000 tonnes of plate bronze, 4,555 million KWh of power and other mechanical products.

Conference: staff vital for better banking operation

The banking and finance sector should define staff training restructure and scale to meet the industry's development, said an official from the State Bank of Vietnam (SBV).

At a regional conference on aligning human resources to improve the competitiveness of the finance industry held in Hanoi on October 10, Tran Huu Thang, Deputy Director of the SBV’s Human Resources Department said human resources were one of the most vital aspects of the sector, especially in the overall restructuring process to enhance its competitiveness, creating a sustainable and transparent foundation.

He said the number of people who were specialised in the banking sector was lower than other sectors, despite the high number working in the industry.

Statistics showed that the percentage of people who were post-graduates in the sector accounted for 1.35 percent, while the average was 1.75 percent.

By the end of 2010, the sector employed more than 175,000 people with a growth rate of 10 percent in the period of 2000-10, 7.2 percent higher than the average economic growth.

He added that human resources had not been well used. For example, the central bank lacked economic specialists who had the capacity to research, forecast and build strategies to develop the banking system.

"The sector's human resources have not met the requirements of global integration as we lack useful tools to measure human management such as a set of career standards," he said.

The deputy said the sector also faced brain-drain because of inadequate and inappropriate policies.

Stephen Choo, Haygroup's director and regional head of Insight of ASEAN, said universities had succeeded in providing enough people for the sector, but the quality issue should be reviewed.

He said banks and universities should work together to clarify what knowledge was needed to fill the gap between education and reality.-

Construction to begin on Nghi Son refinery

Construction of Vietnam's largest oil refinery complex is expected to start this quarter, says PetroVietnam's chairman Phung Dinh Thuc.

Preparatory work for the construction is virtually completed and there are only a few details to be discussed among investors including PetroVietnam, Kuwait Petroleum International, Japan's Idemitsu Kosan Co and Mitsui Chemicals, Thuc added.

Total capital investment for the refinery project is worth nearly 8 billion USD.

The refinery will be built in the central province of Thanh Hoa, 215km south of Hanoi and will initially have a production capacity of 10 million tonnes per year.

Dung Quat refinery, built in the country's central coast to process 130,500 barrels per day of crude oil, is now Vietnam's sole operating facility.

Together with Dung Quat refinery, Nghi Son plant is expected to provide roughly 50 percent of Vietnam's gasoline demand, said Vietnam Economic Times.

Vietnam has planned for five other oil refineries, including Nghi Son.

Seminar eyes strategy for Mekong River basin

The Viet Nam National Mekong Committee (VMC) held a brainstorming seminar in Ha Noi yesterday, with a view to building a national action plan for the Mekong River basin development strategy.

Participants at the event agreed the long-term goal of the strategy is to strengthen the general management of water resources in the Cuu Long (Mekong) Delta and Central Highlands regions, as well as creating a legal and technical framework for co-operation within the Mekong Commission.

They suggested Viet Nam should define short term project goals for assisting national policies and strategies, while updating scenarios for the basin development.

The VMC highlighted the 10V sub-region, known as the Cuu Long (Mekong) Delta and 7V sub-region, including Se San – Srepok river basins. Both have a strategically important position in national socio-economic development and political security, and are vital for promoting co-operation with the Mekong Commission member countries.

The committee also proposed projects for the Cuu Long (Mekong) Delta and Central Highlands regions with goals aimed towards the sustainable development of water resources at national and basin levels.

The 4,800-km Mekong river originates from Tibet, running through China, Myanmar, Laos, Thailand, Cambodia and Viet Nam. The Mekong river basin covers an area of 795,000 sq.km and is home to 60 million people, including 20 million living in Viet Nam's Cuu Long (Mekong) Delta and Central Highlands regions.

Vietnam, Germany ink cooperation agreement

Vietnam and Germany signed a EUR272 million agreement in Hanoi on October 11 to implement development cooperation projects and programmes.    

