Two Vietnamese trademarks enjoy US protection certificate

The US State Patent and Trademark Office has granted a certificate of monopoly protection for two Vietnamese trademarks “Cho Dao fragrant rice" and "Chau Thanh-Long An dragon fruit ".

This certificate is valid for 10 years, said Long An provincial Department of Science and Technology Director Mai Van Nhieu.

Trademark protection is guaranteed based on three fundamental rights: the right to prohibit act of any use of production facilities of the same business line in a protected territory; the right to transfer the rights of use to any partner in the country; and the right to request legal enforcement agencies to protect their trademark if any one violates the copyright.

The Mekong Delta province of Long An province is planning cultivation areas for “ Cho Dao fragrant rice and "Chau Thanh-Long An dragon fruit” specialty, building and guiding the production process according to the criteria specified for each type of crop and supplying and ensuring the quality of seed and plant protection.

In addition, Long An has stepped up communication on its specialty items, promoted trade activities to seek outlets for these products at home and abroad and maintain the validity of monopoly protection certificates in the US and foreign countries in general.

The locality has also provided legal aid for cooperatives with protected trademarks, provided information on trade technical barriers and selected intellectual property representatives from abroad to deal with disputes arising from exporting goods.

Due to the limited fragrant rice growing area, the province’s rice output is very small, only about 1,500 tons per year.  The specialty rice smells delicious and fragrant.

Currently ChauThanh district has nearly 2,200 hectares for growing dragon fruit with an annual output of over 30,000 tons.

Over the past few years, Long An has intensified communication to raise awareness of dragon fruit growers about safety for the production process subject to the Vietnam Agriculture Practice (VietGAP) and Global Agriculture Practice (GbobalGAP) standards to ensure export quality.

Ho Chi Minh City announces socio-economic overall plan

Ho Chi Minh City on April 14 announced its master plan for socio-economic development through 2020, with a vision towards 2025.

The plan focuses on stepping up its connection with surrounding localities as well as the inter-disciplinary and inter-regional collaboration for the city’s fast and sustainable growth.

Under the plan, the country’s biggest economic hub will strive to become a multi-functioning economic, social and cultural centre with modern infrastructure system by 2020. It plans to develop facilities for the education and training, science-technology, healthcare, and sports sectors in accordance with national and regional standards up until 2030.

The city targets GDP growth ranging from 10-10.5 percent between 2011 and 2015, 9.5-10 percent in the 2016-2020 period and 8.5-9 percent in the five subsequent years. The GDP per capita will reach US$8,430-8,822 by 2020.

In the short term, the city will give priority to upgrading the local infrastructure system and raising its climate change adaptability.

It will also concentrate on developing advantageous fields and fostering economic restructuring with focal points placed on the service, industrial and agricultural sectors.

Especially, services related to banking-finance, trade, logistics, post and telecommunication, information and technology and property will be boosted in the reviewed periods.

Regarding industry, emphasis will be placed on developing mechanical engineering, foodstuffs, and pharmaceutical chemistry and rubber, in addition to clean and energy-saving technologies and support industry.

Real estate sector ranks second in FDI attraction

With Sun Wah involved in a major residential project in Ho Chi Minh City, the nation’s foreign direct investment (FDI) capital flows into the real estate sector ranked second in the first quarter, The Saigon Times Daily has reported.

According to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment, a Hong Kong investor invested over US$200 million in the condo building project in the city, sending investment capital in the sector rising. FIA did not disclose the name of the investor.

The Daily quoted a source from the Ho Chi Minh City Department of Planning and Investment as saying that the project earlier belonged to domestic enterprises under the name of Bay Water Co. Ltd. Then, British Virgin Islands-registered Sun Wah Vietnam Real Estate Limited made a huge contribution to the project, turning it into a foreign-invested concern.

A reliable source told the Daily that Bay Water now has three partners – Construction Joint Stock Company No.5 with a 26% stake, Sa To Investment Co. Ltd. with 26% and Sun Wah Vietnam Real Estate Limited with 48%.

In the first quarter, the nation approved five FDI projects in the real estate sector with the total registered capital amounting to over US$288 million. The figure made up 8.6% of total pledged FDI capital, ranking second among the sectors with FDI involvement.

Meanwhile, the manufacturing and processing sector came in first with 141 projects worth 2.3 billion USD, or 70% of the total FDI capital.

Vietnamese, Russian businesses boost economic cooperation

Representatives from Russian businesses operating in the field technological renovation paid a working visit to Vietnam from April 12-19 to enhance economic cooperation among businesses.

The visit is part of the long-term project “Russia-Vietnam: emerging economies” which was implemented since April 2012 under the sponsorship of the State Duma of Russia.

