Cargill to increase animal feed capacity

Cargill Feed and Nutrition, a subsidiary of America Corporation Cargill, has invested US$20 million in the expansion of an animal plant in the central province of Binh Dinh.

The annual capacity of the plant will increase from 60,000 tonnes to 240,000 tonnes.

Jorge Becerra, general manager of Cargill Feed and Nutrition, stated that the expansion of the plant has increased the total investment capital of Cargill Corporation in Viet Nam's livestock and aquaculture to more than US$110 million in the last 10 years.

"The expansion will raise the capacity of Cargill's plant system to 1.4 million tonnes per year and create 50 jobs for business and customer service positions in Binh Dinh", he claimed.

The expanded plant is one of Cargill's eight feed production facilities in Viet Nam and will extend the company's ability to meet the growing demand for animal feed.

Hue to call for foreign investment

The central province has called for foreign investment for four projects with a total capital of US$1.2 billion, a source from the province reported.

The four projects include construction of a 102 km Express Way with six lanes that link Cam Lo district in Quang Tri Province and La Son in Thua Thien Hue; a 40-hectare solid waste plant in Huong Van commune of Huong Tra town; a 35-hectare waste water treatment system at Chan May-Lang Co Economic Zone's Industrial park and duty-free zone; and a technician training college in the economic zone.

The province has attracted 23 foreign direct investment projects with a total capital of $2.3 billion.

Ministry acts for clarity in utility pricing

Consumers will have transparent information on how electricity, oil and gas prices are calculated when Ministry of Trade and Industry directive 11/CT-BCT goes into effect, said Minister Vu Huy Hoang on Sunday.

"In the past, the factors used for calculating electricity price were not transparent. The directive addresses this issue," he said.

The directive asks Electricity of Viet Nam (EVN) and Viet Nam National Petroleum Group (Petrolimex) to publish electricity and oil price calculation details as well as financial reports, business reports and production costs.

"This will allow consumers to decide how to use electricity, oil and gas suitably and economically," Hoang said. "I'm sure that with such a transparent mechanism, people will be able to supervise the operations of electricity, oil and gas providers, as well as State management agencies."

The Minister also confirmed that the electricity sector was operating "really well" at the moment with the contingency rate at 20 per cent.

"There might be difficulties from time to time if major incidents happen, but in general the supply of electricity this summer will be sufficient," Hoang said.

VN organises cashew-themed ‘rendezvous'

The Vietnam Cashew Association (Vinacas) will organise an international conference on the development of the cashew industry in Ba Ria - Vung Tau Province from May 15 to 17.

Some 200 organisations from all over the country are expected to attend along with researchers and buyers from many countries.

Besides speeches and dialogues at an open forum, Vinacas will encourage and enable partners, including buyers and sellers, to work "intimately" to find business opportunities and increase business volumes.

"Private conversation" is an initiative by Vinacas to enable business negotiations and boost volumes for its members and foreign partners.

Last year its members exported a total of 252,561 tonnes of cashew kernel for US$1.57 billion, up 26 per cent in volume year-on-year and 19.58 per cent in value.

The association estimates that in 2014 exports will be around 180,000 tonnes of kernel, earning approximately $1.5 billion.

In the first quarter of this year, 51,000 tonnes were shipped for $319 million, a 19.11 per cent rise in volume and 21.6 per cent increase in value.

A Vinacas official said the conference offered a tremendous opportunity for producers and exporters to meet face-to-face, the best way to do cashew business, and so his association wanted to call it "Golden Cashew Rendezvous 2014".

Importers of Vietnamese cashew usually buy through brokers, and by holding the conference Vinacas is trying to get customers to come and buy directly from cashew businesses.

Bank assets value surges in March

The health of credit institutions improved significantly in March, with the value of their assets registering a sharp increase over February to more than VND123.4 trillion (US$5.8 billion).

The 2.17 per cent increase is a marked improvement after a negative growth in February, according to the latest report from the State Bank of Viet Nam.

The report says that total assets of State-owned commercial banks surged to over VND70 trillion ($3.18 billion), and those of joint stock commercial banks rose to VND55.8 trillion ($2.536 billion).

