Smart phone consumption highly grows in Vietnam

According to a survey by International Data Corporation (IDC), 28.7 million cell phones were sold in Vietnamese market last year, an increase of 13 percent over the previous year.

Of these, smart phones posted the highest growth rate of 57 percent with 11.6 million ones sold last year.

Owning to quick price reduction, the consumption ratio of this phone line has run up to account for 41 percent of Vietnam’s cell phone market share. Six out of ten smart phones in the country are priced below US$150. The number is forecast to continue extending this year.

The segment of low-cost smart phones has been the main driver for cell phone industry’s growth, according to IDC.

Samsung still takes the lead in this segment occupying 26 percent of the market share, followed by Nokia with 24 percent.

Payment caps proposed for foreign-investment housing projects

Investors of foreign-investment housing projects, who have not handed over the units to the buyers, will not be allowed to collect more than half of the apartment's value.

This is part of a draft regulation of the construction ministry - prepared on the basis of the law on the real estate business – that is now inviting public opinion.

Under the draft, the payments for renting or buying apartments in future real estate projects can be made several times, but the first payment cannot exceed 30 per cent of the contract's value.

The payments that follow must be made in line with the progress of the project's construction, and must not surpass 70 per cent of the contract's value if the apartments have not been handed over to buyers.

In case the home buyers have not been granted land or house ownership certificates, the investors will not be allowed to collect more than 95 per cent of the contract value from them.

The remaining fee will be paid by buyers after they get the land or house ownership certificates from authorised agencies, according to the draft.

According to the planning and investment ministry, the real estate sector attracted US$2.54 billion in foreign direct investment (FDI) last year, accounting for 12.6 per cent of the country's total registered FDI capital.

Four-star hotel to be built in Ly Son

The Muong Thanh Hotel Group will build a four-star hotel on Ly Son Island, 30km off the coast of the central province, as part of its 2020 tourism development plan.

Ly Son Island, off the coast of central Quang Ngai Province, is favourite tourism site in Viet Nam. The Muong Thanh Group plans to build the first four-star hotel in the Island as part of tourism development. VNS Photo Cong Thanh

The group's Deputy General Director Le Dinh Dong said that the VND200-billion (US$9.5 million) project is scheduled to start this year.

The seven-storey four-star hotel will have 150 rooms to accommodate tourists.

"It is part of our strategy to boost tourism on the island, as guest houses and home-stay services cannot provide enough good accommodation for 3,000 visitors in the high season," Dong said.   

"The group conducted a survey last year and all preparations for investment projects have been revved up," he added.

The group manages a chain of 30 hotels in Viet Nam.

The island's hospitality service, with 18 hotels, guest houses and home-stays, can provide accommodation to only 1,000 tourists at present.

Last year, the central province listed 16 priority projects for the island district's socio-economic development, with a total investment capital of VND2.3 trillion (US$110 million).

The island, which is connected with Quang Ngai Province's Sa Ky Port by high-speed boats, is often overcrowded with tourists during summer holidays.

Ly Son Island, a tranquil destination 30km off the province's coast, is home to about 21,000 residents. Most make a living from fishing and by cultivating garlic and spring onions.

The Da Nang-based Tien Sa taxi firm was the first public transport agency on the island.

Golf course built with state money, then left idle in central Vietnam

Authorities in the central Vietnamese city of Da Nang spent US$1.26 million on building a golf course for two years, which has been left desolate since 2014 given a lack of equipment, a move that triggers many local residents to consider it a wasteful investment.

Work started on the course on June 14, 2012 and it was completed and handed over to its developer, the Da Nang City Department of Culture, Sports, and Culture, on August 21, 2014, Nguyen Huu Hinh, head of the Da Nang City Management Board for Construction Projects, has told Tuoi Tre (Youth) newspaper.

But the course has still not been put into operation as it lacks equipment for playing golf, Hinh said, adding that a bid has just been opened to procure such equipment.

It is expected that the golf course will come on stream in April this year, Nguyen Phuc Linh, deputy director of the sports department, said.

The course is now covered with grass and many components of the facility have shown signs of damage and deterioration, as seen by Tuoi Tre reporters.

The project, which was funded by the state coffers, was approved by the local People’s Committee in April 2012 and the Da Nang Infrastructure Construction and Development One-Member Co. Ltd. won a bid to build the course at an initially estimated cost of VND18.6 billion ($871,500).