Project manager, Strozaeva Lubov Viktorovna said economic, trade and technological cooperation between Russia and South East Asian nations have been strengthened in recent years, particularly in fields such as economics, national defense, science, technique and education.

Apart from carrying out major projects of small and medium-sized enterprises (SMEs) from both nations, Vietnam-Russia technological cooperation at the government level has been enhanced.

The projects underway in Vietnam focus on bolstering technological cooperation, trade and investment between the two countries, supporting technological transfer, and applying new technologies in dynamic SMEs.

The Russian delegation will introduce Vietnamese partners to areas such as food industry, the environment, information technology in energy, medical equipment production and have bilateral and multilateral meetings with Vietnamese senior officials.

Int’l seminar sheds light on business opportunities

An international seminar was held in Thua Thien Hue on April 14, to boost trade promotion and introduce investment opportunities in the central province.

The event, which was part of the 2014 National Trade Promotion Pgoramme, was attended by leading economists, representatives from businesses and agencies, and ambassadors of Oman, Indonesia, Poland, Slovakia, and Nigeria.

Participants spoke highly of businesses’ role in achieving a rapid sustainable economic growth. Thua Thien Hue province should help local businesses utilize advantages and effectively integrate into the global economy.

They exchanged opinions on world economy forecasts in 2014-2015 and issues related to the integration process.

The diplomats focused their discussions on infrastructure development, support industries and tourism, as well as measures to create close links among businesses.

Officials from Thua Thien Hue province also took the opportunity to introduce incentive policies and voice support for investors.

Vice Chairman of the provincial People’s Committee, Phan Ngoc Tho said his province ranked second among 63 provinces and cities across the country in terms of the provincial competitiveness index (PCI) last year.

The province’s GDP rose by 7.57% in the first quarter of this year despite low purchasing power. It is expected to record a 9% economic growth rate in 2014 and generate jobs for 16,000 workers.

China, Vietnam strengthen trade links

Vietnam and China aim to achieve a bilateral trade turnover of US$60 billion and reduce Vietnamese import surplus from China by 2015.

The information was revealed at an April 14 seminar discussing ways to strengthen economic and trade cooperation between Vietnam and China’s Guangdong province in Hanoi.

At the seminar, Deputy PM Pham Binh Minh spoke highly of economic and trade cooperation which have played a crucial role in the comprehensive relations between Vietnam and China.

The seminar gave both sides a good chance to connect and strengthen trade exchange and mutual understanding between the business communities and bolster cooperation in economics, trade and investment between Vietnam and China in general and among Vietnam’s localities and China’s Guangdong province in particular.

The Vietnamese leader also emphasised that despite the global economic downturn, two-way trade turnover saw an average growth rate of nearly 30% per year over the last decade.

 Deputy Minister of Industry and Trade, Nguyen Cam Tu also appreciated potential, cooperative advantages in the field of economics, trade and investment between Vietnam and Guangdong province. Last year, two-way trade turnover between Vietnam and Guangdong reached nearly US$12.3 billion, up 40% against 2012’s figure.

Until February 2014, bilateral trade turnover was US$1.7 billion including US$720 million from Vietnamese exports to Guangdong, up 19.4% and US$995 million worth of its imports from the Chinese locality, up 7.5% against the same period last year.

Vietnam accounts for 11.6% of the total trade turnover between ASEAN countries and Guangdong.

Hu Chunhua, Politburo member and Secretary of the Guangdong provincial Party Committee, said that Vietnam and Guangdong have strong demands for enhanced cooperation with advantages in geography, natural resources and solid foundations in economic and trade cooperation.

During the event, Guangdong province proposed some solutions to expand bilateral trade, accelerate the development of economic cooperative zones and transport infrastructure, and increase cooperation in agriculture and fisheries as well as building an effective cooperative exchange mechanism.

Leaders witnessed the signing of cooperative agreements and contracts valued at over US$200 million in the field of farm produce, electronics, telecommunications, and training.

Rice exports earn high revenue

From January 1 to April 10, 2014 Vietnam shipped 1.324 tonnes of rice to overseas markets, earning a staggering US$622.334 million.

According to the Vietnam Food Association (VFA), in the first ten days of April alone, more than 108,900 tonnes were exported, reaping US$50.956 million.

At present, paddy prices in the Mekong Delta region – Vietnam’s largest rice basket – are hovering between VND5,150 –5,500/kg.

The price of 5%-broken rice is estimated at VND6,700 – 6,800/kg, while 25%-broken rice is traded at VND6,500 – 6,600/kg.

VND25 billion for promotion programme

The Ministry of Industry and Trade (MoIT) has passed a package of VND25.21 billion (US$ 1.2 million) for second phase of the national trade promotion programme in 2014, the Government news portal reported.

