Central bank mulls loans for macadamia growing projects

The central bank will work out a proper lending policy for macadamia cultivation in Vietnam, especially in the Central Highlands region, said Nguyen Tien Dong, head of the central bank’s Credit Department.

Dong told a conference on macadamia development in the Central Highlands city of Dalat last week that the central bank would consider recapitalizing commercial banks to lend to macadamia farmers as has been done to tra fish farming and coffee projects.

To get financial support, Dong said macadamia growers need to make clear their investment plans for seedlings and areas under the nut tree. “It is important to develop a value chain to increase the value of the nut,” he noted.

LienvietPostbank has pledged a VND22-trillion credit package for farmers in the Central Highlands region to grow macadamia.

Nguyen Duc Huong, vice chairman of LienvietPostbank, said soil and weather in the Central Highlands region are ideal for macadamia cultivation but this is just in the nascent stage. This is why the bank funds farmers to grow this tree.

Truong Dinh Manh, secretary of the Party Committee of Tuy Duc District in Dak Nong Province, said capital is the biggest concern of local farmers as they have been provided with technical assistance to grow the tree in their coffee and pepper farms on a pilot basis.

Doan Le Duc, a farmer in Dak Nong Province, said in addition to capital, farmers are grappling with difficulties in securing seedlings. He added that a kilogram of fresh macadamia nuts is sold at US$5.5, which is nearly double the price of coffee.

Huong said LienvietPostbank has partnered with Him Lam Group to assist farmers in not only funding but also seedlings, fertilizer, production and consumption.

Duong Cong Minh, board chairman of Him Lam Group, said as farmers can earn profit from macadamia growing from the fifth year, they would be offered with loans of 10 to 15 years. The annual interest rate will be below 10% and loans will be disbursed in phases.

Huong said the group will call for investments in building a processing plant in the Central Highlands to ensure consumption for macadamia growers.

Vuong Dinh Hue, head of the Party Central Committee’s Economic Commission, said macadamia can develop well in the Northwest and the Central Highlands regions, but there has been no strategy for its sustainable development.

To support macadamia growers, the Government’s Decree 210/2013/ND-CP with effect on February 10 last year clarifies that farmers are provided with VND15 million for each hectare if they invested in at least 50 hectares of macadamia.

MHB fares well in 2014

Mekong Housing Bank, or MHB, reported higher-than-expected business results last year with its pre-tax profit growing 14% compared to a year earlier.

The bank obtained a credit growth rate of 14% and a 14.4% rise in deposits against the previous year. Its total assets rose by 17.4%, or five percentage points higher than last year’s target.

The ratio of service income/total earnings was seven percentage points higher than the year’s target. The bank curbed the non-performing loan (NPL) ratio at 2.72% while its Capital Adequacy Ratio (CAR) reached 16.95%.

Speaking at a review conference on 2014’s business performance and 2015’s plans in HCMC last month, Nguyen Phuoc Hoa, general director of MHB, said that despite being a medium-sized commercial bank, MHB is one of the lenders with safe and effective operations. Especially, MHB has strictly followed asset quality classification rules by the central bank.

Many individuals and teams of MHB at the event were also rewarded by the Government and the State Bank of Vietnam for their contributions in 2014.

Work starts on expansion of Da Nhim power plant in Ninh Thuan

The Power Generation Company 1 and Da Nhim-Ham Thuan-Da Mi Hydropower JSC last week began expansion of the Da Nhim hydroelectric power plant in Ninh Thuan province.

Under the expansion project, a turbine with a capacity of 80MW will be added to the Da Nhim plant, raising the total capacity of the plant from 160MW to 240MW.

In addition, the expanded plant will be equipped with new supporting facilities including an intake gate, a 5km pressure tunnel, a surge tank, and a 2km penstock among others.

The expansion project requires an investment of over VND1.9 trillion (US$89.3 million) including VND300 billion from the investor Da Nhim-Ham Thuan-Da Mi Hydropower JSC and the remaining from the Japanese Government's loans.