During the construction process, the capital was adjusted to top VND27 billion ($1.26 million).

The course is part of the 19ha land that was earmarked in 2004 for another project to build a park. However, no park has ever been developed since.

Therefore, many residents have wondered that while there are not enough playgrounds for young people, why the authorities turned part of the land into a golf course that most locals do not need.

Many have asked the same question, “For whom was the golf course built?”

They questioned that why the Da Nang authorities used the budget contributed by taxpayers to build a sporting facility that only serves a minority of wealthy people.

Locals also pointed out that besides the golf course, the city also has another course constructed by a foreign investor and it has suffered losses for a long time.

P. H., who manages the foreign-invested course, said only 40-50 players, most of whom are rich people, use the facility per month.

As a result, the course has made a loss over the past several years, H. said, adding that its owners want to sell it but have failed to seek a buyer.

It is wasteful for authorities to spend taxpayers’ money building a golf course, as most locals have no demand for it, H. concluded.

Asked by Tuoi Tre about whether the locally invested golf course can maintain its activities while its foreign-invested counterpart is going belly up, Linh, of the sports department, said on Monday, “The foreign course, invested by a South Korean firm, is for commercial goals only, while ours serves both business and training purposes.

The country has organized many golf tournaments so if golfers in Da Nang want to take part in such contests, they need to have a course for practice, Linh explained.

15 banks offer online tax payment service

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

BIDV is one of the first five local banks offering online tax payment services. More 15 commercial banks will offer the service after signing a cooperative agreement with the General Department of Taxation on March 10. Photo baohaiquan.vn

These include the An Binh Commercial Joint Stock Bank (ABBANK), the Maritime Commercial Joint Stock Bank of Vietnam (Maritime Bank) and the Saigon Commercial Bank (SCB).

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

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

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

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

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

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

FLC Samson Resort to be inaugurated in May

FLC Group's Samson Beach and Golf Resort in the central Thanh Hoa Province will open by the beginning of May to welcome the National Tourism Year 2015 in the area.

The group will inaugurate a 1,300-seat convention centre, an 18-hole golf course designed by Nicklaus, the five-star Fusion Resort Samson with 83 rooms and the four-star Alacarte Samson Hotel with seven floors and 200 bungalows.

FLC Chairman Trinh Van Quyet told a press tour held over the weekend that they have enough money for the more than VND5.5-trillion (US$257 billion) project, though several large banks are ready to lend money for the major project. "Vietinbank has committed to lend about VND1 trillion ($46.7 billion) for the project. However, we do not need a loan at the moment. The loan will be used for other projects," Quyet said.

He added that the group has rushed to speed up its project's progress as he expects the property market to improve this year.

"FLC wants to take advantage of the opportunity. I can give an example. If the project's progress is slow, we could lose a turnover of VND3 billion ($140,000) a day or VND1.2 trillion ($56 billion) a year," he said.

That is the reason why the group has mobilised up to 3,000 workers to work 24/7 for the project.

Answering the question whether the hurry could affect the construction's quality, the chairman said that there will be no such situation as they have hired a foreign company to supervise the construction quality.

In addition, if the project's quality is not good, we will suffer losses, he pointed out.

About 1,000 villas will be offered for sale after all construction work is completed. The group will not sell anything if the infrastructure development is not complete.

The province's local authorities said that the project has made rapid progress as it completed a great amount of work of receiving a licence, land clearance and construction in only nine months.

The project is expected to be a breath of fresh air for the Samson tourism area, contributing to attracting foreign investors to the province. It has also created jobs for thousands of local people, and is likely to contribute significantly to the provincial budget.

Vingroup sticks oar into port deal

Vietnam’s leading property developer Vingroup seems to know no limits to its talents as evidenced by the proposal  it sent to the Ministry of Transport, seeking to buy into the country’s seaport operations.

Vingroup is keen to become a strategic partner in the Saigon Port Company Ltd, and Haiphong Port JSC currently owned by state-run Vinalines.

The developer has proposed buying a stake of up to 80 per cent in Haiphong Port at a price not lower than the average auction price.

Vingroup has also proposed to buy an 80 per cent stake at a price not lower than the initial public offering (IPO) in Saigon Port, and has demanded the right to partake in the company’s equitisation plan.

Haiphong Port JSC was equitised in 2014, with VND3.26 trillion ($152 million) in chartered capital, and Vinalines holding a 94.6 per cent stake.