The credit will assist trade promotion activities to develop market, export products and trade information in both domestic and foreign markets, heighten competence for enterprises and bring made-in-Vietnam products to urban, mountainous and border areas.

Trade promotion activities will focus on organising expos to advertise promising sectors such as food processing, aquaculture and agricultural products to both traditional and potential markets such as the US, RoK, Japan, China and new ones in the Western Asia and Africa.

The programme will prioritise domestic trade promotion activities especially establishing a distribution channel in rural, mountainous, border and disadvantageous areas.

Specifically, the programme supports six regional fairs and 128 projects which bring Vietnamese products to remote areas.

Earlier, the previous national promotion programme in 2013 attracted over 6,000 enterprises with 572 signed contracts worth over US$1.4 billion and over 1.8 million of visitors.

SBV circular sets restrictions for credit institution ‘families'

The total credit limit granted to founding shareholders, major shareholders, family members and related parties must not exceed 5 per cent of the charter capital of a credit institution.

This is stated in the draft of a new circular issued by the State Bank of Viet Nam. The circular is designed to suppress the growing sophisticated ‘familisation', or cross-shareholding, at credit institutions, which, at the bottom line, tackles bad debt and improves system safety.

Credit limit for major shareholders and their family members also must not exceed their face-value-based capital contribution to banks.

The draft also restricts credit institutions from granting privileged loans without collaterals to auditing companies, auditors, chef accountants and major shareholders.

Such loans can also not be granted to founding shareholders, subsidiaries, companies or to those who bear certain relations with banks.

Regarding such lending plans, credit institutions must report to shareholders, owners and the central bank.

In another attempt to solve the illusion of bank capital and improve the transparency of capital flows, the draft requires credit institutions to report actual charter capital every six months.

The actual charter capital is determined after taking out risk provision funds and calculating all income and spending.

If the value of actual charter capital is lower than legislative capital, banks must seek solutions and report to the central bank. If actual charter capital falls under 80 per cent of legislative capital, the State Bank will apply some measures to restrict operations of the banks.

In fact, cross-shareholding issues have complicated the process of restructuring the vulnerable banking system. The entire system had been on the verge of a crisis following many years of excessive credit growth and easy lending to state corporations along with cross-shareholding issues.

Financial reform is one of the three pillars in a programme of economic restructuring that Viet Nam unveiled in late 2012. If the deep-seated problems in the banking system are not resolved, the progress of economic reforms might face long delays.

VN amends investment law to boost efficiency

The amended Law on Investment will have regulations for the strict management of projects with large amounts of registered capital, according to Deputy Minister of Planning and Investment Nguyen Chi Dung.

Dung noted that after eight years of implementing the existing Law on Investment, the law still has many weak points, including regulations on investment conditions, procedures, incentives and support, which have not ensured transparency or fulfilled its potential, reported Dau tu (Vietnam Investment Review) newspaper.

Moreover, the existing law has been not yet incorporated Viet Nam's commitment to investment activities under international agreements, including commitments with the World Trade Organisation, Dung said at the meeting of the National Assembly's Economic Commission on Saturday, which was held to elicit opinions on the amended Law on Investment.

Due to these limitations, foreign investors do not find the investment environment in Viet Nam appealing, especially at the present time when there is a lot of competition among regional countries to attract foreign investment.

According to foreign-invested enterprises, legal systems and administrative procedures in Viet Nam have not met the expectations of foreign investors, he stated.

Additionally, the process of restructuring the economy and changing the model for economic growth requires the state to establish legal mechanisms and systems for adopting new policies.

Participants at the meeting agreed to amend the existing investment law to upgrade administrative procedures and improve efficiency in the state management of investment activities.

The amendment of the investment law is expected to limit situations where unfair advantage can be taken of gaps in the law to seek profit, including similar situations with virtual investments.

In fact, the state offices could not control the real capital that foreign investors put into their projects. There were some projects that needed capital of US$50 million each, but investors registered capital of hundreds of millions of US dollars, Dung noted. Viet Nam granted licenses to these projects, but the nation could not collect tax from them due to the provision of incentives for projects with large-scale investment.

Mai Xuan Hung, deputy chairman of the National Assembly's Economic Commission, said the amendment of the law would provide an incentive to enterprises at home and abroad to increase their investment in production and businesses in Viet Nam and would also manage the situation of virtual investment and investment brokerage through the plan.

MoIT approves funding for trade promotion

The Ministry of Industry and Trade (MoIT) has approved a package of VND25.21 billion, or about US$1.2 million, for the second phase of the national trade promotion scheme in 2014.

