Hue to spend $52m on agriculture

Authorities of the central province of Thua Thien-Hue is directing their resources on implementing 12 priority projects worth nearly VND1.2 trillion (US$52 million) to accelerate the agricultural restructuring process by 2020.

It includes the upgrading of a storm-proof wharf and expansion of Thuan An fishing port, construction of infrastructure for aquaculture in Phong Hai Commune of Phong Dien District, investment in facilities for shrimp breeding in Phu Vang District’s Phu Xuan Commune and Phu Loc District’s Vinh Hung Commune, as well as other coastal forest and lagoon development projects.

Also, topmost on the agenda of the province is a project to enhance food safety management and build a food safety production and trade chain for the period between 2016 and 2020. Other projects include the improvement of Thanh Tra grapefruit output and quality, large-scale fields for rice, groundnut and vegetables, and setting up pig and cow farms.

It is aiming for a sustainable agriculture in combination with new rural development and environment protection.

The priority fields for restructuring include cultivation, animal husbandry, forestry, fisheries, and irrigation, as well as the processing industry and key agricultural commodities.

Specifically, in cultivation, about 3,300ha of rice growing areas in the mountainous, coastal and water-scarce areas will be used to grow corn, groundnut, vegetables, flowers and aquaculture.

By 2020, the forest area will reach 293,250ha, including 122,100ha of commercial forests.

Meanwhile, around 900ha will be used for shrimp breeding on sand for export, with a capacity of about 13,500 tonnes.

The proportion of offshore fishing vessels with a capacity of at least 90CV will be increased from the current 15 per cent to 30 per cent by 2020, so that the offshore seafood output would account for over 70 per cent of the total output.

Thua-Thien Hue is targeting an agriculture growth of over 3.5 per cent, with seed and fisheries outputs of 310,000 tonnes to 320,000 tonnes and 73,000 tonnes per year, respectively, and doubling the income of rural families by 2020.

Unprofitable animal farming hurts agricultural production in Dong Nai

The southern province of Dong Nai estimated local agro-forestry-fishery production value at 17.17 trillion VND (over 756.8 million USD) in the first half of 2017, up 2.48 percent year on year.

The provincial People’s Committee said production value was about 16.1 trillion VND (709.69 million USD) in agriculture, 127 billion VND (5.6 million USD) in forestry, and 911 billion VND (40.1 million USD) in fishery. 

The figures respectively increased by 2.3 percent, 1.84 percent and 5.81 percent from a year earlier. 

The committee attributed the slower growth in agricultural production value to falling sales of animal products, especially pork.

Difficulties in selling pork has shrunk pig farming, the committee said, adding that it ordered authorities and sectors to support farmers by opening stores selling pork at stabilised prices and encouraging local organisations and businesses to consume more pork.

Dong Nai, part of the southern key economic region, is a major pig farming hub in Vietnam.

Firms promote pork demand, farmers struggle

With farmers still having difficulty selling pigs, many businesses in HCM City have stepped up programmes to stimulate pork demand.

Vissan Co., Ltd is offering discounts of up to 49 percent on VietGap type 1 pork from June 11 to 15 at all of its fresh meat sales points including at its shops, Saigon Co.op’s retail system, Vinmart supermarkets, Vinmart , Satrafoods, Aeon Citimart, Giant Hypermarket, Auchan, Cocomart, Queenland mart, HQC Mart, and My Duc.

With the discounts, the prices are down to 40,000 VND a kilogramme for pork chops, 62,000 VND for thighs, 57,000 VND for shoulders, 66,000 VND for minced pork, 31,500 VND for pork spine and so on.

From June 12 to 15, the company is also implementing a programme to sell cuts of pork at just 25,500-36,000 VND a kilogramme depending on type.

Dang Thi Phuong Ninh, the company’s deputy general director, said more than 530 tonnes of pork were sold in the period between June 6 and 10, when the company cut VietGap type 1 pork prices by 30-42 percent, an increase of more than 51 percent over normal, with the increase reaching 130 percent on some days.

A programme to sale retail pork at wholesale prices by An Ha Services Co., Ltd this month has been very successful in stimulating demand for the products of pig farmers in Cu Chi and Hoc Mon districts.

Nguyen Thi Hong Tham, director of An Ha Services Co., Ltd, said within a week VietGap pigs weighing 120kg were sold out.

Now the company has started to sell animals weighing 90-100kg, and sells around 40 a day, and 70 on occasions, she said.