The project is scheduled for completion in the first quarter of 2018 which will generate an additional 100 million kWh of electricity each year, contributing to the socio-economic development of Ninh Thuan province and providing more water for agricultural production in the dry season.

PV Gas targets VND70 trillion revenue

PetroVietnam Gas Joint Stock Corporation (PV Gas) is expected to earn more than VND69.5 trillion (US$3.25 billion) in revenue and over VND11.5 trillion in pre-tax profit this year.

These are the targets set by PV Gas’s parent company, Vietnam National Oil and Gas Group (PetroVietnam), based on the global crude oil price of US$100 per barrel, Le Nhu Linh, chairman of PV Gas, told reporters on February 9.

However, the oil price has dived on global markets, so the targets may be adjusted in near future.

Linh said the plunging oil price has yet to leave big impact on PV Gas’s revenue because the company only produces and trades in a few products related to crude oil, and its business operations mostly involve long-term contracts.

This year, PV Gas will raise its chartered capital to have funding for new investment projects as outlined in its business development strategy, he said, adding his company is consulting relevant ministries over a specific figure and a schedule for its capital increase.

The PV Gas chairman also revealed at the press conference that PetroVietnam is considering lowering its share holding at PV Gas, giving its subsidiary an opportunity to find foreign strategic investors.

PV Gas has met several foreign partners who can fulfill the company’s requirements for having experience in managing gas exploration technologies and having gas resources outside Vietnam.

Last year, PV Gas posted revenue of over VND73.5 trillion, 18% higher than targeted, and profit of VND17.9 trillion.

* PetroVietnam Gas Corporation (PV Gas) has broken ground for a gas processing plant with a daily capacity of 6.2 million cubic meters and  an investment of nearly VND10 trillion in the Mekong Delta province of Ca Mau.

The plant project comprises an offshore 37-kilometer pipeline aimed to raise the daily gas transmission capacity of the PM3-Ca Mau pipeline from 5.8 million cubic meters to over 6.9 million cubic meters to meet the demand of businesses at the Ca Mau Gas-Power-Fertilizer Complex.

Other components of the project are a warehouse with a storage capacity of 8,000 tons of liquefied petroleum gas (LPG) and 3,000 cubic meters of condensate, and a facility to produce liquid products at Khanh An Industrial Park in U Minh District, Ca Mau Province.

The plant will be commissioned at the end of next year after 23 months of construction to serve customers in the southwest region and other parts of the country. It will also help ensure national energy security, create more jobs for locals and increase State budget collections for the region, especially Ca Mau Province.

The PM3-Ca Mau pipeline is part of the Ca Mau Gas-Power-Fertilizer Complex and is implemented to boost economic development in the southwest region.

Modern technology will applied to improve its total gas transmission capacity to over six million cubic meters per day for two electricity facilities with a combined capacity of 1,500 MW and a urea plant with a capacity of 800,000 tons of urea per year.

As of the end of last year, PV Gas Ca Mau Company supplied over 10.8 billion cubic meters of gas via the pipeline for Ca Mau 1 and 2 plants and a urea plant to produce over 2,000 tons of urea and 50 billion KWh of electricity, accounting for 7% of electricity output and 40% of urea output nationwide.

PV GAS is supplying nearly 35% of electricity, 70% of fertilizer and over 70% of liquefied petroleum gas to domestic businesses and households. Since 1995, the corporation has contributed over VND425 trillion to revenue of the local oil and gas sector.

Tilapia offers untapped potential for exports

Vietnam’s tilapia exports to foreign markets have enjoyed strong growth over recent years steadily increasing from an export volume of just US$1.95 million in 2004 to more than US$32.2 million in 2014.

Last year, the total area of tilapia aquaculture at ponds and lakes nationwide spanned 15,992 hectares with total output spiking up over 25% to 125,000 tonnes compared against the prior year.