The Thoi bao ngan hang (Banking Times) newspaper reported that the package will fund trade promotion activities to develop markets, export products and trade information in both domestic and foreign markets, improve the capacities of the domestic enterprises as well as bring locally made products to rural, mountainous and border areas.

The trade promotion activities during the scheme's second phase will focus on organising exhibitions to advertise promising sectors such as food processing, seafood and agricultural products in both traditional and potential markets such as the US, South Korea, Japan, China and new outlets in Western Asia and Africa.

Top priority will also given to establishing a distribution channel in rural, mountainous, border and disadvantaged areas and in supporting six regional fairs and 128 projects which transport Vietnamese products to remote areas.

More than 6,800 domestic enterprises were helped to participate in trade promotion activities through the national trade promotion programme in 2013, according to the MoIT's Department of Trade Promotion.

Over 280,000 commercial transactions were implemented in 2013, with the total value of the signed deals and memorandums of understanding reaching over $1.4 billion and $7.7 million respectively.

In addition, the fair activities hosted by the programme attracted more than 1.8 million visitors, with the sales revenue exceeding VND380 billion ($17.86 million). The programme provided remarkable assistance to trade associations and helped enterprises to expand their market in the country and abroad.

Last year, the State gave VND70 billion, or approximately $3.3 million, to the programme to implement support activities for domestic enterprises, it said.

New land-use fees could thaw property market

Property companies are urging HCM City authorities to reduce land-use fees to turn around the stagnant property market.

During a meeting last week between the city administration and local property companies, property investors asked local agencies to change how the fees are assessed.

Under Decree No 69 enacted in 2009, fees are based on the market value of land rather than the amount that investors have actually paid for it.

Nguyen Xuan Quang, chairman of the Nam Long Investment Joint Stock Company, said that a foreign company taking part in a project with Nam Long complained about the lack of transparency about land-use fees and later withdrew from the housing project.

"Property investors need to be informed about land-use fees when they prepare projects. The land-use fees should be paid according to the progress of projects to ease the project owners' financial burden," Quang said.

"According to current regulations, real estate developers must pay the land-use fee before they are granted construction permits. But it always takes a lot of time for authorised agencies to calculate the land-use fees while the real estate developers cannot develop their projects without construction permits," Le Huu Nghia, director of the Le Thanh Property Company, said.

Nguyen Dinh Tan, director of the Municipal Taxation Department, agreed with the property developers and said the payment of land-use fees should be based on how enterprises sell their property products.

Dao Thi Huong Lan of the Ministry of Finance said the ministry was preparing a draft decree on new ways to calculate land-use fees.

At the meeting, representatives of property firms also complained about the wait of up to three years to be granted a permit for real estate projects.

Tran Trong Tuan, director of the city's Department of Construction, said the time needed to complete procedures for granting a construction permit often lasted 21 months. The maximum wait was 27 months.

In cases that last longer, it was often because enterprises had made errors when completing the paperwork, he said.

Tuan said it was important for the government to simplify administrative procedures, but he also asked enterprises to study the laws to ensure that they obey them.

On behalf of the city administration, Nguyen Huu Tin, vice chairman of the municipal People's Committee, pledged that the city government would quickly adjust regulations that overlap with rules of other local agencies.

To help the property recover, the city would also propose that the Government act on policies that are beyond its jurisdiction, he said.

HCM City showcases high-quality products

Around 230 local enterprises are taking part in the Vietnamese High-Quality Products Fair that opens today at the Phu Tho Indoor Stadium in HCM City's District 11.

The annual fair features more than 700 booths displaying garments and textiles, footwear, handicrafts, food and household-use products, electrical goods and other items.

Under the theme "Innovation for Sustainable Development", the six-day fair includes activities to connect technology-research organisations and enterprises.

In addition, programmes are being held to connect agricultural and food-specialty producers with supermarkets and hotels, restaurants and caterers, as well as enterprises and small traders in traditional markets.

HCM City sees growth ebb as focus shifts

HCM City is set to see a slowdown in economic growth from 2016 onwards, a master plan approved by the Government acknowledges.

The socio-economic development plan for the city — and the Southern Focal Economic Zone – released at a conference yesterday for until 2020 envisages growth of 9.5-10 per cent a year between 2016 and 2020 and 8.5-9 per cent over the next five years compared with 10-10.5 per cent now.

By 2015 income per capita will be US$4,856–4,967, nearly double that by 2020, and $13,340–14,285 by 2025.

The city's average income is 1.5 times that of the nation's.

The region's plans envisage HCM City becoming a special urban zone as well as a scientific and commercial hub on a par with cities in neighbouring countries, Le Hoang Quan, Chairman of the city People's Committee, said.

The city and neighbouring provinces like Dong Nai, Binh Duong, and Ba Ria – Vung Tau would provide the impetus for the development of other localities across the country, he said.

