Japanese localities seek cooperation with HCM City

A meeting to designate possible cooperation activities between Ho Chi Minh City and Japan was opened in the southern Vietnamese city on March 12.

Participants to the events included Chairman of the municipal People’s Committee Le Hoang Quan and Chairman of Japan’s Council of Local Authorities for International Relations (CLAIR) in Singapore Adachi Masahide.

Addressing the event, Masahide said numerous exchange activities between Japan and Vietnamese localities have yielded significant achievements, particularly in agriculture, infrastructure construction, tourism and trade.

In recent years, the city of Osaka has supported HCM City in sewage treatment and high-tech agriculture, Masahide said, adding that many Japanese enterprises have effectively invested in the city.

In return, Quan hoped the CLAIR will continue to act as a link between Japanese localities and HCM City to improve locality cooperation.

Quan added HCM City has collaborative ties with five Japanese localities, making Japan is one of the city’s leading partners.

So far, Japan has invested 3.5 billion USD in HCM City.

HCM City exports to Japan reached 2.7 billion USD and imported from the East Asian country commodities worth 1.7 billion USD in 2014

Founded in 1988, the CLAIR aims to support local governments in organising collaborative activities among provinces and to improve international relations among the 10 ASEAN member states and India.-

Experts point out shortcomings in protecting consumers’ rights

The absence of procedures allowing consumer protection organisations to act on behalf of their members is damaging the legitimate interests of Vietnamese customers, participants at a workshop have heard.

Experts provided their insight into this shortcoming at a meeting titled ‘Vietnamese consumers’ rights: Issues and Solutions’, which was held by the People’s Participation Working Group (PPWG), the Institute of Social, Economic and Environmental Research (iSEE), and the Vietnam Standards and Consumers Association (Vinastas) in Hanoi on March 12.

According to an online survey of 1,200 people published by iSEE, up to 46 percent of respondents said they had bought goods of low quality, 40 percent bought goods without a clear origin and over 30% bought expired or counterfeit goods.

Only a few people complained, however, as they felt discouraged by the time-consuming and often fruitless complaints process. Many admitted to feeling felt alone in the battle to protect their interests.

Le Quang Binh, head of the PPWG, said Vietnam had implemented a consumer protection law but had failed to enforce it sufficiently. He said the agency in charge must provide full information on consumers’ rights and interests and the mechanisms open to them for protection.

They also need to streamline procedures and allow consumers to stand together to protect their legitimate rights, he added.

Sharing Binh’s view, Pham Manh Hung, Vice President of Vinastas, advised consumers to stand together to gather more strength in the battle to protect their rights and interests.

Hung said his association annually receives around 1,000 complaints from consumers, but said the number only reflects a small fraction of disgruntled customers.

According to Pham Que Anh, Director of the Consumer Unity & Trust Society, the Government should allow consumer associations to act on behalf of their members in making complaints.

Compensation should not only go back into the State budget, as happens now, but should be returned to consumers via protection activities organised by their representative groups, Anh added.

Experts plot brighter future for Vietnamese enterprises

A workshop titled “Improving the Vietnamese business environment” was organised on March 12 in Hanoi in order for local enterprises to learn from international experience.

The event, which was co-hosted by the Central Institute for Economic Management (CIEM), the Ministry of Planning and Investment and the United States Agency of International Development (USAID), aimed to implement a key Government resolution on improving the business climate and national competitiveness in Vietnam.

The institute’s director, Nguyen Dinh Cung, told attendees about the Government’s strong commitment to realising its targets for Vietnamese businesses.

CIEM has consulted business associations to outline the challenges that Vietnam faces in improving its business climate, Cung said. He highlighted the institute’s action plans to attract investors to the Vietnamese market and to develop small-and medium-sized enterprises (SMEs), both of which are important components of its USAID-funded Governance for Inclusive Growth (GIG) project. He said that the scheme will create jobs and boost economic growth.

An expert from the World Bank also took to the stage, outlining the need for typical and specific indicators that can accurately measure improvements in the Vietnamese business climate and assess overall business performance.

Participants discussed 10 indicators to measure the performance of enterprises, including the number of employees, tax contributions, level of cross-border trade and successful implementation of contracts.

They also suggested the reduction of administrative processes, red tape and costs by improving cross-border trading, tariffs and power access for enterprises.

The workshop was organised as part of the GIG project, which aims to promote trade and investment, enhance the private sector, strengthen law enforcement, improve management of public finances, and foster wide participation in socio-economic development.