The number of customers has increased so much that its sale points have to issue tokens, she said.

Many customers want the company to open shops in other locations so that they do not have to travel long distances, but the company lacks the space and human resources for that, she said.

According to experts, the response of consumers and the active support provided by city businesses would help resolve the difficulties faced by pig farmers.

Thua Thien-Hue’s fishing output surges after maritime environment incident

The total output of aquaculture and fishing of the central province of Thua Thien-Hue reached 17,736 tonnes in the last five months, a year-on-year increase of  15.43 percent. 

Of the figure, aquaculture contributed over 2,700 tonnes while fishing, over 14,942 tonnes, up 4.4 percent and 17.8 percent, respectively, showing the recovery of the locality’s aquaculture and fishing after the marine environment incident last year.

As many as 950 billion VND (nearly 41.9 million USD) of compensation has been handed over to local authority so far to pay for locals, who were affected by the incident.

Accordingly, over 270 billion VND (11.76 million USD) was earmarked for owners of trade entities in coastal wards, communes and townships in the fourth time of compensation. 

Vice Chairman of the provincial People’s Committee Nguyen Van Phuong said local authority continues to direct local residents to use the compensation in right purposes to resume production, aquaculture and fishing activities, towards stabilising sustainable livelihoods.           

The mass fish deaths were first reported on April 6, 2016 when a large number of fish washed ashore in Ha Tinh province. The incident also occurred in Quang Binh, Quang Tri and Thua Thien-Hue.

About 70 tonnes of dead fish were found in the four provinces and Thua Thien-Hue alone reported 35 tonnes of farm-raised fish had died.

The pollution also affected more than 260,000 people who earn their living from the sea.

In June last year, Formosa accepted responsibility for the fish deaths and pledged compensation to local fishermen and to help renew the polluted marine environment.

Australia seeks hi-tech agriculture link with Mekong Delta

The Australian Consulate General in the southern metropolis of Ho Chi Minh City worked with the Department of Agriculture and Rural Development in the Mekong Delta city of Can Tho on June 12 to explore cooperation in hi-tech agriculture in the coming time.

Cao Thi Thanh from the Consulate General said Australia has developing hi-tech agriculture, while Vietnam and the Mekong Delta particularly boast large potential in this sphere. 

She cited Australian statistics that only one percent of land in the country is suitable for agricultural production with the involvement of four percent of the population. 

However, Australia has the highest proportion of self-supplier of farm produce in the world. Averagely, an Australian farmer could produce farm produce for 190 people. 

Apart from domestic provision, 80 percent of the farm produce is exported. The income of an Australian farmer amounts to 100,000 USD per year.

She noted that Australia wants to seek cooperation opportunities with the Mekong Delta in technology and human resources training.

Vice rector of Can Tho University Le Viet Dung said the delta has recorded significant strides in the field of high technology with many products receiving good feedback. 

Such partners as Japan and China are stepping up investment in agricultural machines. Thereby, Australia should conduct fact-finding trips to produce highly competitive machines.

Professor Le Van Hoa said the weakness of the Vietnamese agriculture lies at post-harvest losses, especially for rice, animal husbandry, vegetables and fruits.

This is attributed to the country’s limitations in processing, preservation and transport, he said, adding that Australia is strong in technology, harvest chain, processing and transport of farm produce.

He hoped Australia will introduce the latest machines to increase the region’s post-harvest efficiency, quality of products, and farmers’ income. 

This will be a key factor to help Vietnamese farm produce meet Global Good Agricultural Practices (GlobalGAP), he added.

Dung also suggested exchanging experts and opening training courses and workshops as well as expanding effective production and processing models.

Swiftlet farming looks towards sustainable development

Experts at a workshop in Nha Trang city, central Khanh Hoa province, have suggested expanding  swiftlet farms apart from exploiting the bird’s nests in nature.

The event was held within the framework of the 2017 Nha Trang-Khanh Hoa Sea Festival from June 10-13, aiming to seek measures for the sustainable development of the swift-breeding sector. It drew the participation of more than 100 scientists, experts and State management officials in science, technology, agriculture, rural development, natural resources and environment.  

Associate Prof. Nguyen Lan Hung Son from Hanoi National University of Education and MA Ho Thi Loan from the Vietnam Academy of Science and Technology said that by March 2017, up to 36 cities and provinces have farmed swifts for their nests with a total of more than 5,060 swiftlet houses. 