The March figures have pushed up the total asset value of the entire banking system in the first quarter by 0.91 per cent over December last year to more than VND5,800 trillion ($263.636 billion), the central bank's data shows.

The total assets of State-owned commercial banks, joint venture banks and foreign banks increased by 0.83 per cent and 4.45 per cent, to more than VND2,520 trillion ($114.545 billion) and VND736.29 trillion ($33.467 billion), respectively, while those of joint stock commercial banks were more than VND2,460 trillion ($111.818 billion), down 0.06 per cent, the report added.

Total assets of finance companies and financial leasing companies, and the nation's sole co-operative bank in Q1 also reached VND66 trillion ($3 billion) and VND18.43 trillion ($837.72 million), up 1.13 per cent and 7.26 per cent. By the end of the first quarter, the equity capital of the banking system was nearly VND470 trillion ($21.363 billion), up 0.64 per cent against December last year.

However, the equity capital of State-owned commercial banks and joint stock commercial banks declined.

The central bank also reported that the returns on assets (ROA) ratio of the system last year was 0.5 per cent, while returns on equity (ROE) was 5.56 per cent, much lower than 0.79 per cent and 10.34 per cent in 2012 respectively.

The State-owned commercial banks, joint stock commercial banks and the cooperative bank led the system in terms of ROA ranging between 0.65 per cent and 0.71 per cent while the State-owned commercial banks topped the ROE ranking with 8.1 per cent.

‘Privileged' SMEs suffer credit freeze

Bank loans for small- and medium-sized enterprises (SMEs) came to a standstill in the first four months of 2014 and experts remain divided over the possibility of credit guarantees improving the situation.

The State Bank of Viet Nam's Credit Department has reported a two per cent decrease in credit for SMEs by the end of February. The situation had not improved by the end of April.

SMEs are among the privileged groups that are allowed to get loans with an annual interest rate 8 per cent. The other four priority sectors are agriculture, export, support industries, and hi-tech firms. Other sectors typically pay 9–10.5 per cent interest per year for short-term loans and 11–12.5 per cent for mid- and long-term loans.

However, about 35 per cent of all enterprises–most of them SMEs– are unable to access bank loans, according to BIDV Chairman Tran Bac Ha. He attributes this to: very strict lending conditions imposed by banks to prevent bad debt; enterprises' fear of high borrowing costs; low business efficiency; and low financial capacity.

SMEs account for 97 per cent of the total enterprises in the country, and 21.4 per cent outstanding loans. Around 70 per cent of SME loans are short term.

Central Bank Governor Nguyen Van Binh has agreed with economists that the difficulties faced by SMEs in accessing loans will have negative impacts on credit institutions in Viet Nam.

Binh suggests that credit guarantee funds that have been set up to assist businesses facing bankruptcy should work to thaw the credit freeze.

However, former central bank governor and current Chairman of the SME Association, Cao Sy Kiem , says credit guarantee funds only accept enterprises without bad dents or those who have assets to pledge as collateral. The requirements are as strict as banks, so the status-quo remains, he says.

Economists say that the original purpose of credit guarantee funds was to facilitate lending to enterprises without collateral. Therefore, the only lending criteria for SMEs should be their ability to present a sound business plan.

Textiles, footwear industries enjoy big surge in exports

Two key export industries - textile and garments as well as leather and footwear - have posted significant gains in the first four months of the year, according to the Ministry of Industry and Trade (MoIT).

The ministry said textile and garment firms had enjoyed a year-on-year increase of 20 per cent in export value to US$5.9 billion.

Le Tien Truong, deputy general director of Viet Nam Textile and Garment Group (Vinatex) said many enterprises had export orders until the third quarter and a few had contracts until the end of the year.

The orders are mainly from traditional marketslike the European Union, South Korea, Japan, and the United States, he said.

Truong also said that the success had prompted the Viet Nam Textile and Apparel Association and the HCM City Association of Textiles, Garments, Embroidery and Knitting to hold an international exhibition on machinery in HCM City this year.