The Government’s latest business resolution, introduced in March last year, calls for the implementation of three strategic measures: improving institutions, developing infrastructure and raising the quality of human resources. Restructuring the economy and changing the growth model are also important long-term goals.

The Government has committed to reforming administrative procedures this year and has pledged to ensure transparency and increased accountability from state agencies. By the end of 2015 it hopes that Vietnam has achieved the average key performance indicators set by several members of the Association of Southeast Asian Nations.

Fatherland Front leader receives Samsung Vietnam directors

Nguyen Thien Nhan, President of the Vietnam Fatherland Front Central Committee, received outgoing Samsung Vietnam General Director Shim Won Hwan and his successor Han Myong-sup on March 11.

At the reception, Nhan highlighted Samsung’s significant contributions to Vietnam through its medium- and long-term investments and scientific research studies, particularly the recent research collaboration with three major universities in Hanoi.

He asked the company to consider providing additional living space for Vietnamese workers and said the front is willing to support Samsung’s operations in the country.

According to the incoming General Director Han Myong-sup, the Samsung Vietnam complex in northern Thai Nguyen province currently employs 42,000 labours.

In March 2015, it plans to construct nine additional dormitories to accommodate workers, he said.-

Japan’s printer manufacturer expands in Vietnam

Japan’s Kyocera Corp has planned an expansion worth 57.8 million USD in Vietnam this year in an effort to shift part of its high-cost Chinese operation to the country.

By March 2018, its factory in the northern city of Hai Phong is expected to produce 2 million units of multi-purpose printers each year, quadrupling the current level.

Construction on a new facility producing metal moulds and plastic components will begin no later than this August.

The workforce is expected to triple to 5,000 with over 200 employees working in research and development.

Kyocera currently produces over 2 million multi-purpose printers annually, mostly in China. Europe accounts for the largest market share, especially Russia and Turkey.

With its planned expansion in Vietnam, annual output is forecast to soar over 70 percent to 3.5-4 million units.

Kyocera’s unit in charge of multi-purpose printer production and trading - Kyocera Document Solution - recorded a 10 percent increase in revenue to 2.75 billion USD from April 2014 to March 2015, with 275 million USD in pre-tax income.

Can Tho to enhance aquaculture efficiency

The Mekong Delta city of Can Tho continually prioritises foreign investment in its environment in an effort to enhance its agricultural production efficiency, said Dao Anh Dung, Vice Chairman of the city People’s Committee, at a reception for a delegation of businesses from Nagasaki prefecture in Japan on March 11.

During the event, a representative from the Aquatic Product Association highlighted the financial and technical difficulties local farmers face in improving product quality, primarily due to environmental factors such as waste water and muddy sediment.

The prefecture, home to numerous aquatic product cultivation and processing firms, has in-depth experience in treating waste water and muddy sediment, said Takayuki Miyanishi, head of the delegation.

Japan is willing to help the regional farmers address these issues to improve the value and competitiveness of their products in the domestic and international market, he added.

Can Tho has zoned off 14,000 hectares, or 6.3 percent of its total aquaculture area, to raise “tra” fish, amounting to over 70 percent of its total aquatic product output.

The locality is leading the nation with an annual export of nearly 197,000 tonnes of “tra” fish.

However, it has been unable to penetrate strict markets like Japan and the Republic of Korea as a result of insufficient food safety standards.

Hanoi company stretches reach to Africa

The State-owned Hanoi Trade Corporation (Hapro) is focusing on expanding its export markets in Africa, particularly in Angola and Mozambique, according to a statement from an executive on March 11.

Hapro is shifting its attention to Africa as a potential market with limited supplies of the company’s goods. It is also working to explore markets in Cuba and Myanmar, said Chairman of the Board of Directors Nguyen Huu Thang.

He added that efforts will be undertaken to maintain its business activities in major markets like Japan, the US and the EU and enhance shipments to Eastern Europe and New Zealand.

Pepper, cashew nuts, rice, fine arts and handicrafts, and consumer goods are among key commodities the firm plans to expand in 2015, Thang said, noting that his company is updating its infrastructure and improving the operation of its manufacturing facilities to meet export demand.

As a major Vietnamese exporter, Hapro is now shipping goods to 70 countries. Its trade revenue has reached 2.59 billion USD over the last 10 years, including 1.67 billion USD from exports. The firm shipped 281 million USD worth of goods abroad last year.