Signatories to the document were Deputy Minister of Finance Tran Xuan Ha and German Ambassador Jutta Frasch.

Ha said that the German Government is committed to providing EUR22 million in official development assistance (ODA), EUR5 million in non-refundable aid and EUR245 million in development aid to implement the programmes and projects.

He assured that the Ministry of Finance will work closely together with relevant ministries and agencies to use the capital sources effectively, especially investment in social security, environmental protection, transport and vocational training.

Local exporters eye EU and US markets

Exports to the European Union and the US remained Vietnam’s leading export markets have accounted for 34.6 percent of the country’s total export turnover so far this year.

They reached US$29.1 billion in the first three quarters, and are expected to rise to US$38.5 billion by the end of the year, much higher than last year’sfigure.

Nguyen Tien Vy, Head of the Planning Department under the Ministry of Industry and Trade (MoIT), estimates Vietnam’s total export turnover at US$83.78 billion by September, up 18.9 percent over the same period last year.

He says even there are growing demand for consumer goods from these two markets. local exporters should be more cautious about seasonal fluctuations and anti-dumping suits against imports from Vietnam.

Susan Schwab, a former US trade representative, suggests Vietnam should also boost exports to other countries. Too much dependence on the US market may put them at risk. History show that Vietnam has more than once run into trouble when the US put up technical barriers to maintain its trade balance, she says.

Economist Bui Kien Thanh says there is a limit to Vietnam’s vallu-added export items, including footwear, garment and textile products, which are simply based on low-cost labour.

Thanh says local businesses should focus on exploiting agricultural products and consumer goods of high value which are much sought after in the world.

Aside from the EU and US, China is also considered one of Vietnam’s leading trade partners, which made up 20.5 percent of total turnover in the first nine months of this year.

Nevertheless, there’s growing concern about Vietnam’s too much dependence on imports from China.

According to the General Statistics Office (GSO), Vietnam has recently imported a huge volume of input materials from China, including machinery, spare parts, telephones, computers, electronics, garment and textile materials, petrol, fertilisers, and food for animals.

Dao Ngoc Chuong, Deputy Head of the MoIT’s Asia-Pacific Market Department, attributes Vietnam’s import surplus from the Chinese market to the weak development of local support industries to meet increasing demand for domestic production and export businesses even in the short run.

Moreover, he says, China is at a greater advantage than Vietnam in terms of price gauging and geographical position.

Chuong reveals that Vietnam needs not only input materials but also cheap consumer products which are mostly imported through unofficial channels. Hence, the exact figure of Vietnam’s total import surplus from China is yet to be determined.

He warns as China is exporting inferior products to less developed countries, Vietnam should have second thoughts about importing input materials from this market.

Obviously, Vietnam’s import-export performance remains too much dependent on overseas markets and need to adapt to a more dynamic development trend.

Doosan Vina produces power plant boilers for India

The RoK-invested Doosan Heavy Industries Vietnam Co., Ltd. (Doosan Vina) will produce boilers for a thermal power plant in India under a US$77 million contract signed recently.

Doosan Visa General Director Ryu Hang-ha said on October 11 that the two boilers with a capacity of 800MW each will be installed at Kudgi power plant in India’s southwestern region in 2014.

These will be the two biggest boilers to be manufactured ever in Vietnam, raising Doosan Vina’s profile in designing and producing boilers for power plants in the world.

Earlier, Doosan Vina has provided two boilers for Mong Duong 2 thermal power plant in Quang Ninh province.

The company has exported made-in-Vietnam boilers to Brazil, Saudi Arabia, India and Egypt.

Seminar improves hygiene safety for animal husbandry

A seminar was held in HCM City on October 11 by the Animal Husbandry Department under the Ministry of Agriculture and Rural Development (MARD) to increase hygiene safety in the breeding sector.

The event is part of a fair, exhibition and international seminar for the breeding and processing sectors that is taking place from October 10-12.