Along with southern and central localities such as Tien Giang, Ho Chi Minh City, Kien Giang, Khanh Hoa, Phu Yen, Binh Dinh and Ninh Thuan, several northern cities and provinces like Hai Phong, Quang Ninh and Ninh Binh, and Central Highlands localities like Kon Tum and Gia Lai have also rolled out swiftlet farming.

With 14 speeches, participants touched upon scientific and technological issues in service of the sector, quality and origin of the bird’s nests, impacts of climate change on the formation and development of swifts in the northern provinces, and building and protecting the brand name of Khanh Hoa bird nests.  

According to Associate Prof. Pham Cong Hoan from the Ministry of Science and Technology, despite their good quality, the annual output of Vietnamese bird nests still remains low, at about 10 tonnes, just equivalent to 10-14 percent compared with that of Malaysia and Thailand. 

Hoan and other delegates at the workshop shared the view that Vietnam is blessed with favourable natural conditions for swiftlet farming such as a long coastline, pristine natural caves and islands. 

They suggested the Ministry of Agriculture and Rural Development soon issue an official circular on the management of the sector.

Municipal and provincial authorities should put forth orientations and strategies on swiftlet farming development until 2020 with a vision towards 2030, they said. 

At the same time, it is necessary for specialised agencies to conduct more scientific research in order to meet the increasing demands of the sector, including the processing method to add more values to the products. 

In a recent move, the Vietnamese Swiftlet Farming Association under the Vietnam Farms and Agricultural Enterprises Association has made its debut in HCM City, aiming to link the State, scientists, entrepreneurs and farmers in the swift-breeding industry, supporting swift breeders to sell their products at reasonable prices, and building a brand for Vietnamese bird nests for both domestic and export markets.

The association will work to ensure products supplied by members of the association will have consistent quality and clear origin to protect consumers, he said.

Swift nests are high in protein, low in fat and contain various amino acids essential to the human body and other beneficial substances.

Swifts usually build their nests in deep caves on islands or along steep cliffs. In the past, people used their nests only to serve the king and noble families.

The swift-breeding industry has developed quickly in many places such as Indonesia, Malaysia, Thailand, the Philippines, Australia, and Hong Kong, with Indonesia producing about 100 tonnes of nests annually and Thailand and Malaysia about 60-70 tonnes a year.

In Vietnam, high profits have lured many investors to invest in breeding the birds indoors in recent years. 

Currently, raw bird nest is priced at 20-30 million VND (880-1,322 USD) per kilo, while a kilo of refined bird nest is at 40-45 million VND, and even 100-200 million VND for some special types.

EVN vows to maintain high power generation during dry season

The Electricity of Vietnam (EVN) Group will ensure safety and reliability of its transmission networks, particularly the North-South 500kV transmission line, during the dry season with an anticipated surge in demand.

The State-run group plans to produce an average of 578 million kWh of electricity per day with the additional charge capacity hitting 31,700 MW in June, one of the hottest months in the year and a peak time for power consumption. 

A blistering heat wave hit northern and central Vietnam in the first week of June with temperatures hovering around 37 – 40 degrees Celsius. The two regions were exposed to temperatures above 35 degrees Celsius for 10 – 18 hours per day while the temperature reached 42.5 degrees Celsius in some areas of the north.

The hot spell led to record power usage of 629 million kWh on June 2, pressuring the system. Hanoi reported the highest power consumption in history, over 77 million kWh, on June 5, an increase of 47 percent from the same day last year.

According to the National Centre for Hydro-meteorology Forecasting, the northern and central regions of Vietnam are likely to experience one more hot spell this month.

To ensure power supply during upcoming national high school examinations and the third session of the 14th National Assembly, EVN has directed its member companies to prepare all necessary facilities and work around the clock to handle any emergency.

It also decided not to cut off electricity for maintenance and advised customers to save power by turning off electricity devices when they are not in use and setting air conditioners to at least 26 degrees Celsius.

Additionally, the firm announced in May that it will reduce the number of days required for a customer to get power access from 10 to seven and streamline the procedure from three to two steps in an effort to improve service quality.

Vietnam-EU trade up 16.2 percent in five months

Two-way trade between Vietnam and the European Union (EU) grew 16.2 percent year-on-year in the first five months of 2017, according to the Ministry of Industry and Trade. 

Of the figure, Vietnam’s exports to the EU rose 4.2 percent, mostly apparel, footwear, agro-forestry-aquatic products and computers, while its imports from the EU up 14 percent, including machinery, equipment, pharmaceuticals and dairy products. 