The company also boasts two HAPRO shopping centres, three market centres, 40 supermarkets and HaproMart convenient stores, 44 Haprofood shops, and other specialised store systems across Vietnam.

High-tech agribusiness attracts Japanese investors

Japanese businessmen have seen vast potential and are seeking to build high-tech agriculture in Vietnam, Agricultural Attaché at the Japanese Embassy in Hanoi Atsuki Tomoyose said to the Investment Newspaper.

Japanese enterprises have their eyes on not only investment opportunities but also on exporting their machinery and products to Vietnam.

According to the diplomat, the interest stems from Vietnam’s favourable geological features and weather for growing crops in combination with an increasing domestic demand for advancing their traditional sector. Its geographical location would also facilitate connections between Japan, the Southeast Asian region and China.

At a recent meeting with top officials from the Ministry of Industry and Trade, the giant Bank of Tokyo-Mitsubishi UFJ said Japanese firms intend to assist Vietnam with agricultural methods and techniques to maximize its production value.

The bank recommended trans-sector cooperation and compiling a national food safety protocol. They also offered to bring their clients to Vietnam.

In October 2014, Fujitsu, a top IT service provider in Japan, signed a cooperation pact with the FPT Group. Under the pact, Fujitsu will provide and implement Akisai, a cloud computing service supporting agriculture management, in the country from 2015-16.

In May, two other Japanese firms, Always and Veggy, took a business trip to northern Vinh Phuc province, sharing their goal to supply fresh vegetables to Japanese restaurants nationwide with an estimated first-year export revenue of approximately 1 million USD.

The governments of Vietnam and Japan have reached an agreement on a comprehensive plan to develop high-tech agriculture in Vietnam to be implemented this year. The sides are also working together to devise a medium- and long-term agribusiness cooperation project.

Can Tho aims to diversify tourism services in 2015

The Mekong Delta City of Can Tho targets to expand services, improve facilities, and enhance service quality to boost tourism development in 2015.

It plans to accelerate the implementation of tourism-oriented projects including the construction of high-end hotels and restaurants in the Khuong and Cai Khe hillocks in Ninh Kieu district, especially the eco-tourist resort Con Au.

An additional six tourist agencies have been allowed to operate their branches in the city to serve international visitors, including Transmekong, Saigontourst, Viettravel, Fidi, TST and Vietcircle.

Additionally, Can Tho will also devise measures to preserve and upgrade local cultural and historic sites, such as the Bui Huu Nghia relic site, Binh Thuy ancient village, Vuon Man ( Plum Garden ) revolutionary base, and Long Quang pagoda to uphold and promote their traditional values.

The city’s Department of Culture, Sports and Tourism will boost community-based tourism services in Vam Sang, Muoi Cuong, Ms. Thom and Vu Binh sites through close coordination with local farmers.

It will foster promotion activities in the Mekong Delta, the northern and central regions, and An Giang and Kien Giang provinces to establish a tourism triangle and tap the potential of their natural conditions.

During the first two months this year, Can Tho has welcomed nearly 210,000 tourists including 41,000 foreigners, equivalent to 15.9 percent of its target.

In 2015, it expects to draw 1.37 million tourists, including 258,000 international visitors, generating 1.25 trillion VND (58.5 billion USD) in revenues, a 6.7 percent increase from last year.

Work begins on construction of largest cold storage in Mekong Delta

Work commenced on the construction of a 50,000-square-metre cold storage area at the Song Hau Industrial Park in the Mekong Delta province of Hau Giang on March 9.

As the largest cold storage building for aquatic products in the region, the new facility will be a part of the Cuu Long Port and Logistics project invested by Minh Phu Group and the Gemadept Company.

The project is funded through an investment of 300 billion VND (14.1 million USD).

The storage facility has been designed to meet the strictest standards of frozen aquatic product preservation and use foreign advanced technologies.

The Cuu Long Port and Logistics project, covering 30 hectares, will cost a total of 1 trillion VND (47 million USD).

The Mekong Delta is a major aquaculture region with 800,000 hectares of water surface dedicated to the purpose, not to mention sea catches.

The aquaculture products industry targets an output of 3.7 million tonnes to meet the demand of 198 local processing plants in the region this year.-

Packaging expo Propak Vietnam to increase international exposure

This year's Propak Vietnam from March 31 to April 2 in HCM City will feature bigger international participation with eight international group pavilions and 230 exhibitors from 24 countries and territories.