Deputy Minister of Industry and Trade, Le Duong Quang, said the textile and garment industry was enjoying advantages from the expected signing of agreements like the Tran-Pacific Partnership.

The trade ministry reports that footwear exports reached $730 million in April alone, bringing total export turnover for the first four months to nearly $2.9 billion, up 21.9 per cent year-on-year.

The export of bags, suitcases, umbrellas and hats increased to $821 million in the reviewed period, up 48 per cent against the corresponding period in 2013.

While earnings from footwear exports to traditional markets - the US, Japan, Belgium, Germany and France - increased in the January-April period, the industry enjoyed a major boost via smaller nations like Chile (up 80.85 per cent), Israel (up 120.41 per cent), Greece (up 78.2 per cent) and Poland (up 161.7 per cent).

Industry insiders say the export boom was fuelled by a consumption recovery in major import markets, especially the EU.

The Viet Nam Leather and Footwear Association says the footwear industry is benefiting from several factors including a competitive edge, the introduction of Generalised System of Preferences and the forthcoming signing of the TPP agreement.

The association said Viet Nam's footwear and handbags were particularly competitive in the US, Japan and other parties to the TPP agreement.

Big push planned for VN goods

More than 80 per cent of Vietnamese consumers will be using indigenous goods by 2020.

Prime Minister Nguyen Tan Dung has signed Decision No 634/QD-TTg dated April 29, 2014, to approve the project for domestic market development, which is linked to the campaign "Vietnamese people use Vietnamese goods" in the period of 2014-20.

Le Viet Nga, Deputy Head of the Ministry of Industry and Trade's Domestic Market Department said that the project was aimed to help Vietnamese goods dominate the local market, contributing to the development of domestic producers.

Nga said that the project, with a total investment of VND228.9 billion (US$10.9 million), targets increasing awareness of the campaign among 90 per cent of Vietnamese people.

All cities and provinces would build communication channels with a "Proud of Vietnamese goods" slogan, he added.

To meet the targets the project devised four solutions including changing the awareness and behaviour of the community toward Vietnamese goods, giving support to the country's distribution system and improving competitiveness of businesses, collectives and households in distribution. It also mentioned enhancing market investigation and protection of consumer rights.

Statistics from the central steering committee on the campaign showed that up to 71 per cent of consumers have placed their trust in Vietnamese goods, especially in relation to garments, textiles and footwear.

In several supermarkets, domestically produced goods accounted for 80-90 per cent of the items on display.

The ministry said market share of local enterprises has been showing an upward trend despite the economic slowdown and decreasing purchasing power.

Several groups and corporations have expanded distribution channels and improved product quality to meet with consumer demand, it added.

There were a large number of domestic products which had a competitive edge over foreign ones.

Vietnamese businesses have especially concentrated on expanding the rural market which makes up 70 per cent of the country's population. For example, Viet Nam National Textile and Garment Group (Vinatex) organised 60 mobilising booths to industrial parks and rural and remote areas.

The Viet Nam Paper Corporation (VPC) signed agreements with 41 provincial Industry and Trade departments to bring their products to rural and mountainous areas in the North.

Tile makers increase retail prices

The Viet Nam Building Ceramic Association (VIBCA) held an emergency meeting with 100 ceramic tile and sanitary ware manufacturers in order to reach consensus on recent retail price hikes following an increase in transport costs.

VIBCA chairman Dinh Quang Huy attributed the increase to the fact that vehicles were now being inspected more closely to ensure road safety, which raised transport costs by 15-20 per cent, reports Dau Tu newspaper.

All sales agents and outlets nationwide adjusted prices starting April 20. These adjustments varied depending on the response from the market as well as their individual capacity.

Truong Ngoc Minh, Deputy Director of Tien Son Granite JSC, said the sharp increase forced manufacturers to raise prices based on market share and consumption volume.

While raising prices, producers were determined not to make the market volatile, said Huy.

Cement and steel makers, who are similarly affected by increased transport costs, are also considering raising prices. A representative of Nghi Son Cement Company said his transportation partner had doubled fees from VND300,000 to VND600,000 per tonne.