The country’s major importers were Germany, the UK, France, Italy, the Netherlands and Spain. 

Exporters hope that the EU-Vietnam Free Trade Agreement (EVFTA), which is expected to take effect in 2018, will increase Vietnam’s exports to the bloc by 50 percent by 2020. 

The ministry said in order to navigate the demanding EU market, domestic firms must overcome technical barriers by meeting strict requirements regarding food safety and hygiene and origin traceability. 

First Counsellor of the EU Delegation to Vietnam Miriam Garcia Ferrer said through the EVFTA, the EU could help Vietnam improve trademark and product quality.-

Honda Vietnam to ensure satisfactory prices in market     

Honda Vietnam will work with its agents nationwide to suggest ways to give the most satisfactory prices on several best-selling Honda vehicles to the customers.

This was revealed by Toshio Kuwahara, General Director of Honda Vietnam, following the recent increase in vehicle prices in the market.

The action was made after the Ministry of Finance added several new best-selling models of Honda motorbike into the updated list of auto and motorbike registration fees according to the ministry’s Decision 942/QD-BTC, in which the fee would be raised following the increase of the vehicles’ price in the market.

Kuwahara said several Honda agents had themselves increased the vehicles’ price, and so they were placed in the list.

The prices of Honda Air Blade, Vision, SH150i (CBS) and SH150i (ABS) have been increased since May 24 to VND45 million, VND36.6 million, VND101 million and VND114 million, respectively, up between VND7 million and VND22 million, compared with the previous prices.

With the new change, customers will also have to pay an additional significant amount of money as registration fee when they buy the vehicles.

The fee is 2 per cent of the motorbike value. As for motorbikes registered in the major cities, including Ha Noi, HCM City, Da Nang, Hai Phong and Can Tho and provincial cities and townships where provincial people’s committees base, the customers will have to pay registration fee worth 5 per cent.

According to regulations, the finance ministry has the right to adjust the calculation of registration fee following the market prices, not the price listed by the firm. The adjustment is expected to fix the price and prevent loss to the State budget, ensuring the equality of registration fees for vehicles among firms.

Kuwahara said the firm would make efforts to supply a stable volume of motorbikes to the market, as well as raise the products’ quality to meet the customers’ demand.

ROK trade delegation explores business prospects in Vietnam

A trade delegation from the Republic of Korea city of Daejeon met today (June13) with Ho Chi Minh City governmental and business leaders, reported the Vietnam News Agency

The delegation, comprised of governmental officials, manufacturers and exporters of many products, was on a tour of Vietnam specifically considering the possibility of increasing commercial and services trade in many segments of the economy.

The visit was intended to explore opportunities for enhanced collaboration between the Korean and Vietnamese sides, said Kwon Sun Taik, the mayor of Daejeon, who said the delegation was especially interested in hi-tech manufacturing.

On the occasion, the visiting delegation visited the site of a Republic of Korea representative office that is getting ready to soon open at the Diamond Plaza in District 1 of the City.

Biggest tire industry expo opens in Ho Chi Minh City

Most everything is dedicated to tires and retreads at this year’s 5th international exhibition and conference for the rubber industry that got underway today (June 13) at the Saigon Exhibition and Convention Centre.

The show threw open its gates at 9am with conferences, followed by a keynote speaker. The trade show itself will run 9am until 5pm daily June 13-15, reports the Vietnam News Agency.

All the biggest names in the tire and retread industry were on hand for the launch with a grand total of more than 200 exhibitors from roughly 15 countries exhibiting their wares at the country’s largest industry exposition.

This show will definitely allow visitors to leave better informed about tires and retreads than any other like it in the Southeast Asian region and with a solid understanding of the aftermarket in the region, said the organizers.

For more information please visit http://www.rubber-tyre.com.vn/.

China remains biggest trade partner of Vietnam

China remained the top trading partner of Vietnam with the value of US$32.76 billion during the first five months of this year, up by 23.6% the same period last year, according to the General Department of Vietnam Customs.

It was followed by the Republic of Korea with US$23.94 billion (up by 45.2%), the US with US$19.96 billion (up by 12.9%) and the EU with US$19.66 billion (up by 13.3%).

Many export products to China obtained high consumer growth, for example, footwear (up by 19.1%), machines, equipment and tools (up by 84.5%) and seafood (up by 38.1%).