This year's event, the 10th edition, will thus see over 20 per cent growth in size, with 82 per cent of exhibitors coming from overseas.

Propak Vietnam 2015 will showcase many latest technologies and solutions from around the globe to serve the expanding Vietnamese food, drink and pharmaceutical processing and packaging industry.

The exhibition will focus on four main parts – equipment and machinery, packaging materials and accessories, services, quality, and training.

BT Tee, deputy chief of Singapore Exhibition Services' Viet Nam representative office – the event organiser together with the VCCI Exhibition Services Co Ltd – said international manufacturers and exporters are making Vietnam a processing hub, which in turn has attracted many international exhibitors seeking to support both new and established companies in this industry.

Notably, the exhibition has attracted the seven biggest technology exporting countries and territories in the field of packaging equipment – Germany, Korea, Italy, Japan, Taiwan, Thailand, and Singapore.

Food safety, green packaging and eco-manufacturing, some burning issues in Viet Nam currently, will be the main focus of seminars at Propak Viet Nam 2015.

Propak Vietnam 2015 will be held at the Saigon Exhibition and Convention Centre by the representative office in Viet Nam of Singapore Exhibition Services Pte. Ltd. with VCCI Exhibition Services Co Ltd.

Banks to offer online tax payment service

Fifteen commercial banks have signed a cooperative agreement with the General Department of Taxation under the Ministry of Finance to offer online tax payment services.

These include the An Binh Commercial Joint Stock Bank (AB Bank), the Maritime Commercial Joint Stock Bank of Viet Nam (Maritime Bank) and the Saigon Commercial Bank (SCB).

According to the agreement, these banks will build and implement a system for exchanging information and managing the database on online tax payments. The service will also use digital signatures to verify the validity of data.

Speaking at the signing ceremony on March 10, the department's Director General Bui Van Nam said the service would be convenient because tax payers would be able to make online payments at anytime and anywhere. He added that they could also track and update the status of their tax payments, as well as use value added services offered by the banks.

Nam pointed out that this year, 90 per cent of the enterprises would pay taxes online and would continue to sign cooperative agreements with all banks until the end of 2016.

Le Thi Bang Tam, chairwoman of the HD Bank, said the signing marked a big step in cooperation between tax authorities and commercial banks in the state budget collection. It would also help tax authorities update information on tax payers in a timely fashion, and reduce mistakes that had led to the process of tax administration reform, she added.

Earlier in 2014, the department had signed a cooperative agreement with five local commercial banks to carry out the service, including Vietcombank, VietinBank and Agribank.

The service was implemented from February 2014, and is now available in 18 cities and provinces. About 24,000 companies have registered to use it. The total amount collected via the online tax payment portal was more than VND14 trillion (over US$666.6 million) at the end of February 2015.

HCM City banks offer cheap loans to meet stiff lending target

Banks in HCM City are vying with one another to offer preferential loans in an effort to achieve the year's credit growth target of 13-15 per cent.

Analysts say that many banks consider the target set by the State Bank of Viet Nam as rather stiff and so have begun to make efforts right at the start of the year.

Nam A Bank, for instance, recently unveiled a VND2 trillion (US$94.14 million) credit package at 6 per cent interest for corporates and 6.4 per cent for individual borrowers.

In January HDBank announced loans at a mere 3.8 per cent interest for the first six months for those borrowing between VND500 million ($23,534) and VND2 billion ($94,135).

Viet Capital Bank recently earmarked VND1 trillion at a rate of 6.5 per cent for start-ups involved in production and distribution.

It has unveiled a VND2 trillion package for personal loans at 7.5 per cent and simple lending procedures.

At ABBank, individual customers wanting to get long- and medium-term loans can get them at 8 per cent for the first 12 months under a VND1 trillion package.

Vu Thu Hang, an ABBank executive, said the bank expected long- and medium-term loans to enable individual customers to achieve their business plans and personal consumption needs, thus encouraging production and trading activities.

Banks have also simplified procedures to ensure quick disbursement of credit.

A spokesperson for a bank situated in HCM City's Tan Binh District, who asked not to be named, said lowering lending rates did hit banks'profits but providing services to borrowers would boost their earnings.

A central bank official also said that with the fierce competition among banks for good customers, those who want to win must have quality services first followed by preferential interest rates.

Phan Dinh Tue, deputy general director of Sacombank, agreed, saying that in addition to having reasonable interest rates banks must have policies and mechanisms and utility products to ensure best care for their customers.