Viet Nam Cement Industry Corporation (Vicem) plans to discuss raising retail prices and restructuring the distribution network with its member companies this month. In addition, Vicem will examine the feasibility of using other means of transport such as waterways and railways to lower transportation costs, said Nguyen Thanh Tung, director of the Vicem office.

In Ha Noi, most cement, steel and ceramics tile distributors have increased retail prices by 5 to 10 per cent.

Tran Thanh Dat, director of Thanh Dat Company, said his company received a notice that prices had been raised from a manufacturer last week.

New TPP round begins in Vietnam

Negotiators of the Trans-Pacific Partnership (TPP) agreement began a new round of talks in HCM City on May 12, aiming to reach a deal ahead of a ministerial meeting to be held in Singapore on May 19-20.

During the four-day gathering, chief negotiators will address pending issues such as import tariffs on farm produce, intellectual property rights, and State-owned business restructuring.

The trade pact is being negotiated by 12 countries, namely Australia, Brunei, Chile, Canada, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US and Vietnam.

At the February 2014 round, TPP member states failed to reach an agreement due to US-Japan differences over Tokyo’s policy of protecting its market for beef, rice, and other agricultural products.

However, experts expect new progress will be made in HCM City this time, after both the US and Japan settled their differences in April.

The Vietnamese Ministry of Industry and Trade says Vietnam has so far joined 19 rounds of talks and four ministerial meetings. Member states have yet to reach agreement on nearly 20 areas, including the opening of the commodity market, the code of conduct, intellectual property, the environment, and ecommerce.

When the TPP is signed, due later this year, it will facilitate trade and investment liberalisation. The trade pact will press businesses to revise their strategies to meet the requirement of deep international integration.

Alongside the TPP, Vietnam hopes to complete negotiations of free trade agreements with the European Union and the Customs Union of Russia-Belarus and Kazakhstan this year.  

Hong Kong to construct fibre factory in Long An

Long An province has granted Hong Kong-based Huafa a permit to construct a fibre factory at Thuan Dao Industrial Zone in Long Dinh village, Can Duoc district.

The factory will incorporate advanced technologies designed to minimize environmental pollution at the IZ and surrounding areas.

It will be erected on 20.28ha at an initial estimated investment of VND2,856 billion.

Once completed, the factory will produce high quality colour fibre and textiles for both domestic and export use.

92 more foreign investors join Vietnam stock market

An additional 92 foreign-investors, including 24 organisations and 68 individuals, were granted securities trading codes in April by the Vietnam Securities Depository (VSD).

According to foreign investors, stock prices in Vietnam are currently more attractive than other regional countries and this is a good opportunity for investors to penetrate the market.

Foreign investors are now interested in the restructuring process of State-owned enterprises and commercial banks to ensure market supply and demand.

By the end of April, the VSD had granted securities trading codes to 17,022 foreign-investors, including 2,359 organizations and 14,663 individuals.

A leading provider of collaboration software, Atlassian, and creative digital and software development company Pyramid Consulting will expand their joint software development centre in Ho Chi Minh City.

The information was released at a ceremony to mark its one-year operation in Vietnam on May 12.

Over the next six months, Pyramid Consulting will recruit 60 highly-skilled Java software engineers for Atlassian to support the team focused on developing new features and plug-ins for Atlassian JIRA, the issue management software, and Atlassian Confluence, the team and content collaboration platform.

The world’s leading information technology group - IBM on May 12 launched a counseling programme on technology application and management for Dong Nai’s Department of Health and Department of Science and Technology.

The event aims to help Dong Nai province improve management capacity including skills on personnel management, project management, information and communication, security policies, information technology application, and other soft skills.

IBM Vietnam said the programme has a total investment of US$250,000.

The company will send 11 of its staff from eight countries,to conduct the programme from May 12-June 7.

It will also assist the provincial Department of Health in implementing two projects to improve public health and information technology training and management.

The goal of the two projects is to improve the skills and capacity of health staff in managing and promoting community health programmes, bettering communications on disease prevention, food safety, hygiene and epidemiology, and enhancing the management of national disease prevention programmes.