Tilapia now has become a key aquatic product for consumers in both the domestic and foreign markets. Last year, Vietnam exported tilapia to more than 60 nations around the globe.

The top ten import markets of Vietnam’s tilapia included the US, UKSpain, Columbia,  the Netherlands, Belgium, Germany, Mexico, , Czech Republic and Italy.

The US remained the key market for tilapia at 1.745 tonnes valued at US$5.241 million, accounting for 18.2% of the country’s total market share, trailed by Spain and Colombia.

However, Vietnam’s tilapia exports have remained relatively low in relation to their potential, according to the Directorate of Fisheries.

Ten years ago, the Ministry of Agriculture and Rural Development (MARD) began implementing a project to develop tilapia as a key aquatic export. However, tilapia output has not expanded as anticipated and hasn’t kept pace with domestic demand. Moreover international marketing efforts have been stagnate as the industry, fraught with raw material shortages and lack of investment funds, simply isn’t in any position to make or keep large foreign commitments

China and Taiwan have now become the world’s leading tilapia exporters with an export volume in excess of US$1.3 billion per year, buoyed by the export price of tilapia in the US market, which has been hovering at between US$3.8 and US$4.2 over the past year.

In Vietnam, with tra fish exports having encountered innumerable difficulties, the diversification of aquatic exports has become urgent. Especially, since tilapia has a great potential as a seafood export.

Many developing nations have considered tra fish an important source of protein in and it has been one of top ten seafood products in the US market, just after shrimp and salmon.

The MARD has now forecasted that tilapia exports could reach 21,000 hectares with an output of 140,000 tonnes including 50,000 tonnes for exports in 2015.

Apart from tra fish and shrimp exports, Vietnam has been striving to transform tilapia into one of its key exports with an output reaching 150,000 tonnes and export value of US$200 million-US$300 million by 2020.

Demand for processed products, confectionary surges before Tet

Deputy Director General of Saigon Food Joint Stock Company Nguyen Thi Thanh Lam told Tuoi Tre (Youth) newspaper that the company has had to increase production by 10 per cent of processed seafood products such as dried cuttlefish and dried fish strips to meet the consumer demand.

The company's distribution system has nearly run out of these products, she added.

"The consumption of these products has increased beyond our expectations," Lam said.

The company plans to market 550 tonnes of processed products for Tet, a year-on-year increase of 10 per cent.

Truong Chi Thien, director of the Vinh Thanh Dat Company, said that the sale of egg products has increased by 10 per cent in comparison with last week.

The company has readied seven to eight million eggs as supply for Tet, a year-on-year rise of 15 to 20 per cent, he said.

Meanwhile, Deputy General Director of confectioner Bibica Corporation Phan Van Thien said that the company has achieved a consumption target of 1,400 tonnes of confectionary for this year's Tet, a nearly 15-per-cent rise compared with last year's Tet.

"The company is producing an additional 10 per cent of confectionaries of different kinds to meet the consumer orders, because the demand has increased unexpectedly," he said.

The price of chicken is increasing rapidly in the capital as demand surges before Tet.

Chickens, one of the most important offerings on traditional Vietnamese altars during Tet, cost 20 to 30 per cent more than on regular days. At Hom Market in Hai Ba Trung District, chickens sold for VND180,000 (US$8.5) per kg, an extra VND40,000 ($2).

Nguyen Thi Lan, a vendor at Cau Giay Market, told Tien Phong (Vanguard) newspaper that the chicken price had been rising since the beginning of February.

"After Wednesday [Kitchen Gods' Day], the price might increase every day," she said.

Customers tended to store food before Tet as they were afraid that food providers would fail to meet demand, causing prices to increase, according to Ha Noi Supermarket Association Chairman Vu Vinh Phu.

A vendor at Ngoc Ha Market acknowledged that many of her customers had already booked chickens, especially breeds used for offerings, as they feared there would not be enough chickens for the holiday.