The banks' efforts seem to be paying off, with credit growth in HCM City significantly improving from the negative situation in the same period in previous years.

Deputy director of the SBV's office in the city, Nguyen Hoang Minh, told Tuoi Tre newspaper that in the first two months of the year the city banking sector's credit grew by 1.1 per cent, much higher than in recent years.

"Banks are making efforts to cut costs to be able to further slash interest rates on long- and medium-term loans by 1-1.5 per cent as required by the SBV governor.

"At present some banks are offering long- and medium-term loans at around 9 per cent."

RoK supports Dong Thap’s flower plantation for export

The Republic of Korea’s Rural Community & Agriculture Corporation (KRC) will provide the Mekong delta province of Dong Thap with flower seeds and high-tech transfer to help it produce fresh flowers for export.

This is a main component of the public-private partnership (PPP) cooperation project between Dong Thap and KRC, aiming to help the province boost fresh flower exports.

After a fact-finding tour of the province, on March 12 a KRC study team concluded that that Sa Dec City has advantages in flower export and this is a potential cooperative field between the two countries in the future.

The KRC team also spoke highly of Sa Dec’s project to combine flower development with tourism and committed to call on Korean businesses to invest in the field.

Vietnam boosts trade, investment ties with Egypt

Vietnamese Minister of Agriculture and Rural Development Cao Duc Phat is visiting Egypt to attend the country’s Economic Development Conference from March 13-15 with the aim to enhance bilateral trade and investment ties.

Vietnam’s participation in the conference reflects the two nations’ time-honoured friendship and solidarity, said Phat, adding that the event presents a good opportunity for Vietnamese businesses to seek cooperation opportunities and contribute to elevating trade value to US$500 million this year.

The Egyptian Economic Development Conference has a great political and economic significance to Egypt, the most populous country in the Middle East and North Africa. The Egyptian Government plans to introduce and call for investments in 30 large-scale projects worth roughly US$20 billion, mainly in oil & gas, electricity, mining, transport & logistics, tourism and education.

Bilateral ties between Vietnam and Egypt have progressively grown, fortified by mutual support provided at international forums. Egypt also recognised Vietnam’s full market economy mechanism in November 2013.

Trade reached US$370 million in 2014, up 85% from the previous year. Vietnam mainly sells agricultural and seafood products and automobile spare parts to Egypt.

Vietnam’s current participation in eight free trade agreements and negotiations on six others coupled with Egypt’s participation in the Arab Free Trade Area will create favourable conditions for enterprises in both nations to expand their exports to other markets.

PM approves new economic corridor targets

The Prime Minister has just approved targets for a new economic corridor through 2020 in a bid to boost socio-economic development in the included provinces and the broader vicinity.

The corridor, connecting northern Lang Son province, Hanoi, Ho Chi Minh City and the Moc Bai Border Gate Economic Zone in southern Tay Ninh province, will form the framework for the national infrastructure system in collaboration with other corridors and economic systems.

By 2020, the corridor is expected to earn some US$200-220 billion, making up of 70% of the total national GDP, and contain 80 percent of the national urban population.

The route also targets welcoming between 49-50 million tourists, including some 9-9.5 international arrivals, generating US$15-16 billion.

Other approved objectives include total trade revenue accounting for 85% of the total North-South corridor, or one third of the national trade value.

Priorities will be given to developing a comprehensive infrastructure system with a focus on transport, trade and tourism, and economic zones; training high-quality human resources in conjunction with developing and applying science and technologies; improving administrative procedures; and enhancing the business climate.

 Local handicrafts eye Northern European markets

A delegation of 12 Vietnamese handicraft enterprises has paid a working visit to Norway to promote their products and seek partnerships and export opportunities.

Headed by Deputy Director of Hanoi’s Department of Industry and Trade Dao Thu Vinh, the delegation met with representatives from the Enterprise Federation of Norway (VIRKE), Oslo Chamber of Commerce and a number of local businesses, including Senze of Joy, Northern Gifts AS and Aurora verksted AS in Oslo.

A handicraft exhibition was held during the March 9-10 visit, featuring various new designs created through collaborative efforts between Vietnam and several Northern European designers.

At the exhibition’s opening ceremony, Vietnamese Ambassador to Norway Le Thi Tuyet Mai and VIRKE Director Thomas Angell spoke highly of the collaboration between Vietnamese and Norwegian businesses in trade promotion activities.

Hanoi is home to over 1,300 handicraft villages, equivalent to 65 percent of the country’s total villages.