Last year, the port reported total throughput cargo volumes of 19.7 million tonnes, earning VND1.57 trillion ($73.6 million) in revenue and VND397 billion ($18.5 million) in profits.

Meanwhile, Saigon Port’s enterprise value was set at VND3.99 trillion ($186 million) at the start of 2014. Of this, state equity was VND2.16 trillion ($101 million). Saigon Port will be equitised in the first quarter of this year. However, the state still want to retain a 75 per cent stake.

In its document to the MoT, Vingroup CEO Duong Thi Mai Hoa claimed that the group would apply the latest management models in the operation and management of these two major ports to bolster business efficiency.

Apart from being trusted with the development of Nha Trang Port in the south-central province of Khanh Hoa, a subsidiary under Vingroup has also applied to build a passenger dock on Phu Quoc Island in the southern coastal province of Kien Giang.

Vingroup was also rumoured to be the single investor hoping to buy Phu Quoc International Airport.

To win a stake in Haiphong Port, Vingroup would need to compete head-on with the Vietnam-Oman Investment JSC (VOI) belonging to Oman’s sovereign wealth fund SGRF. The Middle East investor had sent a proposal to the Vietnamese government asking to acquire 29.68 per cent stake in Haiphong Port under a negotiated price scheme.

In the case of Saigon Port, if Vingroup was chosen to become the port’s strategic partner, parent company Vinalines would need to revise its resolution on selecting strategic partners as the Vinalines’ Member Council, which earlier regulated that Saigon Port’s strategic partners must operate in fields other than Vingroup’s core lines.

Airports up for sale

Vietnam Airlines and VietJet have both made proposals to acquire all or some parts of Hanoi’s Noi Bai International Airport’s Terminal 1. Industry-watchers claim the move underlines the growing market for private investment in the country’s aviation sector.

The carriers’ rival proposals to the Ministry of Transport follow a government announcement late last month that it would sell the rights to operate Phu Quoc International Airport, and planned to equitise the Airport Corporation of Vietnam – the only airport developer and operator in the country.

The idea to allow private companies to manage civil airports or terminals was initially proposed by the Civil Aviation Administration of Vietnam (CAAV) two years ago.

In addition to Phu Quoc International Airport, CAAV general director Lai Xuan Thanh said the authority would complete a shortlist of airports calling for private investment within this month, including the sale of Terminal 1 at Noi Bai International Airport.

“Many investors are interested in aviation infrastructure because of the rapid growth of the Vietnamese aviation market,” said Thanh, citing VietJet and Vietnam Airlines’ proposals as a positive start.

He added the authority would meet investors in coming time to further discuss potential transactions.

While VietJet wants to have the right to operate Lobby E at Terminal 1, Noi Bai Airport, for 20 years, Vietnam Airlines wants to acquire the entire terminal. Both carriers believe the investment would ensure a sustainable growth for their business.

According to the CAAV, the opportunity for investors is huge as the government is planning to encourage private investment in the expansion of airports such as Cam Ranh and Danang.

Vietnam has 21 operating airports at present. Five more airports are planned to become operational by 2020, raising   the total airport number to 26. All the airports are now under the management of the state.

Last year, Rang Dong Company became the first private investor to enter Vietnam’s aviation infrastructure market, by building Phan Thiet Airport in Binh Thuan province.

Leading property developer, the Sun Group is planning to invest in Van Don Airport in Quang Ninh province. The domestic airport will help boost tourism at the UNESCO-recognised world natural heritage site at Ha Long Bay. According to Quang Ninh People’s Committee, airport construction could start this April.

During the past decade some foreign investors have expressed interest in investing in airport projects, however none received investment licences. US-based ADC-HAS Airports proposed to invest into seven airports in the central region in 2011 under public-private partnership form, including Chu Lai, Phu Bai, Danang, Tuy Hoa, Quy Nhon, Pleiku and Cam Ranh airport. Singapore’s Changi Airports International wanted to invest in Phu Bai airport, while another US-based Airis Holdings also wanted to invest in airport projects in Vietnam.

Thanh said the lack of a legal framework was a barrier hindering private investors from investing in aviation infrastructure during the past time. But this obstacle would be removed after the CAAV reviewed the legal framework.