The two projects will also help  increase the quality of public health programmes through information technology application.

IBM will carry out two projects on building information security solutions and training in project management and innovative solutions at the provincial Department of Science and Technology.

The projects aim to improve the security system of the center for advanced science – technology applications in the province.

Since 2008, IBM has organised ten programmes supporting skills and professional experience for provinces across the country including Danang, Can Tho, Quang Ninh, Haiphong, and Hue in the field of human resource management and import and export market expansion.

Hanoi to host Vietnam-Hungary business forum

A joint business forum will be held in Hanoi on May 22 as part of a week-long visit to Vietnam by a delegation of Hungarian businesses, starting on May 22.

The event creates a chance for the two business communities to exchange ideas and work out future cooperation plans.

Hungarian enterprises want to cooperate with Vietnam in such areas as information technology, education, vocational training, health care, pharmaceuticals, biotechnology, chemicals, food, pesticides, wastewater treatment, environment, energy, automation, infrastructure construction, transportation, cartography, machinery manufacturing, laboratory equipment, and investment and business consultancy.

The forum will be jointly held by the Chambers of Commerce and Industry of Vietnam and Hungary.

Azerbaijan businesses to explore Vietnam market

Around 50 leading economic groups of Azerbaijan are due to make a fact-finding tour of Vietnam from May 18-20 to sound out business opportunities.

They will accompany Azerbaijani President Ilham Heydar Oglu Aliyev on an official visit to Vietnam at the invitation of State President Truong Tan Sang.

These companies mainly operate in agricultural product import-export, food processing, cement, chemicals, infrastructure construction, steel, construction materials, information technology, goods transportation, furniture, garment, glass, trade and investment.

The Vietnam Chamber of Commerce and Industry (VCCI) in coordination with the Azerbaijani Embassy in Hanoi and Azerbaijan Export and Investment Promotion Foundation (AZPROMO) will hold a Vietnam-Azerbaijan Business Forum in Hanoi on May 19.

State President Truong Tan Sang and Azerbaijani President Ilham Heydar Oglu Aliyev are scheduled to deliver speeches at the forum.

Taiwan group to invest in Quang Ninh resorts

Happiness Cement Corporation (Taiwan) plans to invest US$1 billion in ecotourism resorts in Quang Yen Commune, the northern province of Quang Ninh, reported the provincial People's Committee.

The resorts will be built on an area of 516 hectares in accordance with international standards.

The Taiwan group plans to build a 36-hole golf course, a six-star luxury hotel, tourist service centres, entertainment centres, sports centres and parks in the eco-resort.

The Taiwan investor group expects the eco-resort to be completed within eight years.

The construction time will be divided into six phases.

The Quang Ninh provincial committee asked the investor group to establish its branch in the province in order to complete field surveys by the end of this month.

The provincial committee is expected to issue the Taiwan investor with the licence for the construction of the resort in the province by the end of June.

Tien Giang lures investors with administrative reforms

The Cuu Long (Mekong) Delta province of Tien Giang is improving administrative procedures in order to attract more investors, Tran Kim Mai, the standing deputy chairwoman of the People's Committee, has said.

The province's industrial zones' management boards as well as its Department of Planning and Investment will be responsible for management of investment.

Under this reform, investors will be able to go directly to either the boards or the department instead of to many places as they did in the past, to complete procedures on land and business certificates.

In addition, the time to receive investment certificates will be shortened to under 15 days for projects invested in industrial zones. Outside the zones, the time frame will be under 30 days, compared to the more than 30 days before.

Mai also pledged that the province would continue to listen to local companies to help them solve difficulties and obstacles they face when investing in the area.

She also said the province was determined to improve human resources by reforming the vocational training system.

Tax and land incentives will also be continued, Mai added.

Late last month, Tien Giang called for investment for 24 projects from 2014-15 with total capital of nearly VND45 trillion (US$2.1 billion).

These projects include construction of infrastructure, trade centres, resorts, hospitals, and high-tech agriculture and water treatment systems.

Located about 70km from HCM City, Tien Giang Province has a good transport system, and its industrial zones are nearly fully occupied.