The capital city has been working with the Vietnam Handicraft Exporters Association (VIETCRAFT) to draft a business plan focused on developing handicraft designs in coordination with experts and design institutes in Northern Europe, the world’s leading centre of creative industries.

VIETCRAFT Vice President Le Ba Ngoc said handicrafts have become key Vietnamese exports in recent years. The country shipped abroad US$1.7 billion worth of handicrafts last year, providing employment to 1.5 million rural workers.

Economic concerns on fuel and power price hikes

Experts are worried about higher consumer prices and the jump in production costs for companies after the government's higher electricity and fuel prices bite.

Petrol prices went up on March 11 by VND1,600 a litre while electricity prices are set to rise too. Wages remain largely unchanged, which means less money to spend on consumer goods, setting up conditions for a drop in Vietnam's economic growth.

"Consumers' rights haven't been considered when the both fuel and electricity prices are increased almost at the same time like this," said a spokesman for the Consumer Protection Association. "Not only do consumers have to pay higher electricity bills and more for traveling, they must tighten spending."

The hike in electricity means prices will have to rise, say many companies.

Representative of Viet Steel Company estimated its electricity bill in 2015 will be VND795bn, an increase of VND55bn compared to last year. One tonne of steel normally costs VND143,000 to produce, but after the price hike, it will cost VND160,000. Other firms in cement and plastic manufacturing industries also worry because electricity accounts for 5 percent of the production cost.

In 2015, Vietnam is committed to multiple international trade pacts, in particular as a member of the Association of Southeast Asian Nations (Asean). It must cut taxes or provide tariff exemptions for thousands of goods under the Asean Trade in Goods Agreement (ATIGA). Domestic firms will have to brace for tough import competition, harder now as they face higher prices for key inputs.

On March 11, the Vietnam National Petroleum Group (Petrolimex), the country’s largest fuel wholesaler, raised the retail price of the fuel blends RON95 and RON92 from VND1,610 a litre to VND17,880 and VND17,280 respectively. The price of the ethanol-mix E5 price increased by VND1,600 per litre to VND16,950. Diesel and kerosene prices rose by VND710 to 15,880 VND and VND16,320 respectively. Mazut costs VND12,760 a litre, up by VND910.

A few days later, the state-run Vietnam Electricity (EVN) announced a hike by 7.5%, pushing the average price of electricity in Vietnam to VND1,622 a kilowatt hour from March 16.

EVN said it is incurring a loss of VND8 trillion due to exchange rate differences and would suffer a loss of VND12 trillion this year if the price remained unchanged.

According to the government, the price hike in both fuel and electricity will help Vietnam meet its GDP target goal of 6.2% growth. Adversely, it will increase the consumer price index (CPI), which measures inflation, by about 0.46%.

The government has promised to keep the CPI index lower than 5%.

Phone sales hit 28.7 million units

A recent survey by global data firm IDC has revealed that a total of 28.7 million cell phones were sold in Vietnam last year, up 13% from the previous year.

Nearly 41% of the handsets were smartphones which achieved the highest growth rate – 57% year on year, news website Saigon Times Online reported on March 11, citing a survey.

Vo Le Tam Thanh, an analyst with IDC Vietnam, explained the soar in smartphone sales as a result of recent price cuts.

 He said the whole market’s growth was mainly boosted by the segment of low-end smartphones, adding that six of 10 smartphones sold in Vietnam were priced less than US$150.

The sales of smartphones are expected to surpass that of feature phones this year, according to the news report.

IDC’s survey also showed that Samsung was still the largest seller in Vietnam, even though its market share significantly shrank from 54% in 2012 to 26% last year.

Microsoft Mobile, formerly known as Nokia, continued to grow with its share increasing to 24% from 16% in 2013.

Danial Pang, senior research manager of IDC ASEAN, was quoted as saying that most of Microsoft Mobile’s products targeted the middle segment, while Apple and Samsung dominated the luxury segment.

According to IDC, even though the sales of phablets in Vietnam were still lower than those of other products, local interest in phones with big screens clearly increased.

The uptrend was attributed to the fact that the devices became cheaper, while allowing users to browse the Internet and play games better.

 Electricity prices to increase by 7.5% as of March 16

The Ministry of Industry and Trade has issued a new frame of the prices of electricity for family activities to be applied since March 16 in conforming to the recent approval of Prime Minister for the Electricity of Vietnam (EVN) to increase it by 7.5% this year.