Particularly, China was the largest importer of Vietnamese fruit and vegetables valued at US$1.06 billion (up by 51%), which accounted for 75% of the country’s total exports.

In the same time, only three out of the top ten trading partners of Vietnam witnessed trade surplus, of which Vietnam obtained US$12.07 billion trade surplus from the US, US$10.03 billion from the EU and US$152 million from Japan.

Vietnam is 4th in shrimp imports to US market for April

For the month of April, official US import data showed that Vietnamese shrimp companies accounted for the fourth largest share of the market narrowly being edged out for third by Thailand.

US shrimp imports rose 16% in volume year-on-year for the month of April to 45,764 metric tons. The increase in tonnage came despite a 2% rise in the average per-kilo value to US$9.62 this year. 

The volume and price rises combined resulted in an overall shrimp import value increase of 18% to US$440.4 million for the month of April, according to the US import data.

Imports from India surged 80% year-on-year to 13,871 metric tons making companies from the country the largest holders of market share. Indonesia and Ecuador at 8,597 and 6,488 metric tons, respectively, followed.

Imports from Thai companies to the US totalled 3,967 metric tons, making it the fourth largest market share holder trailed by Vietnam a close fourth, at 3,291 metric tons for the month of April.

WB approves US$53 mln to improve urban infrastructure in Lao Cai, Phu Ly

The World Bank has recently approved US$53 million in funding for urban infrastructure development in two emerging middle cities in northern Vietnam, Lao Cai (Lao Cai province) and Phu Ly (Ha Nam province).

The financing will be added to the Medium Cities Development Project (MCDP), which has so far benefited over 210,000 people, exceeding initial targets. The additional investment will be used to bridge the financial gap caused by exchange rate fluctuations since the project inception.

The MCDP aims to improve infrastructure services, including water treatment and wastewater collection; flooding prevention in low lying areas; transport services in areas with poor and non-existent roads or access to transport networks.

“The Medium Cities Development Project has shown that improved infrastructure services can transform communities – water and sanitation facilities lead to healthier children and families; flood prevention infrastructure provides opportunities to introduce much-needed public space; and better roads bring communities closer to economic opportunities. This additional investment means even more communities will benefit from improved urban environments,” said Ousmane Dione, World Bank Country Director for Vietnam.

The upgrading of basic infrastructure facilities such as sewer systems and rehabilitated roads have helped 85,000 people in several wards of Lao Cai and Phu Ly cities. Flooding and pollution caused by wastewater have also been addressed through improvements of retention lakes, drainages and sewer system and construction of Wastewater Treatment Plants.

EVN adds 495 MW to national power grid

The Electricity of Vietnam (EVN) has put into operation four more turbines, including three of Trung Son hydropower plant and one at Thai Binh thermoelectric plant, in the first 5 months of 2017, adding 495 MW to the national capacity.

In May, the state-owned completed and put into use eight 110-500kV transmission projects, bringing the total number of newly operated projects to 45 in the first five months. 

The works included capacity expansion at Cau Bong 500kV transformer station that supplies power to southern Vietnam, the Van Tri – Quang Minh 110kV transmission line to provide electricity to Hanoi and projects for connecting Thang Long and Thai Binh thermal power plants to the national grid.

The company will start operating Hiep Hoa – Long Bien line of the Hiep Hoa – Dong Anh – Bac Ninh 2 500/200kV transmission network and several 500-200kV transformer stations Dong Anh, Long Bien and Bac Ninh 3.

The Phu Nghia 110kV and the expanded Thuong Dinh 110kV transformer stations in Hanoi will also be operational soon to meet the demand surge during this summer.

Da Nang increases transformer station’s capacity for APEC

An upgraded transformer of the Hoa Khanh 2 110kV transformer station in Hoa Khanh industrial park, Lien Chieu district, Da Nang was put into operation to ensure sufficient power supply for the APEC Leaders’ Meeting and related events to be held in the city in November.

Vo Hoa, Deputy Director of the Da Nang Power Company Limited, said that the capacity of transformer T1 was upgraded to 63 MVA from the previous 40 MVA. 

The automation of the station will be completed before November 30, he added.

The upgrade of Hoa Khanh 2 transformer station aims to promote stable electricity supply for socio-economic development in Lien Chieu district while assuring adequate power for business and production in Hoa Khanh and Lien Chieu industrial zones.