Agricultural products such as Ngu Hiep durian, Cho Gao dragonfruit and Long Co pomelo grown in the area are very popular as well.

In 2013, the province, for the first time, reached export turnover of more than $1 billion with main exports of rice, seafood, garments, footwear and agricultural products.

Transportation fee hikes hit Cuu Long farmer earnings

Many traders now use increasing transportation fees to force farmers in the Cuu Long (Mekong) River Delta to reduce produce prices, resulting in uncertainty about profits for farmers.

"Traders say the increase in costs is due to the monitoring of weights of transportation vehicles, now being checked nationwide, and rising petroleum prices, making deliveries more costly," Vo Van Ut in Tien Giang Province said.

"Our rice prices have to be decreased so they can compensate for the charges, so we farmers have to bear greater expenses from production to distribution," he added.

Viet Nam Food Association vice chairman Pham Van Bay said the nation's farmers were facing significant damages, especially when fertiliser and seed costs were unfavourable for them.

Since April, in Tien Giang, Long An and Ben Tre provinces, the prices of mangos and dragon fruits fell by VND5,000-10,000 (US$0.24-0.48) per kg. Also, many types of vegetable, including cabbage, tomato and pumpkin buds could not be sold and had to be used to feed cattle and poultry.

Meanwhile, agricultural produce prices remain high and even increased in both traditional markets and supermarkets.

In the Binh Dien and Tam Binh key markets, vegetable prices are VND2,000-5,000 ($0.10-0.24) higher than two to three weeks ago. Fish and shrimp prices also have seen VND5,000-10,000 ($0.24-0.48) hikes.

Small traders here also attribute the price increases to more expensive transportation and fuel charges.

Most transportation companies say they usually make profits by allowing vehicles to carry goods with weights exceeding the levels allowed by the law. But now, as vehicles are being strictly checked by authorities, many of them have suffered losses.

Officials from a firm said that with a 15-tonne truck carrying the permitted weight, it would be difficult for it to hire a driver and cover fuel costs if it maintained a transportation charge of VND130,000-140,000 ($6.19-6.67) per tonne.

"In my opinion, the tight supervision of vehicle weights will create equality for transportation enterprises. The price of goods will rise in the short term, but they will become stable in the long run," said Tran Quoc Dung, the owner of a transportation firm in HCM City.

Cooling-product sales heat up

Purchases of air conditioners, refrigerators, electric fans and other electrical products to ward off the summer heat soared during the past two months in HCM City.

Similarly, sales of these appliances are expected to to increase in Ha Noi.

According to Nguyen Huu Quoc Cuong, in charge of electronic and refrigerator products for electronic retailer Dienmay.com, purchases of these products increased sharply in March, when the hot season began in the southern city.

Air-conditioners were among the best selling products. Also, electric fans and steam fans saw strong sales, because they were more affordable for the average consumers.

Meanwhile, officials at Nguyen Kim electric retail supermarket said purchases in mid -March were seen to improve about four times, other than in January of this year.

Meanwhile, in Ha Noi, the consumption of these products remained slow, as the summer heat came later than usual, which had just arrived in the capital city several days ago.

According to the owner of an electric store in Ha Noi, consumers rushed to buy air conditioners at the same time last year. But this year, as it remained cool until the beginning of May, the purchases remained low, to date.

However, retailers expected the buying demand would improve soon, with the first heat of over 39 degree celsius hitting the northern provinces, including Ha Noi, starting at the end of last week.

In an effort to stimulate demand, electronic supermarkets in Ha Noi also introduced many promotional programmes with discounts up to 50 per cent this month to attract buyers.

The consumption of televisions was also expected to increase by 30 per cent to 50 per cent this season, as the World Cup takes place in June.

Delta to swap rice for higher value crops

Authorities in the Cuu Long (Mekong) River Delta are planning to switch from low-yield rice to higher-value crops like maize, sesame, peanut, soybean, and others on 112,000ha by 2015, the Crop Production Department has said.