Mong Duong 2’s first unit enters commercial operation ahead of schedule

AES-VCM Mong Duong Power Company Limited today announced that the 621 megawatt Unit 1 of the Mong Duong 2 coal-fired power project, known as the currently largest build-operate-transfer coal-fired power plant in Vietnam, has entered commercial operations on March 4, ahead of schedule.  

Mong Duong 2, with two units and the total gross capacity of 1,242 MW, has been in construction in the northern province of Quang Ninh since December 2010. The total investment for the project is approximately $2.1 billion. The power plant has worked over 42.5 million man-hours and continues to progress very well with an average of 2,500 people still supporting the remaining portions of the project every day.

After completion of construction and commissioning activities of the entire power facility in the second half of 2015, Mong Duong II is forecasted to produce more than 7.6 billion kWh of electricity annually. The project will supply electricity to Vietnam’s state-owned company Electricity of Vietnam (EVN), under the terms of a 25-year power purchase agreement.   

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

AES Mong Duong, owner of Mong Duong 2, is a limited liability company formed by the affiliates of the US’s The AES Corporation, Korea’s Posco Energy and China Investment Corporation, with The AES Corporation as the largest shareholder.

Vietnam’s new tourism island to have more high-speed boat services

A new high-speed boat operator is slated to increase the number of vessels bringing tourists to Ly Son Island off central Vietnam to nine vehicles, at a time when supply is falling short of demand.

The first vessel operated by Thai Binh Duong Co. docked at the island administered by Quang Ngai Province on Monday, and will soon be joined by four others, company director Duong Hong Huong told Tuoi Tre (Youth) newspaper the same day.

The Greenlines-A1, equipped with two 400hp engines, is capable of carrying 60 passengers and traveling at a speed of 25 to 28 nautical miles per hour. (1 nautical mile = 1.85 kilometers)

Thai Binh Duong Co. is completing necessary paperwork to have the ship operate on the Ly Son-Sa Ky Port, and Lon (Big) Island and Nho (Small) Island services, Huong said.

Sa Ky Port is located within the Dung Quat Economic Zone in Quang Ngai, around 750km northeast of Ho Chi Minh City.

Greenlines-A1 is the first out of five high-speed boats Thai Binh Duong is building for the Ly Son service.

Two of the remaining vessels are capable of serving 150 and 40 passengers, respectively, whereas the two others are rigid-hulled inflatable boats (RHIB) with a maximum capacity of 16 people.

A RHIB is a lightweight but high-performance and high-capacity boat constructed with a solid, shaped hull and flexible tubes at the gunwale.

All of the boats have a design speed between 30 and 35 nautical miles per hour.

“We will serve local people and tourists with a modern mechanism in which tickets will be sold via an online system,” Hoang said.

There are currently four high-speed boats with a total capacity of 650 passengers to bring vacationers to Ly Son Island.

The modest supply of ships is incapable of meeting the huge demand of people who want to experience the idyll atmosphere of Ly Son, especially during major public holidays.

The ships were overloaded and hotels on the island were fully booked during the latest occasion, International Women’s Day, when many chose to travel.

Ly Son Island, about 25km off Quang Ngai’s mainland, is known as a major offshore fishing center and for having a special variety of garlic named mo coi (orphaned).

The island has begun to develop its tourist industry over the last few years and has since emerged as a favorite location for ecotourism.

The infrastructure on Ly Son has thus been improved, with the island being connected to the national grid via a submarine cable system in September last year, while a taxi operator in the central city of Da Nang also sent nine cabs to the island last month.

Hoa Phat to break into agriculture

Hoa Phat Trade and Production of Feed Company, a subsidiary of Vietnam’s leading steel maker Hoa Phat Group, will start its operation officially in the first haft of this year.

Located at the Pho Noi A Industrial Park in the northern province of Hung Yen, the factory has the total chartered capital of VND300 billion ($14.3 million) and the capacity of producing 300,000 tonnes of animal feed per year. The revenue target is the expected amount of VND3 trillion ($140 million) to be collected in the course of the next three years.

According to Hoa Phat’s representative, beside the key steel sector, expansion to the agricultural sector will form the backbone of the group’s long-term strategy, elevating it to primary importance and providing focus in both human resources and financing activities.

Being a tycoon in trading furniture, steel and property in Vietnam, Hoa Phat currently is encroaching on agriculture, including the breeding of pigs and poultry, processing animal feed, the production of fertilisers and nitrogen compounds and trading agricultural equipment.