In order to better serve APEC meetings, the company has put into operation the Hoa Lien and Hoa Xuan 110kV transformer stations while upgrading the An Don and Xuan Ha 110kV stations and the 22kV transmission line for Ba Na tourism site, according to Hoa.

In addition, the company also pays special attention to inspecting power grids during hot weather. It is currently operating a large number of remote controlled equipment to protect power grids, using Supervisory Control and Data Acquisition (SCADA) system.

Kien Giang makes US$11.3 billion plan for development

The southern province of Kiên Giang aims to mobilise VNĐ255 trillion (US$11.3 billion) for socio-economic development by 2020.

Of this, as per plan, 68 per cent will come from the private sector, 13 per cent from the State budget, 6 per cent from foreign direct investment and the remaining 13 per cent from other sources.

To meet this target, the province has drawn up measures to improve its investment environment and accelerate investment, which includes establishing one-stop shop administrative procedures for granting investment licence and improving connectivity with other provinces and cities.

Kiên Giang will review, supplement, adjust and improve the quality of its planning activities and its plans – both master plans and plans for specific sectors such as tourism, agriculture, aquaculture, industry; it will create favourable conditions for enterprises to upgrade technologies and access markets and credits; and train labour.

Mai Văn Huỳnh, vice-chairman of the provincial People’s Committee, said Kiên Giang would focus on improving its infrastructure, speeding up the construction of the southern coastal road and the Lộ Tẻ-Rạch Sỏi stretch of National Highway No 80; consolidating its sea dyke system and irrigation projects; and investing in electricity grid on islands.

Up to now, Kiên Giang has attracted 690 domestic projects worth VNĐ451.5 trillion. Of this, 321 projects have been in operation, accounting for 31 per cent of the registered capital. The province has also attracted 41 FDI projects from 19 countries and territories with a total registered capital of $1.44 billion, of which 37 per cent has been disbursed. 

Vietnam Airlines offering sales on Hà Nội-Bangkok airfares

Flag carrier Vietnam Airlines is offering sales on flights from Hà Nội to Bangkok, Thailand.

Accordingly, a round-trip airfare from Hà Nội to Bangkok will cost only VNĐ899,000 or US$35, excluding taxes and fees.

The promotional offer can be availed until September 30, and is applicable for departure until March 31, 2018.

Tickets can be purchased through www.vietnamairlines.com, and the airline’s booking offices and agencies nationwide.

Currently, Vietnam Airlines operates three return flights on the route each day. The flights from Hà Nội depart at 8.50am, 12.45pm and 4.05pm and arrive in Bangkok at 11.55am, 3.55pm and 7.05pm.

Việt Nam has been a rising star in Thailand’s tourism source market with arrivals projected to break the 1 million-barrier this year, the Bangkok Post reported.

 “Việt Nam may not be high profile, but it is one of the rising stars in terms of the growth potential,” the newspaper quoted Walailak Noypayak, executive director for Asean, South Asia and South Pacific at the Tourism Authority of Thailand (TAT) as saying.

Meanwhile, Thailand is also one of leading countries in the number of tourists visiting Việt Nam. Some 270,000 Thais visited Việt Nam last year, up 24 per cent year-on-year, according to the Việt Nam Administration of Tourism.

HCM City, RoK’s Daejeon city further cooperation

Representative office of the Republic of Korea’s Daejeon city, inaugurated in Ho Chi Minh City on June 13, will make significant contributions to promoting cooperation between the two cities, especially in the fields of Daejeon’s strengths like high technology and smart city construction.

Chairman of Ho Chi Minh City People’s Committee Nguyen Thanh Phong made the statement while holding a reception on June 13 for Daejeon Mayor Kwon Sun Taik who is on a visit to the Vietnamese southern hub.

Expressing his delights over the growing cooperation and friendship between the two cities, Phong lauded the role of RoK enterprises and communities in Ho Chi Minh City in the city’s socio-economic development.

He said that they have served as a bridge to consolidate and branch out relations between Ho Chi Minh City and the RoK’s localities as well as between Vietnam and the RoK in general.

For his part, Kwon Sun Taik said he was impressed with vibrant Ho Chi Minh City, adding that Daejeon has huge potential and boasts great opportunities to collaborate with Ho Chi Minh City in technology development and smart city building.

The Daejeon Mayor took the occasion to propose the city’s leaders to create more favourable conditions for the newly-inaugurated representative office, helping develop cooperation between the two cities, especially in trade, investment and tourism.