As part of a master plan on restructuring agriculture to ensure sustainable development, they would also seek to use 3.8 million hectares of arable land in the most effective manner, diversify crops, and mitigate the pressure to consume rice amid export hurdles, Pham Van Du, deputy director of the department, told a meeting in Tien Giang Province yesterday.

With the spring-summer and summer-autumn crops usually plagued by low productivity, local authorities should encourage farmers to plant other, more lucrative crops instead, he said.

Based on local factors, they should advice farmers on what crops to grow, he said.

Last year other crops were grown on 87,314ha of low-yield rice fields in the region, with Dong Thap Province leading the way with 30,725ha, followed by Soc Trang and Tra Vinh, he said.

The switch has fetched farmers higher profits in recent times, he said.

Growing sesame on rice fields has enabled farmers in Dong Thap to earn profits of VND25.3 million (US$1,199)per hectare, much higher than from rice cultivation, which yields only around VND2.45 million ($116.2), he added.

Growing soybean, maize, and lotus in rotation on rice fields has also fetched higher profits than rice, according to the Dong Thap Department of Agriculture and Rural Development.

Farmers in Can Tho, Kien Giang, Long An, and Bac Lieu earn more since they plant sesame, soybean, maize, peanut, and other crops in their paddies, the meeting heard.

But delegates warned that the biggest problem is to ensure steady outlets for the new crops failing which farmers would return to rice.

Minister of Agriculture and Rural Development Cao Duc Phat urged local authorities to instruct farmers to grow crops whose demand is known.

He also told them to focus on switching from low-yield rice to maize since there is a big demand for the crop.

"Now we produce 5.2 million tonnes of maize.Last year, the country imported 2.3 million tonnes ... and the demand is increasing to meet the needs of the livestock and seafood industries."

But as for switching to sesame, chili, dragon fruit, or watermelon, farmers should be careful since their prices would no longer be high if there is an increase in supply, he said.

He called on relevant agencies and research institutes to come out with a "technical package" on instructing farmers in planting new crops.

His ministry would work to accelerate implementation of the Government's policies for supporting farmers switching from low-yield rice to other crops and provide funding to train them, he said.

Local authorities should strive to establish links between farmers and companies to ensure outlets for crops, he added.

Phu Yen sugarcane farmers reap large-scale benefits

Large-scale sugarcane fields that use machinery for cultivation have brought high yields and profits for farmers in three districts in the central province of Phu Yen.

Under the pilot model, farmers have also received instruction in cultivation techniques of new high-yield sugarcane varieties.

Nguyen Trinh in Song Hinh District's Ea Ly Commune said he had planted the K95-156 sugarcane variety and harvested 112.6 tonnes per ha for the 2013-14 crop.

The province's average sugarcane yield is usually only 60 tonnes per ha.

Farmer Huynh Thai Binh in Dong Xuan District's Xuan Quang 1 Commune said it was the first time he had cultivated sugarcane on a large-scale area with mechanisation.

For the 2013-14 sugarcane crop, the model programme was carried out on 10-ha fields in Song Hinh, Son Hoa and Dong Xuan districts in the province.

Using machines to fertilise sugarcane and clearing of weeds in fields helped farmers save about VND2.5 million (US$120) per ha.

"This model saved labour costs and helped us to clear weeds," Binh said.

Nguyen Thanh, deputy director of the Phu Yen Agriculture and Fishery Extension Centre, said mechanisation had helped cut labour costs.

Farmers have had average profits of VND62.3 million ($2,960) per ha, about VND18.5 million ($880) per ha more than for small-scale fields cultivated by hand.

However, farmers said the cost of machinery was high, and urged local authorities to provide them with soft loans.

The province's Department of Agriculture and Rural Development plans to develop this model in other areas of the province.

Berjaya HCMC projects continue their long delay

Two projects by Malaysia’s Berjaya Land, a wholly-owned subsidiary of Berjaya Leisure (Caymans) Ltd., have seen zero progress after being granted investment certificates many years ago.

The two projects – Vietnam International University Township and Vietnam Financial Centre – are both located in Ho Chi Minh City.

Vietnam International University Township (VIUT)’s building site is located in the southern hub’s Hoc Mon district and has the registered investment capital of $3.5 billion.