In 2014, Hoa Phat’s total revenue hit VND25.5 trillion ($1.2 billion) with the post-tax profit of VND 3.25 trillion ($151.6 million), an increase of 35 per cent and 62 per cent on year, respectively.

In the 2015 financial year, the group’s revenue is forecasted to reach to VND22.5 trillion ($1.05 billion) with the post-tax profit of VND2.3 trillion ($107.3 million).

New IHI factory in Haiphong

March 10 marked the official start of operations for the IHI Infrastructure Asia (IIA) steel structure factory, owned by Japan-based heavy industry group IHI Corporation, in the Dinh Vu Industrial Zone in the port city of Haiphong.

The $34 million 140,000 square-metre factory will produce 9,000 tonnes of steel structures upon reaching its full capacity by the end of this year. It is going to be a new hub of production of steel structures for bridges, equipment for thermal power plants and other construction machinery that serve projects in Vietnam as well as other countries.

“With the inauguration of the factory, IHI will be able to respond to the local demand of high quality steel structure for infrastructure development and other purposes,” said Sadao Degawa, executive vice president and senior executive officer at IHI Corporation.

IHI Corporation has been present in Vietnam since 2008. It has been involved in multiple infrastructure projects in the country such as the construction of the Nhat Tan Bridge in Hanoi and the rebuilding and reconstruction/renovation of the Binh Bridge in Haiphong and is now part of the project to build the Hanoi-Ho Chi Minh City Railway Line Bridge.

PM approves Lang Son-Hanoi-HCMC-Moc Bai economic corridor plan

Prime Minister Nguyen Tan Dung has approved the master plan for the Lang Son-Hanoi-HCMC-Moc Bai economic corridor towards 2020 with a vision reaching 2030.

The new economic corridor linking localities of Lang Son-Hanoi-HCMC- Moc Bai will be developed with the aim of creating a fundamental framework for national territorial organisation, especially in regards to developing the national infrastructure system, according to the Government website.

The formation of this economic corridor is designed to promote socio-economic development in localities along the corridor, producing a spillover effect boosting development in other localities throughout the country.

The Lang Son-Hanoi-HCMC- Moc Bai corridor is expected to generate revenues of approximately US$200-220 billion by 2020, accounting for 70% of North-South goods transport volume and 46% of the marine shipping volume.

The corridor aims to attract around 9-9.5 million international visitors and 40-41 million domestic visitors with total revenues estimated at US$15-16 billion.

Trade value along the Lang Son-Hanoi-HCMC-Moc Bai economic corridor is forecasted to account for 40% of retail sales and 85% of the total North-South trade value.

According to the Government website, priority tasks will include transport infrastructure development, infrastructure in economic zones, high-quality training, scientific and technological research and administrative reforms.

Agribank lends VND1 trillion to hydropower project

Vietnam Bank for Agriculture and Rural Development, or Agribank, has clinched a contract to lend over VND1 trillion to Vietnam Urban & Industrial Zone Development Investment Corp. (IDICO) to develop a hydropower project.

According to Vietnamplus, the Dak Mi 3 hydropower project belongs to a major hydropower development plan on the Vu Gia-Thu Bon River in Quang Nam Province.

IDICO started work on the project early last year and expects to finish construction work in late 2016. The project has total capital of over VND1.5 trillion.

Once put into operation, the project will provide around 220.5 million KWh of electricity to the national grid a year.

Earlier, Agribank also funded the Dak Mi 4 project which started construction in 2007. The project began power generation in 2012, with 752 million KWh supplied for the national grid a year.

More investors want to buy airports

More companies have joined the queue to buy the operation rights to a number of airports in Vietnam after the Ministry of Transport floated a major plan to open aviation projects to the private sector.

Most recently, Hanoi-based T&T Group Joint Stock Company has written to the Ministry of Transport proposing buying the entire Phu Quoc International Airport or the operation rights to this airport on Phu Quoc Island off mainland Kien Giang Province. The firm said it would upgrade the airport and not transfer it in the first five years if it is chosen.

Lai Xuan Thanh, director general of the Civil Aviation Authority of Vietnam (CAAV), said as Phu Quoc airport was mainly built with funding from Airports Corporation of Vietnam (ACV), the sale of the operation rights is feasible.

Phu Quoc airport was developed at a cost of VND3 trillion and officially put into service on December 15, 2012.

The airport meeting 4E standards of the International Civil Aviation Organization (ICAO) can handle long-range, wide-body aircraft like Boeing 777-300, Boeing 747-400 and Airbus A380-800.