Currently, the value of animal husbandry products account for nearly 30 percent of agricultural input costs, and the figure is predicted to reach 42 percent by 2020.

Under the MARD’s breeding strategy, the sector will annually produce 5.5 million tonnes of meat, 14 billion eggs and 1 million tonnes of milk by 2020.

Participants said that to reach these goals, the sector needs to shift traditional breeding models to more modern methods which stringently manage processing to ensure the quality of products for consumers.

Accordingly, breeders are required to strictly control epidemics and input products such as breeding stock and animal feeds.

Hoang Kim Giao, Head of the Animal Husbandry Department, said it is essential to share experience in building farms, ensure healthy breeding stock and feed, and guide breeders to properly implement new breeding processes.

If integrity is maintained in terms of bio-safety, slaughtering, processing, transport and delivery, the sector will be confident in providing consumers with safe products that have positive benefits for human health, he said.

Construction to begin on Nghi Son refinery

Construction of Vietnam's largest oil refinery complex is expected to start this quarter, says PetroVietnam's chairman Phung Dinh Thuc.

Preparatory work for the project is virtually completed and there are only a few details to be discussed among investors including PetroVietnam, Kuwait Petroleum International, Japan's Idemitsu Kosan Co and Mitsui Chemicals, Thuc says.

The refinery, costing nearly US$8 billion, will be built in the central province of Thanh Hoa, 215km south of Hanoi and will initially have a production capacity of 10 million tonnes per year.

Dung Quat refinery, built in the country's central coast to process 130,500 barrels of crude oil per day, is now Vietnam's sole operating facility.

Together with Dung Quat refinery, Nghi Son plant is expected to provide roughly 50 percent of Vietnam's gasoline demand, said Vietnam Economic Times.

Vietnam has planned for five other oil refineries, including Nghi Son.

Vincom Center A shopping complex opens in HCMC

The newly constructed Vincom Center A shopping complex was officially opened by its investor Vingroup in Ho Chi Minh City on October 10.

The commercial complex is located in the center of Ho Chi Minh City, on prime location known as Eden Quadrangle shaped by the four streets of Dong Khoi, Le Thanh Ton, Nguyen Hue and Le Loi.

The Vincom Center A was completed in 19 months and is designed with six basements and nine floors.

This is the 5th Trade Center in the center of the City and run by Vingroup. The design is that of a high-end shopping center, having features of well-known shopping centers in the world.

Though it has just opened, more than 95 percent of the Trade Center has already been leased out, including areas for restaurants, cafes, fast food joints; electric, IT, audio, health care instruments; appliances, furniture, decor; clothes, fashion, luxury accessories.

The Vincom Center A has six underground floors and nine upper storeys over a total floor area of 91,000 square meters, including commercial space over 38,000 square meters that is located in three underground floors and four surface floors.

Besides the commercial center, Vincom Center A also includes the 5-star hotel Vinpearl Luxury HCMC with some 300 luxury hotel rooms and an underground parking area over 25,000 square meters.

The project owner expected the commercial center and hotel complex to satisfy the demand for shopping, entertainment and relaxation for local residents as well as foreign tourists.

In the future, the first municipal metro system will have a station based in the second basement of the commercial building to facilitate visitors’ travel.

In addition, the complex is also connected to the Metro tunnel and an underground 3-storey car parking which is convenient for tourists, as there is parking shortage in the central area of District 1.

According to the plan, from 2013 an indoor swimming pool, gym & spa, outdoor cafe and modern convening halls will be opened at the luxury Vinpearl Hotel, from the 5th floor to the 9th floor of Vincom Center A complex.

The project owner Vincom Joint Stock Company under Vingroup said it had started seeking tenants for the 38,000 square meter retail area as the project’s hardware has been completed. However, the company declined to reveal the specific offer prices.