Licensed in 2008 and scheduled for completion in stages from 2011 to 2021, the projects has seen no progress as of yet.

On a trip to the site, VIR reporters found a decaying construction area interspersed with houses that, according to local people, “cannot be improved or repaired because of the project.”

VIR also found that in 2010, local authorities sent out a crew to determine the status of the site and report on still existing houses and environment, but since then no more action has been taken.

Nguyen Huu Hung, Chairman of the Hoc Mon District People’s Committee said he had no additional information on the project, as it was managed directly by the city’s People’s Committee.

Hung admitted that delayed projects, like Berjaya’s, had very negative impacts on local people and were hurting the committee’s economic and social development strategy.

Berjaya is similarly lagging on its $930 million Vietnam Financial Centre (VFC) in Ho Chi Minh City - large scale financial centre as the developer promised.

The complex is located on a highly sought-after piece of property in the city centre that is currently operated by a smattering of businesses from car parking to tennis courts and motels, rather than the monolithic skyscraper and surrounding facilities the company proposed.

Delayed large-scale real estate projects feature prominently throughout the country, not just in Ho Chi Minh City, says economist Dr Dinh The Hien.

“I am not surprised that many of those projects are from the real estate sector,” he said.

He analysed that in many projects, developers find ways to re-sell their projects to other sub-investors after they finished administrative procedures.

Hien added that those projects were not in any way contributing to the state budget and causing instability in the market.

Nguyen Hoai Nam, general director of Berjaya Vietnam, responsible for the company’s projects in the country, said the main reason for slow progress was the floundering real estate market.

“This prolonged downturn not only exceeded Berjaya’s fears, but those of many other companies and investors as well,” Nam said.

Nam explained that for VIUT Berjaya has asked permission from the Ho Chi Minh City People’s Committee to divide the project into smaller phases, in which an area of 200 hectares would be firstly developed, out from the total of 900.

Nam said the reduction was more commensurate with current market demand, which is focused on affordable housing.

For VFC he said the delays were procedural. But that they also planned to scale down this project into phases with the main tower to be constructed first. Nam noted that the financial resources for both projects were on track.

“We have successfully finished the financing for both projects and will make the details public very soon,” he said.

Representatives from the Ho Chi Minh City Department of Planning and Investment, however, were not available to comment on the issue.

Berjaya is the owner of a range of projects nationwide, including the Sheraton and InterContinental hotels in Hanoi, Long Beach resort on Phu Quoc Island and the $500 million Hanoi Garden City residential area in Hanoi’s Long Bien district.

Sakura tower continues to defy local authorities

The 20 storey Sakura Tower, located at 47 Vu Trong Phung street in Hanoi was recently discovered to be putting on the finishing touches without permission from local authorities, reported dantri.com.vn.

The developer was fined tens of thousands of dollars but is refusing to halt for a single moment. To date, construction is still in hurried progress.

Sakura Tower was invested in by the domestic firm Hung Tien – Kim Son Joint Stock Company with contractor Vinaconex – Alphanam joint venture.

Started in 2009, the building has an area of more than 2,600 square metres, 48.2 per cent of which is dedicated to the tower itself.

The building was previously fined, back in 2010 and again in 2011, due to building without a construction licence, however, the developers have been relentless. Construction continued despite a VND500 million ($23,800) fine the second time of 2011.

The investor further defied regulations when it converted two technical floors used for functions like power system (2,000 square metres) into apartments for sale.

Answering questions posed by dantri.com.vn’s reporters, leaders from the Thanh Xuan Trung People’s Committee, where the project is located, said local authorities were very aware of the investor’s wrongdoings but that they were unable to do anything.

The leaders also said the committee requested several times that the investors set up a local management authority, but were ignored. Local authorities have even been penalised by the higher ups in government for their inaction, but to no avail.

According to a source from the Hanoi Construction’s Inspectorate, local authorities had loosened their management of the building and were avoiding the problem altogether.

The source added that there were stricter measures available to the local authorities such as cutting off its power and water supply via police co-operation.

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