The master plans would become important legal frameworks for the city and the zone to enter a new era of development, that of industrialisation and modernisation, he said.

The city would co-operate with other localities for sustainable development, and give priority to infrastructure development and response to climate change, he said.

It would focus on its strengths like knowledge economy, and its economy would get a rapid makeover into a services-based one, he said.

Under the proposed model, the focus will be one nine groups of services — finance – banking - credit – insurance; commerce; transport; logistics; port; post and telecommunications; information technology and communications; and real estate.

In the industrial sector the focus will be on engineering; electronics - information technology; food processing; and pharmaceutical chemicals – rubber.

There will also be focus on bio-technology, clean energy, and energy efficiency along with the development of high-tech parks and supporting industries.

Ho Chi Minh City’s economy sees positive signs

Ho Chi Minh City saw positive signs of economic recovery with main indicators in the first quarter of this year higher than those in the same period last year.

At a working session with the National Financial Supervision Committee on April 14, Vice Chairman of the municipal People’s Committee Hua Ngoc Thuan reported that the city’s GDP growth in the first three months of the year was estimated to expand by 7.7 percent on a year-on-year basis.

He added that the city’s consumer price index (CPI) in the reviewed period rose slightly by 0.18 percent from last December and 1.15 percent on year thanks to the effectiveness of the price stabilisation programme.

The city’s budget collection reached nearly 60 trillion VND (2.82 billion USD), up 17 percent on year. Worthy of note is a surge of 9.05 percent in the economic sector’s contribution to the local budget, indicating business rebound in the city.

To maintain its economic growth in the coming time, HCM City continues to tackle difficulties for local enterprises and help them expand business and production, striving to reach the target of budget collection and raise the effectiveness of public investment.

On the day, the city has announced its master plan for socio-economic development through 2020, with a vision towards 2025.

It targets a GDP growth ranging from 10-10.5 percent between 2011 and 2015, 9.5-10 percent in the 2016-2020 period and 8.5-9 percent in the five subsequent years. The GDP per capita will reach 8,430-8,822 USD by 2020.

Long An rice, dragon fruit certified in US

Chau Thanh dragon fruit and Cho Dao fragrant rice from the Mekong Delta province of Long An have received certified trademarks from the United States Patent and Trademarks Office (USTPO), an official has said.

According to Mai Van Nhieu, Director of the provincial Department of Science and Technology, the certificates will be valid for 10 years.

The trademark protection certificates will ensure three rights for their holders. They will prohibit any production units with the same business line in the country using the trademark; have the right to transfer the rights use to any partner in the country; and have the right to request legal enforcement agencies to protect their trademark if any one violates the copyright.

Cho Dao hamlet in My Le commune, Can Duoc district - the only area in the province that can cultivate the fragrant rice - has 500 hectares of farmland. It produces over 1,500 tonnes of rice per year.

Meanwhile, Chau Thanh district has nearly 2,200 hectares of dragon fruit cultivation, with the average annual output of over 30,000 tonnes. Dragon fruit growers in the locality recently have applied production process following the Vietnam Agriculture Practice (VietGAP) and Global Agriculture Practice (GbobalGAP) standards to ensure the quality of its products for export.

Long An province is intensifying its introduction of local specialities and trade promotion to seek more markets for its products both in and outside the country.

It is also paying attention in maintaining the extension of trademark protection certificates abroad and in the US in particular.-

High-end apartment sales get liquidity boost

High-end apartments have enjoyed good sales despite not being targeted by the government’s real estate stimulus package, the Vietnam Investment Review (VIR) reported on April 14.

The paper quoted CBRE Vietnam as saying that high-end apartments worth more than 30 million VND (1,400 USD) per square metre were showing improved liquidity.

A CBRE quarterly report claimed the market had shown more activity than normal despite the traditionally post-lunar new year period.

Meanwhile Ngo Thi Huong Giang, senior manager of Research and Consultancy at Savills Vietnam said that Grade A apartments for sale had shown the best absorption rate for any segment in the first quarter.

“High-end projects are trying to woo customers. Dolphin Plaza, Indochina Plaza Hanoi, Golden West and the Watermark should all be regarded as success stories,” Giang said.

The Ministry of Construction reported that in the first two months of this year, Hanoi saw around 1,300 successful transactions, double that of the same period last year.

In reality, the improvement of high-end apartment sales began at the end of last year.

Good sales have also been seen at Hoa Binh Green City, N04 Trung Hoa Nhan Chinh and Trung Yen Plaza.

At Indochina Plaza Hanoi, 11 units were sold in the first quarter of this year, despite the price tag of 51 million VND (2,400 USD) per square metre. This project attracted customers because of its special buy-to-lease deal with the commitment of a turnover of 400 million VND (18,786 USD) per year per unit, or from 7 to 8 percent of return on investment annually.