Previously, Vingroup had put into service the Vincom Center B on Le Thanh Ton Street in District 1. The group is expanding its commercial center network nationwide to meet the rising demand for retail space in big cities.

In addition to the Vincom Center A project, several large-scale projects will also start to seek tenants for retail space.

For example, Phu My Hung Joint Venture Company has just put into operation the commercial center Crescent Mall along Nguyen Van Linh Boulevard in Phu My Hung New Urban Area in District 7.

The project worth VND2.31 trillion in investment capital covers 45,000 square meters in retail and commercial areas. At present, 85 percent of the retail sites of the project have been occupied, with the leasing prices ranging from US$40 to $60 per square meter.

Phu My Hung Company said 113 leasing contracts had been signed for 6 floors of the building, including supermarkets, a cinema complex and restaurants.

According to a market survey conducted by Savills Vietnam, total retail space supply in HCMC is currently 620,000 square meters.

The last quarter recorded average occupancy of 86 percent, with a slight increase in leasing prices in central areas, while those in the outskirts dropped a bit.

Advertisers care little about copyright issues in media  

Advertisers are not yet accustomed to paying attention to whether newspapers, online news sites and social networks which they use for their ad campaigns infringe copyrights or intellectual property rights.
 
The idea was shared by representatives of numerous foreign-invested companies in interviews with the Daily after Coca-Cola and Samsung had removed their advertisements from the online music website Zing Mp3 of VNG Co. given concerns about music copyrights on the site.

According to these companies, especially multinationals operating in Vietnam like Toyota and Sony, as leading brands worldwide, they always choose prestigious newspapers with big circulation or websites with high traffic to advertise their products. However, they also admitted failing to check if these media violate copyrights or intellectual property rights or not.

Administrators of websites and news sites are responsible for the copyrights they use. Only when certain copyright violations are detected, advertisers will seek solutions for the problems, representatives of a number of enterprises having their products advertised on websites said.

Regarding the moves of Coca-Cola and Samsung, Truong Van Quy, general director of EQVN Technology and Media Co. specializing in online marketing, said both companies had wise solutions. Both had successfully protected their brands in the local market and in the business community, Quy explained.

“The problem has also changed the mindset of other local brands when they look for channels for promoting their products,” Quy told the Daily.

Similarly, Do Kim Dung, vice chairman of the Vietnam Advertising Association, described the decisions of Coca-Cola and Samsung as very lucid at this time. The two giants have rung an alarm bell regarding intellectual property rights infringements in the nation, he said.

“Other popular brands like Tan Hiep Phat, Vinamilk and MobiFone might have to follow the example of Coca-Cola and Samsung; otherwise, they will face objections from intelligent consumers and media,” said Dung, who is also director of the Advertising Research and Training Institute of Vietnam. He advised local people not to tolerate fraudulent business activities and he even called for competent authorities to get tough on the copyright issue.

Becamex opens technology incubatory center

Becamex IDC Corporation has just established Becamex Technology Incubatory Center (Becamex TIC) and will open the center next month with an aim to support new companies involved in technology areas.

With a total area of over 2,000 square meters in the Eastern International University in Binh Duong Province, the center boasts information technology facilities as well as office space for business startups to incubate new creative ideas.

Nguyen Hong Hai, general director of Becamex TIC, said the center will provide support to new startups free of charge, including space and IT infrastructure rents and capital, besides giving them free consulting services.

The facility now has established a group of consultants who are working for global technology giants like Microsoft, Xbox and Sharp. These people are in charge of linking Vietnamese businesses with foreign technology markets.

In the first phase, Becamex TIC will concentrate on assisting technology application and creation entities in developing intellectual products, electronic commercial products and solutions for mobile equipments. The center will choose targeted companies based on the quality of their manpower and the ideas they want to carry out.

There are thousands of firms founded in the IT sector every year but the ratio of successful enterprises is very small due to capital shortages, difficulties to find outlets for products and poor knowledge of international markets, Hai said. He expected Becamex TIC to help local companies solve such problems, with about 30 new IT enterprises targeted in the first two years.