The surging price, however, does not benefit the sellers any more than it does the customers.

Tran Hop, a chicken vendor at Hom Market, complained about the high price of the poultry even when she bought directly from farmers.

"It is very hard now to collect the chickens from the farmers. Despite selling many, my profit is somehow little," she said.

Animal Husbandry Association of Viet Nam president Nguyen Dang Vang said that the increasing price of the chicken was nothing compared to the rising cost of farming-related products, such as poultry feed, which began a long time before Tet.

"This increasing chicken price cannot provide much profit for farmers," he said.

Rising meat consumption attracts big names to expo

The biennial Food & Hotel Viet Nam, the country's leading international food and hospitality trade show to be held in April, has attracted big-name meat exporters from around the world wanting to tap this growing market.

The Union of Producers and Employers of Meat Industry from Poland, the U.S. Meat Export Federation (USMEF), and many from Australia and Spain are among those to have confirmed their presence.

Local meat importers Vina Siam Food and New Viet Diary will also add to the show's prominent meat suppliers. The exhibition is held by the Singapore Exhibition Services Pte Ltd together with local organiser VCCI Exhibition Service Co Ltd.

Sabrina Yin, ASEAN Director, U.S. Meat Export Federation (USMEF), said: "Viet Nam is one of our target markets in recent years due to its strong development and demand. In recent months we have seen increasing demand for imported beef in Viet Nam, driven in large part by expansion in the family dining restaurant sector.

"Viet Nam is also a participant in the Trans-Pacific Partnership negotiations, which could serve as a path to improved access for US beef. We are striving to connect with this potential market, and Food & Hotel Viet Nam 2015 is a chance for us to do so."

Eric Alcolea, export manager of Explotaciones Hermanos Delgado of Spain, said: "This year is the first time we are exhibiting at Food & Hotel Viet Nam. We strongly believe in this event as a valuable and trustworthy channel for us to reach our customers."

Food & Hotel Viet Nam will be held from April 21 to 23 at the Saigon Exhibition & Convention Centre.

Viet Nam has surpassed China to become the second-largest importer of Australian cattle, and retail stores across the southern metropolis have been replacing domestic beef with Australian meat over the last year.

In June last year Viet Nam also opened its doors to Japanese beef, enabling more than 20 meat exporters in Japan to sell their famed Kobe beef to the country.

Nearly US$3.3 million worth of meat imports from the EU also arrived in Viet Nam in the first three quarters of last year, seven times the amount imported in the same period of 2013, according to the General Department of Viet Nam Customs.

In the first nine months of last year Viet Nam imported more than $85 million worth of frozen meats from 19 markets, up $12 million from the same period in 2013.

Dragon Capital buying up PDR stocks

According to information from the Vietnam Stock Depository, two funds under Dragon Capital, Vietnam Enterprise Investments Ltd. (VEIL) and Amersham Industries Ltd. (Vietnam Growth Fund) purchased 10 million Phat Dat Real Estate Development Corporation (PDR) shares on Feb 5.

On February 5, seven million PDR shares were transferred to VEIL and the remaining stocks were transferred to Vietnam Growth Fund from Nguyen Thi Dieu Hien, PDR chairman Nguyen Van Dat’s wife.

Given that PDR market shares are traded at around VND16,700 ($0.78) per unit at present, the total value of the deal is worth approximately VND170 billion ($7.94 million). By estimation based on this value, the said number of shares is equivalent to 7.7 per cent of PDR stocks.

Earlier on, Hien was registered to sell 11 out of her 19.2 million PDR shares as part of her investment portfolio restructuring. Meanwhile, her husband Dat, also the biggest shareholder at PDR, owns 76.8 million shares which represent 59 per cent of the company’s chartered capital.

Dat has currently registered to buy an additional one million PDR shares and the company plans to boost its capital from VND1.302 trillion ($60.84 million) to VND2.018 trillion ($94.3 million) via a five per cent dividend payout as additional share issuance and offering existing shareholders an attractive 2:1 ratio to purchase additional shares issued at the par value of VND10,000 ($0.47) per share.