Daejeon is the fifth largest metropolitan city in the RoK. In the past four decades, Daejeon has led the future of the RoK in science and technology. It is home to 30 governmental-funded research institutes, 19 universities and 400 private funded business R&D centres.

Trung Nam Group to join renewable energy sector

On June 10, Trung Nam Construction Investment Corporation (Trung Nam Group) and Trung Nam Wind Power Joint Stock Company signed contracts with partners to implement wind and solar power projects in the central province of Ninh Thuan.

The future partners of Trung Nam Group in these projects are prestigious contractors in and outside the country, including Lilama 45.3 Joint Stock Company, Green Cosmos Marketing Pte Ltd., and especially Enercon and Syntegra Solar, two giants specialising in wind and solar power equipment provision.

Nguyen Tam Tien, general director of Trung Nam Group, noted that the collaboration with these two energy giants from Germany proves the high determination of the investors to implement the projects. According to him, the investors have rejected out-dated technologies from several foreign countries and levelled up the quality of investment package with high initial installation costs.

“These two Germany-based contractors are considered the Mercedes of the wind and solar energy industry due to their certified reputation. With the high quality, low-cost operation, long-term insurance, and high performance offered by the contractors, Trung Nam Group believes that the projects will efficiently come into operation and contribute to the budget of Ninh Thuan after their first phase is completed next year,” said Tien.

The collaboration of Trung Nam Group with Enercon and Syntegra Solar is expected to exploit the potential and advantages of Ninh Thuan in wind and solar power sectors. It also marks a milestone in bilateral economic partnership between Vietnam and Germany, paving the way for future collaboration in renewable energy development.

The construction of the Trung Nam wind power plant began in August 2016 with the total investment of VND3.96 trillion ($174.5 million). The factory is set to have a capacity of 90-100 MW, generating 286 million kWh of energy. Phase I of this project is scheduled to be completed in the third quarter of 2018, while phase II will be finished in the second quarter of 2019.

Trung Nam Group is also conducting a feasibility study of a solar power project as part of the wind power project. The company said it may develop a 515 MW solar power project in Ninh Thuan.

Wind and solar power projects carried out by Trung Nam Group are expected to set the foundation for future integration projects in renewables in Ninh Thuan. Besides, according to investors, these projects will encourage other national and international investors to take advantage of renewable and clean energy in order to reduce environmental pollution caused by fossil fuel usage, and to support the model of energy usage provided by the Vietnamese government.

5M trade deficit down on 4M figure

Vietnam’s export turnover in the first five months of this year reached $79.3 billion, an increase of 17.4 per cent year-on-year, with the US remaining the largest destination ($16 billion, up 9.9 per cent), followed by the EU ($14.6 billion, up 9.5 per cent), China ($10.5 billion, up 40.3 per cent), ASEAN ($8.6 billion, up 26 per cent), Japan ($6.4 billion, up 16.6 per cent), and South Korea ($5.7 billion, up 34.4 per cent),  according to figures from the Ministry of Industry and Trade (MoIT).

Import turnover during the period was $82 billion, an increase of 23.9 per cent year-on-year. with China being the largest source (at $22 billion, up 15.7 per cent), followed by South Korea ($18.6 billion, up 51.9 per cent), ASEAN ($11.1 billion, up 16.6 per cent), Japan ($6.5 billion, up 15.5 per cent), the EU ($4.6 billion, up 13.9 per cent), and the US ($3.8 billion, up 22 per cent).

The country’s trade deficit in the first five months therefore stands at $2.7 billion, lower than the figure in the first four months, of $2.74 billion.

The shrinking deficit shows that the country’s efforts to work towards a trade balance are proving effective.

MoIT plans to tighten control on goods whose imports are discouraged and facilitate local manufacturing to cut the deficit.

Mr. Le Bien Cuong, Deputy Director of the ministry’s Mountainous and Frontier Trade Department, was quoted by local media as saying that in the first five months of the year, trade between Vietnam and its immediate neighbors, especially China, has seen high growth.

There are rising concerns, however, that an ongoing trade deficit over a period of months may harm the economy. In addition to export growth, imports of materials for production by local enterprises has also increased.

Mr. Thai Van Thi, Director of the Phu Tai Concrete Company, as quoted by the Vietnam News Agency, said the company has imported 50 per cent more materials year-on-year for concrete production and machinery due to a large number of orders.

Many economists believe the trade deficit is still within an acceptable level and is a normal occurrence for a developing economy like Vietnam, which is integrating more deeply into global trade and joining free trade agreements. Domestic production has also rebounded, driving imports.