Indochina Plaza Hanoi has only 29 unsold units while Thang Long Number One and Mandarin Garden claim only 10 percent of their units are left for sale and these were units over 100 square metre each.

According to CBRE Vietnam’s executive director Richard Leech, good brands and almost finished products were unsurprisingly popular choices.

Due to the limitation of high-rise buildings in the centre of the city, during the last year, only D.’ Le Pont D’or - Hoang Cau high-end apartment project began construction.

Excluding major projects such as Times City and Royal City developed by Vingroup, central Hanoi has around 1,000 units available for sale.

Due to the limited supply, projects owners are maintaining high prices. The Hoang Thanh Tower project has maintained 80 million VND (3,750 USD) to 100 million (4,696 USD) per square metre. Watermark are selling for up to 60 million VND (2,800 USD) per square metre whilst D.’ Le Pont D’or is charging more than 40 million VND (1,878 USD) per square metre.

According to Pham Thanh Hung, deputy chaiman of Cen Group, the price of high-end apartments had been maintained in city centre locations such as Ba Dinh, Hoan Kiem, Dong Da and Hai Ba Trung districts thanks to many customers wanting to benefit from good infrastructure facilities despite the limited housing stock.

This requirement meant that despite the available properties in further flung districts such as Ha Dong, Tu Liem and Hoang Mai, their location would act against them due to poorer quality services and local infrastructure in their localities.

In addition, Hanoi’s authorities have also banned new high-rise buildings in the centre of the city.

FTAs raise hope for increased exports to Europe

Deputy Head of the European Market Department under the Ministry of Industry and Trade Duong Hoang Minh said that exports to the European market would recover rapidly after three free trade agreements (FTAs) between Vietnam and Europe are concluded this year, the Vietnam Economic News reported on April 14.

Statistics from the Ministry of Industry and Trade showed that exports to Europe reached 6.06 billion USD in the first quarter of this year, an only 7.1 percent increase from a year ago, compared with 28.5 percent for Vietnamese exports to Oceania, 25.3 percent to America, 21.6 percent to Africa and 12.4 percent to the rest of Asia.

Duong Hoang Minh said slow economic recovery in Europe resulted in low demand for imported goods. In addition, political changes in the Ukraine and Russia also affected exports to these countries. For these reasons, exports to many European markets fell against the same period last year. Specifically, exports to the Ukraine reached 57 million USD in the first quarter of this year, a 4.7 percent drop from a year ago, the UK 851 million USD, a 6.8 percent drop, and Germany 1.16 billion USD, a 3.7 percent drop.

He also said that exports to Europe would increase by only 10 percent this year. However, the Ministry of Industry and Trade is negotiating three important FTAs with Europe including Vietnam-EU FTA, Vietnam-Customs Union of Russia, Belarus and Kazakhstan, and Vietnam-EFTA (Norway, Iceland, Liechtenstein, Norway and Switzerland) FTA. The FTAs are expected to boost bilateral trade between Vietnam and European countries.

Specifically, after the FTA with the Customs Union of Russia, Belarus and Kazakhstan is concluded with export tax preferences, Vietnamese exports to Russia would probably increase by 63 percent, Belarus up by 41 percent and Kazakhstan up by 8 percent. Similarly, Russian exports to Vietnam would likely increase by 75 percent, Belarusian exports up by 83 percent, and Kazakhstani exports up by 83 percent. The fifth round of negotiations on this FTA was completed on April 5 and final FTA negotiations are scheduled for completion by the end of the year.

Similarly, Vietnam would significantly increase its consumer goods, agricultural products and food exports to the EFTA. So far Vietnam-EFTA FTA negotiations have not yet been completed. However, according to previous FTAs between the EFTA and other countries, the EFTA committed to reducing all tariff lines on industrial and manufactured products to zero percent. In this light, after the FTA between Vietnam and the EFTA is concluded, Vietnamese exports to this market would pay fewer taxes, have easier access to the EFTA countries and improve their competitiveness.

In addition, with the presence of global leading groups in Vietnam, the country is expected to become an important overseas investment destination for EFTA investors. The eighth negotiation round on the Vietnam-EFTA FTA is scheduled to take place this April in Switzerland and be completed this year.

After the Vietnam-EU FTA takes effect, more than 90 percent of Vietnamese exports to the EU would pay zero percent taxes. Trade between Vietnam and the EU would increase by 30-40 percent, while a variety of tariff barriers would be removed. The sixth round of FTA negotiations was completed early this year and the FTA would be concluded this coming September.