Japan assists Vietnam in eco-city projects

Japan will assist Vietnam in developing eco-city projects, said Japan’s Minister of Land, Infrastructure, Traffic and Tourism Hata Yuichiro.

At a meeting with the leader of Binh Duong Province on Wednesday, the visiting Japanese official said Vietnam is strongly promoting the development of urban infrastructure with attention to eco-cities. Therefore, Japan will provide Vietnam with technical support and personnel training to develop modern and eco-friendly urban areas.

“Japan is experienced in developing eco-cities. We will share our experience with Vietnam,” said Hata.

This is the first time that Hata has paid a visit to Vietnam. Binh Duong is chosen as the first destination for the delegation of Japanese high-ranking officials.

The Japanese minister said he had heard of the striking development of Binh Duong and wanted to survey this province.

“Through our survey at the ongoing Binh Duong New City project, we find that this project will be great success in the future. Therefore, Japan’s government will assist Japanese firms investing in this urban area,” Hata committed.

He is very supportive of the Tokyu Binh Duong Garden City project developed by the joint venture between Tokyu Corporation and Becamex IDC. The success of this project will promote other urban projects with participation of Japanese investors in the coming time, said Hata.

He informed several Japanese investors had shown interest in eco-urban projects in Vietnam.

Binh Duong chairman Le Thanh Cung pledged to facilitate the Becamex Tokyu joint venture to deploy its project on schedule.

Apart from the US$1.2-billion developed by this joint venture, Japan is studying another eco-urban project in Binh Duong, which is part of the plan for developing satellite cities by Japanese investors.

Since the middle of this year, Japan has joined hands with several ministries and localities, such as Hanoi, Vinh Phuc and Binh Duong, to organize workshops on the development of eco-cities in Vietnam. Hundreds of businesses, investors and urban development agencies from both countries have attended such events to look for cooperation chances.

Eco-city projects will be developed on funds provided by Japanese leading firms, using modern technology, forming large-scale eco-friendly and energy-saving cities connected to the core urban areas through the system of roads, railways and subways.

Modern trade forecast to grow strongly

Modern trade in Vietnam will make strong development steps in the next ten years, with the annual growth rate expected to rise from the current 10-20% to 20-35%, said experts of Kantar Worldpanel Vietnam.

Speaking at the tenth anniversary of the presence of the market researcher in Vietnam, David Anjoubault, commercial director of Kantar Worldpanel Vietnam, said big cities in Vietnam witnessed expansion of the middle-class in the last five years. The percentage of households with monthly income per capita of VND2 million or above has reached 43%.

As a result, urban consumers are shifting their shopping from traditional to modern channels. Since the first supermarket was opened in HCMC in 1994, some 640 supermarkets and hypermarkets, 120 shopping centers and over 1,000 convenience stores have been set up nationwide.

In the period from 1994 to 2004, modern trade grew at an annual rate of some 10%. Since 2005 to date, the growth rate is 10-20% per year.

Modern trade is forecast to grow faster in the next ten years, at a rate of 20-35% a year, when more foreign retailers enter the Vietnamese market.

In the next ten years, supermarkets and hypermarkets will still prevail. Mini-markets and convenience stores will gradually replace traditional shops in downtown areas of big cities, while hypermarkets, shopping centers and commercial complexes are said to develop strongly in the outskirts.

Regardless of the global economic crisis, the Vietnamese market is still developing rapidly, proven by the fact that households spent as much as US$1.7 billion in fast-moving consumer goods last year. With an annual growth rate estimated at 12% in the next ten years, the figure will reach some US$8 billion.

Fabrice Carrasco, managing director of Kantar Worldpanel in Vietnam, Indonesia and the Philippines, said Vietnam will remain an attractive retail market in the next ten years.