In Vietnam, electricity for family life and production is sold in different prices.

According to the new price frame for family, each kWh of electricity is priced at VND1,484 for the first 50 kWh a month. It goes up to VND1,533 a kWh from the 51st to 100th kWh a month.

With the consumption of over 400kWh a month by a family, each kWh is priced at VND2,587.

EVN technicians are installing an electricity meter at a family.

A US dollar is equivalent to VND21,335.

The prices of electricity for production are from VND869 - 983 each kWh in normal time and VND2,459 - 2,735 a kWh in the peak time.

Last week, Prime Minister Nguyen Tan Dung approved the suggestion of EVN to increase the price of electricity in Vietnam by 7.5%, averagely at VND1,622/kWh.

EVN said it will incur a loss of VND12 trillion (US$577 million) in 2015 if the electricity prices remain unchanged.

It is planned to help EVN cut loss in the past years, ensure the Gross Domestic Product growth at 6.2% this year, and control the inflation rate at 5%.

Government pushes for reforms to improve business environment

The Prime Minister will focus on improving the business environment and strengthening the economy's ability to compete in 2015 and 2016.

Key areas of a Government resolution released on March 12 include pushing for reforms to reduce time-consuming and wasteful administrative procedures, enhancing governmental offices' transparency and accountability, and adopting regulations that are in accordance with international rules.

Another high priority is raising the country's business environment indicator to higher than the ASEAN average.

In addition, the Government will also strive to reduce its average tax-filing time to 121.5 hours per year (from 872 hours in 2013 and 537 hours in 2014) and raise the number of businesses that complete online tax applications to 95%.

Advancements in science and technology would help with the restructuring of the agriculture sector, according to the resolution. The sector must also enhance product quality and competitiveness, while ensuring food security and sustainable development.

The Government also made other superior value-adding industries like tourism, finance and telecommunications priorities in the national development programme.

More State-own enterprises would be restructured. The Government aims to adapt them according to the principles of the market economy. But preferential policies would also be created to stimulate private growth.

Special policies and mechanisms would also be established to level the playing field between large State-owned enterprises and small-to-medium-sized enterprises. Firms would also be encouraged to pour more capital into research and development.

Ministries, sectors, cities and provinces were ordered to take steps to improve their investment and business environments, and resolve any impediments in the implementation of administrative procedures.

The new resolution also recommended the privatisation of a number of public services. It advocated for giving key sectors such as education, health care and technology more autonomy.

The Government was to run a pilot programme to test a number of projects, using the public-social partnership approach.

The United States Agency for International Development (USAID) in collaboration with the Central Institute for Economic Management (CIEM) on March 12 co-hosted a workshop in Hanoi aimed at improving Vietnam’s business climate index (BCI).

The event reviewed the status of implementing government Resolution No19 issued one year ago to improve the business environment in Vietnam and enhance the nation’s competitiveness.

Participants at the workshop focused their discussions on 10 key indicators/fields in the life cycle of a business and everything from formation to dissolution, along with tax, cross-border trade, and electricity access issues.

They also shed light on issues related to employment, asset registration, construction licenses, credit, contract implementation and bankruptcy.

Vietnam, Hungary to strengthen business ties

A Vietnam-Hungary business forum took place in Hanoi on March 12 with nearly 120 enterprises from the two countries in attendance.

The meeting was designed to form affiliations between companies in various sectors including food processing, mechanics, energy, IT services and communications.

Addressing the forum, Industry and Trade Deputy Minister Ho Thi Kim Thoa pointed to the steady bilateral trade growth and emphasized that greater efforts are required for Vietnamese and Hungarian businesses to tap their trade potential .

Gabor Kun, Deputy CEO of Hungary’s National Trading House, said his agency set up a representative office in Vietnam to facilitate the international operations of Hungarian small- and medium-sized firms.

Vietnam and Hungary recently celebrated the 65th anniversary of the establishment of diplomatic relations (Feb 3, 1950).

Thailand, Vietnam to boost rubber cooperation

Vietnam and Thailand are holding fresh talks to bolster rubber cooperation.

Minister of Agriculture and Rural Development Cao Duc Phat met on March 12 in Hanoi with his Thai counterpart Minister of Agriculture and Cooperatives Petipong Pungbun Na Ayudhya to reach the agreement.

For his part, Ayudhya said he hoped that Vietnam would coordinate with Thailand and other ASEAN countries to found a network of rubber producers to avoid overdependence on foreign countries outside of ASEAN.