Less than one month after the ministry unveiled the scheme to sell the operation rights to Phu Quoc airport and part of Noi Bai airport’s Terminal 1 (T1), three investors have expressed interest.

Both VietJetAir and Vietnam Airlines are seeking to operate T1 at Noi Bai airport in Hanoi. The former wants to win the operation rights to the terminal for 20 years while the latter wants to take over it.

The selling mechanisms and prices are currently being prepared and the ministry will then negotiate with investors. In case there is more than one investor interested in a project, a competitive bidding would be organized.

Regarding the sale of ports, T&T Group has proposed buying all the State stake at Quang Ninh Port while Vingroup wants to acquire an 80% stake at each of Haiphong and Quang Saigon ports.

PetroVietnam suggests building fuel warehouse on Phu Quoc

Vietnam Oil and Gas Group (PetroVietnam) is seeking the government of Kien Giang’s support to build a bonded warehouse for fuels and a logistics port system on Phu Quoc Island.

According to the provincial authorities, the project is to supply and distribute fuels for wholesalers in Kien Giang Province and neighboring localities.

The warehouse and the port system would operate as an entrepôt for temporarily importing and re-exporting fuels to Southeast Asia and other parts of the world.

The project is estimated to cost some VND500 billion (US$23.4 million) sourced from PetroVietnam’s equity and bank loans. It is designed to consist of a warehouse able to store up to 100,000 cubic meters of fuels, an import port which can handle cargo ships of at least 30,000 DWT, and an export port for ships of no more than 15,000DWT.

PetroVietnam could start work on the project this year if related procedures are completed as soon as expected. The firm plans to implement it within two years.

Le Van Thi, chairman of Kien Giang Province, said the province would consult relevant ministries and agencies over the project. It suggested agencies and PetroVietnam work together to find an appropriate location for the project.

Ha Giang to host largest-scale economic conference

The northern bordering province of Ha Giang will organize a conference to seek solutions to its socio-economic development on March 20.

The information was released on March 10 in Ha Noi at a meeting to introduce the conference, the largest of its kind in Ha Giang.

The event will be jointly organized by the Party Central Committee's Economic Commission, the Northwest Steering Committee and the province’s People’s Committee.

The conference will hold three sessions including border trade development to create forces for the local socio-economic development, tourism economic development strategy to connect with other provinces in the Northwest, Northeast and China’s Yunnan and agricultural restructuring.

65 enterprises to be honoured with 2014 National Quality Awards

As many as 65 outstanding Vietnamese businesses in 2014 will be presented with National Quality Awards, according to the Government's Decision No.332/QĐ-TTg issued on March 10.

Under the decision, 19 enterprises will be awarded with golden prizes while the remaining 46 enterprises will receive silver prizes.

Dong Tien JSC based in Dong Nai province tops the list of enterprises, followed by Civil Engineering Construction Corporation No.4 (Cienco 4), Hai Duong Pump Manufacturing JSC, Long Hai Co. Ltd and Can Tho Sugar JSC among others.

Among 46 enterprises winning silver prizes, 11 are large companies and 35 are small and medium sized enterprises.

The annual awards were first launched in 1996 with the aim of honouring enterprises with excellent goods and services and who have made significant contributions to the national socio-economic development.

Last year, 82 enterprises were presented with the 2013 National Quality Awards including 20 golden prizes and 62 silver prizes.

Rubber production network to be formed in Southeast Asia

Minister of Agriculture and Rural Development Cao Duc Phat on March 12 held talks with Thai Minister of Agriculture and Cooperatives Petipong Pungbun Na Ayudhya on the establishment of a network of large rubber producers in Southeast Asia.

The Thai Minister hoped that Viet Nam will join the network together with six other ASEAN members of Thailand, Malaysia, Indonesia, Laos, Cambodia and Myanmar. After the network is set up, its rubber output will account for 70% of the global production.

A rubber exchange will be established at each nation.

Viet Nam should join the network to form the market, set up joint price and a regional rubber exchange, the Minister suggested.

Minister Phat revealed that Viet Nam will closely coordinate with Thailand, Indonesia and Malaysia to propose specific activities to the initiative.

17,000 Vietnamese laborers sent abroad in two months

The total number of Vietnamese working overseas reached 17,206, including 5,160 women, over the past two months of the year, accounting for 18.11% of the year’s plan and equal to 123.51% of the same period last year.