Duong Hoang Minh said that in the short run the Ministry of Industry and Trade would get together with local departments of industry and trade to speak about advantages and disadvantages for exports to Europe in order for businesses to make the most of the concluded FTAs which are expected to motivate trade between Vietnam and European countries this year and in the future.

Automated customs system implemented in Dong Nai

An e-customs system which is able to deal with declarations within three seconds was carried out at the Bien Hoa customs department in the southern province of Dong Nai on April 14.

The Vietnam Automated Cargo and Port Consolidated System/Vietnam Customs Information System (VNACCS/VCIS), the first of its kind implemented in the province, aims to realise the development strategy in the field to 2020 and the plan reforming and modernising customs between 2011 and 2015.

Once operational, the system will better the automated tax calculating function, shorten procedure times and enhance links between ministries and departments.

After a three-month trial period starting on November 15, 2013, up to 18,196 enterprises nationwide have registered to join the system, and 10,154 have run it on a trial basis.

VNACCS/VCIS, worth nearly 2.7 billion JPY (21.2 million USD) funded by the Japanese Government, is scheduled to be fully applied across Vietnam from June 1.

As of April 23, the provincial customs departments of Long Thanh, Nhon Trach, Binh Thuan, Long Binh Tan, Thong Nhat and the Long Binh processing zone will put the system into use.

The Customs of Vietnam under the Ministry of Finance started applying this system at departments in Hanoi, Hai Phong and Bac Ninh on April 1.

Southern regions hope fruit can bring sweet success

The Ministry of Agriculture and Rural Development plans to zone off an additional 257,000 ha of land in the south for growing fruits that are expected to meet food safety standards.

Half of the harvested fruit will be labelled with the Good Agricultural Practices (GAP) standard from now to 2020, according to the Southern Fruit Research Institute (SOFRI).

Local farmers will develop 12 fruit trees: dragon fruit, mango, rambutan, durian, star apple, grapefruit, longan, banana, pineapple, orange, custard-apple and mandarin in the Mekong Delta and the Southeastern regions.

They are striving to earn 150 million VND per ha per year.

Scientific agencies under the ministry were asked to provide growers with modern farming techniques and instruct them to select good varieties to ensure stable and high-yield output for domestic and foreign consumption.

The ministry has also organised a trade promotion programme for exported fruits and implemented the Sanitary and Phytosanitary Agreement (SPS) of the World Trade Organisation (WTO) to secure links with major traditional markets and expand new ones.

Localities in the zoned-off regions have also worked together to improve infrastructure and specify policies to develop fruit production.

The southern region boasts 415,800 ha of land for fruit cultivation, producing around 4.3 million tonnes per year, accounting for 53.2 percent and 57 percent of the country’s area and output, respectively.

Conference discusses Thua Thien-Hue’s support to businesses

The central province of Thua Thien-Hue has been urged to continue supporting local businesses in order to anticipate opportunities and challenges, facilitating their integration into the global market.

Domestic and foreign economic specialists made the suggestion at a conference in the province on April 14, aiming to enable the locality to adjust its investment mechanisms and policies as well as measures on supporting its investors.

They added that the locality should heighten the role of businesses and consider their development as a boost to the province’s fast and sustainable growth in the coming time.

Participants also discussed reports presented by some ambassadors and consuls general to Vietnam on their countries’ experience in developing support industries, technical facilities and tourism, suggesting measures to boost local enterprises’ integration and development.

Vice Chairman of the provincial People’s Committee Phan Ngoc Tho declared his province has seen a stable growth while the local firms’ business and production have recovered.

In spite of a lack of key products and decreased purchasing power, the province’s GDP growth in the first quarter of this year was estimated to see a year-on-year surge of 7.57 percent, noted Tho.

This year, the province targets of a 9-percent GDP growth, granting business permits to around 600 enterprises and generating jobs for some 16,000 labourers.

Investors express confidence in Vietnam's economic outlook

Overall economic picture in 2014 is brighter than previous years, provided economic restructuring is further accelerated, economist Vu Dinh Anh told the Voice of Vietnam (VOV). The national economy grew at a rate of more than 5.4% in 2013. Excess inventory and bad debts were reduced.

Macroeconomic stabilisation and inflation control in 2013 will facilitate economic growth in 2014 and subsequent years, said the VOV.

Economic restructuring helps fuel investment growth. Economist Vu Dinh Anh also said building an equitable investment environment is absolutely crucial to attract investment flow.

He noted that foreign investors would like to see Vietnam integrating further in the world economy.

According to a recent study released by the Vietnam Chamber of Commerce and Industry (VCCI), Vietnamese and foreign investors have renewed confidence in the Vietnamese economy’s mid and long-term prospects.