The rubber production of Southeast Asian countries in 2014 accounted for roughly 70% of the world’s total rubber production.

PM launches nationwide PPP initiative

Public Private Partnerships are at the heart of the government's attempts to attract private infrastructure investment for public projects such as hospitals, universities, highways, bridges, airports and municipal buildings.

Any collaboration between public bodies such as the State, government ministries, local municipalities and private companies tends to be referred to a public-private partnership (PPP).

The Prime Minister is focused on expanding the range of public private partnerships because he believes it is the best way to secure improvements in public services that Vietnam so desperately needs.

He wants to develop a comprehensive nationwide PPP programme because Vietnam's rapid economic growth has outpaced its infrastructure, creating a major constraint to continued export-led growth and investment in the future.

Advocates of PPP argue that because sufficient public money is not available, many infrastructure projects would not be constructed at all if it were not for private investors providing the funds to finance them.

They claim that the PPP would also lead to a dramatic improvement in the quality of public services and point to the numerous successes other countries around the globe have had with it.

Critics argue that the projects often end up costing substantially more with the PPP and that private companies often cut corners to maximize profits to the detriment of the public’s best interest.

They claim there is some evidence that a few PPP projects around the globe and in Vietnam have not been up to standard and that in particular the wages and benefits they pay their employees are below what the private sector pays.

According to Ha Cuong from MCG Consulting Group LLC there are some areas where PPPs may ultimately prove unsuitable and adds that the model has only had limited success in Vietnam over the past few years due to weak competitiveness.

He added that it is important to keep the PPP in perspective. The government has not written off the public sector and the majority of projects would be undertaken with oversight exercised by the government protecting the public’s best interest.

The recent decision by the PM demonstrates the government’s commitment to a nationwide PPP initiative and it could be a game changer leading up to a massive increase in private involvement in public services in the years ahead.

The key to future success of the PPP is dependent upon completing the legislative framework for the model, which should be thorough and contain a wide range of beneficial incentives to attract private firms’ participation.

In addition, there should be timely guidance emanating from the PPP Office under the Ministry of Planning and Investment (MPI), which has been established as a one-stop-shop division in charge of national coordination of PPP projects.

Other activities including study tours to other nations that have successfully implemented PPP programmes, workshops with key stakeholders to build their consensus on PPP related issues should be undertaken.

Additionally, obtaining technical assistance from cooperating with leading quasigovernmental and governmental organisations from other nations to help build capacity in central government, provincial and city agencies that will implement PPP projects should be high on the agenda of things to accomplish.

This would be of great assistance in minimizing risk for the private investors and help to increase their participation in the national PPP programme, he said.

Other forms of private investment such as the build-operation-transfer (BOT) or build-transfer (BT) have had their shortcomings as well and on balance the PPP is a much better model to attract private investment.

Despite Vietnam's great potential for PPP development, significant challenges lie ahead. International firms are eying opportunities for PPP projects in Vietnam, but they won’t participate in these projects until a strong, comprehensive and transparent PPP programme is in place.

Mong Duong coal-fired power plant enters operation

AES-VCM Mong Duong Power Company Limited (AES Mong Duong) on March 12 announced that the 621 MW Unit 1 of Mong Duong II, the first and largest BOT coal-fired power project in Vietnam, has entered commercial operations ahead of schedule.

Mong Duong II, with two units and total gross capacity of 1,242 MW has been in construction in Mong Duong Ward, Cam Pha City, Quang Ninh Province since December 2010. The total investment for the project is approximately US$US 2.1 billion.

The plant has worked over 42.5million man-hours and continues to progress very well with an average of 2,500 people still supporting the remaining portions of the project every day.

After completion of construction and commissioning activities of the entire power facility in the second half of 2015, Mong Duong II is forecasted to produce more than7.6 billion kWh of electricity annually. The project will supply electricity to Vietnam’s state-owned company, EVN, under the terms of a 25-year power purchase agreement.

CEO and Managing Director of AES Mong Duong, David Stone, said, “We are very excited with this remarkable achievement of Unit 1 entering commercial operations ahead of schedule.  This is not only the success of AES Mong Duong, but also a clear demonstration of close cooperation through the years between AES Mong Duong and the Vietnamese Government and agencies.”

AES Mong Duong, Owner of Mong Duong II, is a limited liability company formed by the affiliates of The AES Corporation (USA), Posco Energy (Korea) and China Investment Corporation (China), with The AES Corporation as the largest shareholder.

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