MoIT will, however, use trade remedies against several imported goods to encourage the consumption of Made-in-Vietnam products to limit imports. It will also continue to diversify export products and markets to avoid any dependence on certain markets.

Hai Phong Sakura Golf Club given green light

The government has approved an investment project worth $41 million from Japan’s Tokyo LLC (under the T&K Group) to build the Hai Phong Sakura Golf Club.

Built on the area of 98 ha in Truong Thanh and An Tien communes, An Lao district, the golf course is a major project for the northern port city.

The 18-hole course will be of international standard, with a clubhouse on 4,000 sq m and a marina, which are expected to be completed and put into operation this year.

Tokyo LLC believes the area has great potential for tourism, recreation, and leisure activities, and the golf course will boost this potential.

The Ministry of Planning and Investment has been assigned to instruct and supervise the Hai Phong City People’s Committee during the building of the golf club.

The Ministry of Natural Resources and Environment will guide the investors on formulating, appraising, and approving reports on the evaluation of any environmental impacts.

The ministry will also coordinate with Hai Phong City People’s Committee and relevant agencies to inspect and supervise the meeting of regulations on environmental protection.  

The People’s Committee said the project will promote advantages in natural conditions and provide a sporting and entertainment area that serves the needs of residents from the city and surrounding areas.

Moreover, a golf course is a reasonable environment for domestic and foreign business to meet and talk, and it improves and protects the environment and contributes to developing infrastructure and the city’s investment environment.

HCMC to establish Project Development Fund

The Ho Chi Minh City People’s Committee has approved the establishment of a Project Development Fund (PDF).

The PDF will be established to research and prepare for public-private partnership (PPP) investment projects in the city. The city had 200 existing PPP projects as at March, with total investment of VND100 trillion ($4.4 billion).

Twenty PPP projects have completed contracting and are being implemented, with total investment of VND67 trillion ($2.94 billion), primarily in the field of transportation and the environment.

There are also 105 other projects in the process of studying and preparing proposals, selecting investors, negotiating the signing of project contracts, and securing investment registration, with total investment of VND356 trillion ($15.67 billion), in the fields of transportation, seaports, the environment, apartment blocks, urban upgrades, services, education, healthcare, culture, and sport.

The city also has some 100 PPP projects calling for investment, in transportation, the environment, healthcare, culture, and education, with investment totaling VND130 trillion ($5.7 billion).

Projects include the relocation of households living in District 8 (with investment estimated VND13 trillion ($572.19 million)), Provincial Road No.15 from Xang Bridge to Ben Nay Bridge (VND3.1 trillion ($136.4 million)), and a multi-functional training complex combined with a guesthouse for experts and hotels in District 11 (VND2 trillion ($88.03 million)).     

South Korean investment tops $50 billion

South Korean investments in Vietnam had surpassed $50 billion by the end of 2016, making it the largest foreign investor in the country, according to the Korean Trade Investment Promotion Agency (KOTRA).

The $50.5 billion invested by South Korean enterprises accounted for 30.8 per cent of all foreign direct investment in Vietnam, with 5,773 projects.

Seventy-one per cent of capital went to manufacturing and processing, following by real estate with 14.8 per cent and construction with 5.4 per cent.

Japan ranked second, with $42.4 billion in investment, then Singapore with $38.2 billion, Taiwan (China) with $31.8 billion, and the British Virgin Islands with $20.4 billion.

Many South Korean companies have arrived in Vietnam in recent times with the aim of taking advantage of its developing economy. A representative from KOTRA said that Vietnam’s economy is stable thanks to foreign investors pushing investments.

Bilateral trade between Vietnam and South Korea is expected to reach $70 billion by 2020 due to the Vietnam-South Korea Free Trade Agreement (VKFTA), which came into effect one year ago.  

From 2017, 18 items will be subject to tariff reductions under the VKFTA, with trade value between the two countries expected to increase and become more balanced as a result.

According to Mr. Le An Hai, Deputy Head of the Ministry of Industry and Trade’s Asian Market Department, based upon the commitments made in the VKFTA, in the years to come the two countries will improve both their economic and political relationship.

Vietnam is to focus on introducing preferential mechanisms for South Korea while South Korea will continue to open up its market to Vietnamese goods, according to Mr. Hai.

VNA/VNS/VOV/SGT/SGGP/TT/TN/Dantri/VNE