60 percent of 500 leading Vietnamese businesses reported their 2013’s performances were better than a year earlier, and 80 percent have plans to expand operations in 2014.

Many major foreign business groups have similar expansion ambitions. The US fast food giant McDonald, for example, opened its first Ho Chi Minh City restaurant earlier this year.-

Vietnamese, Russian businesses plan closer bond

The Russian Culture Centre in Hanoi on April 14 held a press conference to announce the planned activities of a delegation of Russian businesses visiting Vietnam from April 12-19, aimed at intensifying economic ties between the two countries.

The visit by the firms – who all operate in technological reform - forms part of a long-term project “Russia-Vietnam: The new economy” that began in April 2012 under the sponsorship of the State Duma and the Russian Union of Innovation and Technology Centres.

Strozaeva Lubov Viktorovna, the project’s director, said that economic relations between Vietnam and Russia have enjoyed fine development thanks to bilateral activities.

More and more projects in Vietnam are focusing on strengthening the two countries’ technology, trade and investment ties, as well as promoting technological transfer and the application of new technologies, she added.

During their stay in Vietnam, representatives from Russian companies are scheduled to introduce their technologies in food industry, environment, energy and medical equipment manufacturing.

They will also attend bilateral and multilateral talks with partners in Vietnam.

Report on developing enterprises and growth quality

The annual report of Vietnamese enterprises 2013 is one of the important documents helping enterprises and policy makers understand clearly the situation of development of Vietnamese enterprises through the years and on this basis, build the suitable orientations to serve the development of business in Vietnam, according to the Authority of Foreign Information Service.

The report, themed “Developing enterprises and growth quality” was compiled by Vietnam Chamber of Commerce and Industry (VCCI) in coordination with the Economic Commission of the National Assembly and the World Bank (WB).

The report analyses the development of enterprises from three main angles and these are also three important pillars deciding the quality of growth of the economy: economic structure, competitiveness and operational efficiency in different degrees, namely enterprises, economic area and the whole economy.

In 2014, 50.7% of enterprises under survey have got the plan of keeping their business scope; 42.5% of enterprises are able to expand their business scope; 6.7% possibly reduce their business scope and only 0.1% of enterprises is possibly to cease their operations.

According to the report, the elements making direct impact on the production and business situation in 2013 have got the tendency to markedly improve, obtaining 17 points, while this index of 2013 was put at 6 points only. This is the factor on accessing the technological market, the conditions of communication infrastructure and the factor on land supply, clearance of floor space for expansion of production. Especially the element on the utilities of infrastructure has been much improved as compared of the prediction of enterprises. However, some elements were predicted to be better in 2013, but in fact, it was yet to be improved as required by the domestic market and accessibility of loans.

On the other hand, the policy and macro operation in 2013 were judged as having been considerably improved as against 2012 (shown through the index of the whole legal environment and macro economy in 2013). Enterprises assessed that the quality of the legal provisions, the efficiency in implementing the policies and the administrative procedures relating to enterprises, the improvement of attitude and the sense of responsibility of the officials in power, the stability of the legal environment and the economic operation have seen a lot of changes for the better.

With the expansion of production and business scope, economic prospect is being judged as being better and Vietnam has got advantages in supplying competitive labour. Enterprises have also focused on carrying out the restructure of enterprises for better operation.

At the ceremony to make public the report, the VCCI recommended that to develop enterprises and have growth quality, the State needs to set up the suitable sector and State economic structure, thus servicing effectively business and developing competitiveness of each locality and of the country.

To this end, the main points in restructuring the credit institutions should be carried out synchronously and consistently with the orientation of restructuring public investment, the State-owned enterprises and the credit institutions.

On the other hand, it is necessary to build the institution to encourage and orientate investment in accordance with the signal of the market, by diversifying export, expanding the domestic market, forming the supply chain and establishing the competitive market.

It is also necessary to increase the scientific and technological content and the volume of domestic value in products through investment and innovation of technology, the transfer of knowledge and attraction of FDI; to select a number of sectors of competitiveness so as to give priority to development, focusing on development of a number of enterprises with business efficiency and with the medium and larger sizes; to build favourable and equal investment environment in the direction of imposing the market discipline on all the economic sectors and enhance the capacity of the State managerial apparatus. Besides, it is necessary to develop high-quality human resources.

In terms of enterprises, it is necessary to pay attention to and make constant update of the Government’s policies so as to make full use of the support, continue to implement vigorously the process of restructuring enterprises, enhance the absorption of investment capital by the business strategy, pay attention to balancing the money flow, building, reviewing and having the mechanism to tightly supervising the system of expenditures in the process of production and business; to enhance the linkage in business, especially enterprises with the same professions, to raise the capacity of accessibility and expand the market.-

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