According to the Department of Overseas Labor, under the Ministry of Labor, Invalids and Social Affairs (MOLISA), in February only, 8,537 Vietnamese workers were sent abroad.

Of the figure, Taiwan (China) received 5,770 ones, Japan, 1,884; the Republic of Korea, 193; Malaysia, 205; Saudi Arabia 295; and Macau 24.

During the reviewed months, Taiwan led labor export markets of Viet Nam, recruiting 10,906 Vietnamese workers, accounting for 63.4% of the total.

432 enterprises to be equitized in 2015

The Steering Committee for Business Renovation and Development will direct and urge ministries, agencies, localities, economic corporation and State-owned enterprises (SOEs) to complete the plan to equitize 432 businesses.

Deputy PM Vu Van Ninh, head of the Steering Committee, has signed a decision issuing crucial tasks of the plan in 2015.

Accordingly, one of the set tasks is to consult the Government and the PM about mechanisms and policies to re-arrange, renovate and restructure State-owned enterprises (SOEs).

The committee will strengthen information and communication works and work to create consensus among ministers, agencies and businesses in restructuring SOEs.

AGPPS expands to coffee farming

An Giang Plant Protection Company (AGPPS) will invest in coffee farms and develop a coffee value chain in an attempt to raise incomes for growers and diversify products.

AGPPS general director Huynh Van Thon said the company, a major supplier of seeds and seedlings, plant protection drugs, has got involved in large-scale paddy field projects in the Mekong Delta, and now plans to grow coffee trees on 4,000-5,000 hectares in the next three to four years.

As part of the plans, the company on March 11 inked a cooperation agreement with the Western Highlands Agriculture & Forestry Science Institute (WASI) to apply technology to the coffee sector in the Central Highlands, the country’s key coffee growing area.

Under the agreement, AGPPS and WASI will join forces to develop a drip irrigation system for coffee farms, provide high-quality seedlings, and supply bio-fertilizer to turn out organic products for the local coffee value chain.

The two sides will cooperate in building a strong brand for Vietnamese coffee on both domestic and export markets in order to help improve income for growers.

Previously, they teamed up for a project to replant coffee trees with high yields on an area of more than five hectares in Daklak Province, according to WASI director Le Ngoc Bau.

“We have reaped positive fruit after seven months of implementing the project as coffee trees grow better than those planted in a conventional way. These trees can generate beans around two years after they are planted,” he said.

Thon said AGPPS and WASI share the same purpose of raising income for growers by applying technological advances to make high-quality products at low costs.

The Central Highlands is the largest coffee producing region in the nation but it is coping with a number of challenges when coffee trees of over 20 years old account for 20% of the total coffee acreage, or 120,000 hectares, and trees of less than 20 years old with low yields make up 10%.

Figures of the General Department of Customs showed Vietnam earned US$3.4 billion from exporting 1.66 million tons of coffee last year, increasing 17.5% in value and 12.5% in volume against 2013.

In the first two months of this year, coffee exports fell 25% in volume and 26.4% in value year-on-year to 242,000 tons and US$511 million, according to the Ministry of Agriculture and Rural Development.

Additional capital of operational firms higher than fresh approvals

The additional capital registered by operational domestic enterprises for their expansion projects in the first two months of this year was much higher than the amount approved for newly-established enterprises.

According to the latest report of the Business Registration Management Department, 13,766 enterprises were registered in January-February with total capital of VND77.526 trillion, up 26.6% in number and 23.3% in capital compared to the same period last year.

Meanwhile, only 3,665 operational enterprises applied for adding VND106.57 trillion to their projects in the two-month period.

In all, the registered capital of business startups and operational firms totaled VND184.1 trillion in the period, or over US$8.6 billion, according to the department under the Ministry of Planning and Investment.

The department said economic difficulties in the past time have tested the endurance of enterprises, and strong firms have weathered tough times and expanded operations.

Statistics of the department also indicated a considerable change in newly established enterprises in terms of regions. Compared to January and February last year, the Central Highlands was the only region to see a decline in the number of newly-established enterprises with a 44.7% drop.

The number of new enterprises in other regions rose, with the Red River Delta region posting the highest increase of 41.9%.

The business fields with robust increases in the number of new enterprises in the first two months included entertainment (up 241%), real estate (up 89%) and agriculture-forestry-aquaculture (up 58%). But the number in healthcare and social assistance fell a slight 2.3% in the period.