He said 90% of the managing directors at the surveyed companies replied Asia-Pacific would be their main playground. Vietnam, with the third biggest population in Southeast Asia, is seen as a potential market.

However, for a hotly growing economy, environmental issues and underdeveloped infrastructure system are obstacles to development.

Experts of Kantar Worldpanel said traditional trade would continue to play the leading role in the next ten years. They explained three-fourths of the fast-moving consumer goods had been distributed through traditional markets and grocery stores, and only one-fourth were distributed via modern shopping channels.

Experts dwell on customs, taxation

Policymakers and experts yesterday discussed the evolution and current shortcomings of tax and customs regulations in Viet Nam in the annual dialogue between the Ministry of Finance and the European Chamber of Commerce in Viet Nam.

Deputy minister Do Hoang Anh Tuan said this event had great significance as comments and recommendations of businesses would help the ministry improve its policy-making process which would create a fair and more attractive business environment for foreign companies.

"Some of the recommendations made last year have been implemented such as tax deductions on life insurance premium for employees and personal incomes," Tuan said, noting the ministry expected to receive more comments from European businesses.

Representatives of the general departments of Taxation and Customs updated businesses on new regulations introduced from June 2011 until now.

With regard to tax regulations introduced this year, Tom McLelland, chairman of Eurocham Tax Working Group, raised concerns about some issues relating to tax deductions, particularly the cap on advertising and promotion expenses.

Law on Corporate Income Tax stipulates advertising and marketing costs may not exceed 10 per cent of the total allowed cost of one business, but McLelland said market research and advertising new products were an indispensable activity of every business and limiting such cost could constrain business activity.

He also discussed unclear regulations on hot areas such as transfer pricing, e-invoicing, tax incentives, profit remittance and value-added tax (VAT), as well as the different treatment applied to commercial versus non-commercial shipments.

Tuan admitted that although many advances had been made in tax and customs procedures and regulations, some of these were just provisional.

He said since the beginning of this year, the Government had issued many tax incentives to help companies overcome the economic crisis. He added that the National Assembly was expected to pass the Law on Personal Income Tax by the end of this year and the ministry would submit the new Customs Law and modified Law on Value Added Tax to the National Assembly next year.

Tuan said opinions of businesses during this process would be very important and the ministry would study business recommendations and make amendments to suit their practical operation.

Steel sales to be ‘modest' in Q4
 
Although construction historically picks up in the fourth quarter, steel sales are expected to see only a slight increase, according to the Viet Nam Steel Association (VSA).

"In the fourth quarter, we could see about 400,000 tonnes of sales each month, which is very modest compared to previous years," said Nguyen Tien Nghi, the VSA's vice chairman. "But we're not even sure if we can reach that figure."

Nghi said that tough economic conditions were the main reason behind the sluggish sales growth.

"Real estate projects are still not completely back on track, so sales will continue to be affected," he said.

But growth could pick up for two reasons.

Some investors were fast-tracking their construction schedules, and the government might loosen financial policies in the fourth quarter, Nghi said.

Last month, VSA members produced 375,000 tonnes of steel, with sales increasing modestly to 356,000 tonnes.

For the first nine months of the year, production was 3.36 million tonnes, while sales totalled 3.3 million tonnes, a drop of 10 per cent compared to the same period last year.

As of the last day of September, the volume of inventory for the industry totalled 328,000 tonnes.

Domestic sales have slumped because of the competitiveness of imported products, mostly from China.

While domestic production can meet demand, many companies still import steel from other countries because of low import tariffs.

In addition, import procedures are simple, leaving the domestic steel industry at a disadvantage and less competitive than companies from other countries.

As a result, the Ministry of Finance has drawn up a draft that proposes an increase of import tax on some steel products.

Under the draft, the import tax on cold-rolled stainless steel would be raised from 5 to 7 per cent.

This year, Viet Nam's total cold-rolled stainless steel production output would reach 300,000 tonnes, while demand would be lower than 250,000 tonnes, according to VSA.