PDR’s liquidity has grown dramatically in recent years, with average trading volume reaching 200,000 transactions a day.

Government agrees upgrades for cement factories

The Government has approved the Ministry of Construction's proposal to increase the capacity of two cement projects in northern Ha Nam and central Nghe An provinces.

Thanh Liem Cement Factory in northern Ha Nam province's Bong Lang commune will be upgraded with one more production line with the annual capacity of 2.3 million tonnes. The second line is expected to open in 2018.

Currently, the factory has only one production line with the capacity of 450,000 tonnes.

Song Lam Cement Project, located in central Nghe An Province's Bai Son commune, will also be upgraded with the capacity of 4 million tonnes.

Construction on the factory began last week with investment capital of 10.5 trillion VND (493.5 million USD). Three production lines will be built by 2020. The first two are scheduled to be put into operation in 2017.

Nguyen Quang Bay, director of Thanh Liem Cement Factory, said that it was necessary to increase the capacity of the factory in order to fully exploit limestone resources in the province.

The Prime Minister assigned the Construction Ministry to work with relevant ministries and sectors to use domestic building materials and workers for these projects.

He also asked the ministry to re-examine cement factory projects in the 2011-20 period and forecast market demand, then report it to the Government later this year.

Cement consumption reached 5.87 million tonnes in the first month of 2015, an increase of 30 percent compared to the same period of last year, according to the Construction Ministry's Building Material Department.

Domestic cement production currently meets demand, according to the department. The country currently has 74 cement production lines with output of 77 million tonnes per year.

The Vietnam Cement Association predicts that cement exports this year could earn as much as 1 billion USD via the export of 20-21 million tonnes of cement and clinker, a 15 percent increase in value year-on-year.

Vietnam sees expanding job pool for its overseas workers

Officials from the Ministry of Labour, Invalid and Social Affairs are exploring expanding markets for Vietnamese working overseas, with 10,000 headed for mainly Taiwan and Japan to gain employment and experience in sectors ranging from construction, engineering and agriculture to food processing and garments and textiles.

The ministry’s Overseas Labourer Management Department said 106,840 workers went overseas last year, with Taiwan taking 62,000.

Department director Tong Hai Nam said growing demand for domestic labour by Thailand, Indonesia and the Philippines had curbed the available overseas worker pool in those countries, offering "a great chance for Vietnamese workers” to fill vacancies, with average earnings of VND10-15m a month in Taiwan jobs.

"Taiwan labour demand is on the rise," Nam said.

Deputy minister Nguyen Thanh Hoa, said the ministry was seeing strong demand growth for Vietnamese workers and "will focus on administrative reform" to send more workers abroad.

Nguyen Ngoc Quynh, the director of the department, said demand in the Japanese market has sharpening on highly skilled trainees from Vietnam working in fields such as design, engineering and nursing, and offering average monthly wages of VND34-40m.

Hoa, said the ministry wanted this year to find more markets with higher incomes for local workers in Taiwan, Japan and South Korea, and was continuing to negotiate with Thailand, Angola, Laos, Russia, Belarus and Germany to take more workers.

Nam said workers going to fellow Asean member-countries could access eight fields -- accounting, architecture, dentistry, medicine, nursing, engineering, transportation and tourism.

ASEAN women entrepreneurs to gather in Hanoi

Female entrepreneurs and business leaders from throughout ASEAN will gather in Hanoi this March 6-7 for a forum aiming to promote the role of women in economic and trade activities in the region.

The dynamic programme is being organised by the ASEAN Women Entrepreneurs Network (AWEN) in collaboration with the Vietnam Women Entrepreneurs Council (VWEC).

VWEC chairperson Nguyen Thi Tuyet Minh said the event aims to help women network to better promote their role in the business world and in being held in celebration of the 105th International Women’s Day.

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