Thegioididong to open many more stores

The Gioi Di Dong Investment Joint Stock Company is planning to open more mobile device shops at supermarkets and shopping malls this year as part of its new business model “Shop in Shop.”

The company inaugurated its first Thegioididong.com shop of its kind at Big C Supermarket in the southern province of Dong Nai last week. This 100-square- meter facility posted daily revenue of around VND91 million (US$ 4,260) in the first days.

 The company expected the revenue will increase to VND500 million per day on weekends. The target consumers at this store are low- and average-income customers.

Earlier, the company failed to apply the business model due to the limited area it could find at supermarkets, and inconvenient payment and delivery.

The “Shop in Shop” model is forecast to develop well in the upcoming time but retailers will face fierce competition for their expansion plans in the electronics and mobile phone areas.

Shrimp prices rise on scarce supply

Prices of unprocessed shrimp in the Mekong Delta have gone up in the past weeks due to shrinking supply rather than the lower anti-dumping duties announced by the U.S. Department of Commerce (DOC) for shrimp imports from Vietnam.

Vo Hong Ngoan, a shrimp grower in Bac Lieu City in the province of the same name, said traders buy a kilo of tiger shrimp at VND300,000-310,000 for domestic consumption while export firms quote prices at VND270,000-280,000 per kilo, up VND20,000-30,000 a kilo compared to two weeks ago.   

Prices of white-leg shrimp are from VND90,000 to VND120,000 a kilo, rising by VND5,000-10,000 a kilo against two weeks earlier.

Ngoan credited higher prices of unprocessed shrimp to rising demand and falling supply as now is the off-season for shrimp farming. Therefore, the price hike has not resulted from the U.S. lowering of anti-dumping duties on Vietnamese shrimp.   

DOC last week announced preliminary anti-dumping duty results of the ninth period of review (POR9) from February 1, 2013 to January 31, 2014. The average rate for voluntary defendants is 0.93%, down from 6.37% at POR8.

The director of a big seafood export enterprise in the Mekong Delta said news about the lower anti-dumping duties on Vietnamese shrimp exports has not affected prices on the local market.

According to the Vietnam Association of Seafood Exporters and Producers (Vasep), if the final anti-dumping duty results of POR9 announced in September remain unchanged, Vietnamese companies can boost shrimp exports stateside.

Ly Van Thuan, general secretary of Ca Mau Association of Seafood Exporters and Producers (Casep), said companies based in the southernmost province of Ca Mau lost US$12.3 million after DOC imposed anti-dumping tariffs on Vietnamese frozen shrimp at POR8 from February 1, 2012 to January 31, 2013.

The U.S. has been one of the major importers of Vietnamese shrimp products over the past years with shrimp exports stateside put at US$1 billion last year, according to Vasep.

Saigon Co.op to open many more stores this year

Saigon Co.op has plans to inaugurate an additional six Co.opmart supermarkets, 30 Co.op Food stores, one Co.op Xtra hypermarket and one Sense City commercial center this year.

The ambitious expansion was unveiled by Nguyen Thi Hanh, general director of Saigon Union of Trading Co-operatives (Saigon Co.op) at a review meeting in HCMC on March 9. Hanh said Saigon Co.op targets total revenue of VND26.2 trillion (US$1.23 billion) this year.

In addition to six new supermarkets planned in Dak Nong, Quang Binh, Bac Giang and other provinces, Saigon Co.op is seeking locations for three more to bring the total to nine this year.

As for the Co.op Food brand, the enterprise will focus on HCMC and look for franchisees for ten stores this year.

Saigon Co.op plans to open a Co.op Xtra hypermarket in HCMC’s District 7 on April 19, and one Sense City center in the Mekong Delta province of Ben Tre Province in the third quarter this year.

Last year, Saigon Co.op opened six supermarkets, 17 Co.op Food stores, 30 Co.op shops and one Sense City facility in the Mekong Delta city of Can Tho to raise the total number to more than 365 nationwide. The establishment of Co.opmart Cao Lanh in Dong Thap Province helped the enterprise complete its distribution chain of Vietnamese goods with stable prices in 13 provinces of the Mekong Delta.

HCMC vice chairwoman Nguyen Thi Hong said Saigon Co.op should expand its retail system to the city’s suburban districts to meet consumer demand there.

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