Goods transit to be accelerated in Lang Son, Cao Bang

The establishment of facilities catering to goods transit has been given the green light in northern border Lang Son province and at the Tra Linh border gate in neighbouring Cao Bang province.

According to Deputy Prime Minister Hoang Trung Hai, the move will address barriers to exports at the border gate, accelerate customs clearance and mitigate damage to local produce.

Local authorities are considering demands and budgets to plan the transit construction.

Vietnam’s domestic steel consumption up in H1

The domestic steel industry saw strong growth in consumption in the home market in the first half of this year, according to the Vietnam Steel Association (VSA).

The association reported the purchase of building steel products gained a year-on-year surge of 24.4 percent to reach three million tones in the first half of this year.

Vietnam Steel Corporation (VNSteel) had the largest consumption volume at 696,059 tonnes, accounting for 22.78 percent of the total domestic consumption in the first six months.

The second largest producer was Hoa Phat Steel Company with a volume of 675,710 tonnes, Pomina with 407,426 tonnes and Vinakyoei with 246,262 tonnes.

Meanwhile, the consumption of steel pipes also saw a growth of 34.7 percent in the first six months to 664,583 tonnes against the same period last year, the association said.

The Hoa Phat Steel Company had the largest consumption of steel pipes at 145,300 tonnes, holding 21.85 percent of the total steel tube consumption, followed by Hoa Sen (130,528 tonnes).

Nguyen Van Sua, VSA Vice Chairman, said the growth in the local steel industry supported domestic steel producers in reducing inventories and increasing their production, according to the Cong Thuong (Industry and Trade) newspaper.

To increase consumption, in recent years, companies have promoted exports, but these countries have launched various safeguards, including anti-dumping measures.

Of note, in the first six months the VSA's member companies exported 175,543 tonnes of steel, 5 percent lower than in the same period last year.

Experts said free trade agreements (FTAs) would bring more opportunities and also challenges to local steel producers because the FTAs open more export markets, but cause challenges to local consumption.

Nguyen Van Phong, Deputy General Director of the NS BlueScope Steel Vietnam, said the local galvanised steel industry would have more chances to export galvanised steel products due to advantages from the FTAs, though local steel exporters should be ready to face safeguards in countries participating in the FTAs.

Tran Tuan Duong, General Director of Hoa Phat Group, said the FTAs offer opportunities and challenges, so local steel producers should reduce production costs and selling prices, and improve production management during the integration process into the world economy.

Sua said to gain efficiencies in exports, the producers should study regulations on taxes and schedules of cutting taxes under the FTAs at export markets to avoid lawsuits for dumping Vietnamese steel products in export markets, the Hai Quan (Customs) newspaper reported.

Meanwhile, the producers should improve their competitive abilities, including quality, price and services, to maintain their growth production and business after the FTAs come into effect, Sua said.

To assure continued sustainable development, local steel producers should update technology and equipment, improve corporate management and reduce production costs to reduce selling prices of products, he added. They should also increase knowledge about safeguard measures to avoid commercial lawsuits.

Further, domestic steel industry should develop large steel producers that have financial and technological abilities and an annual capacity at 2-3 million tonnes to compete with import products in the future, he noted.

Hanoi to issue bonds

The People’s Committee of Hanoi has just announced its plan to issue bonds to mobilise resources for the development of the capital city in 2015, according to the Hanoi Moi newspaper.

The bonds, scheduled to be issued by end of this August and worth a total of 2 trillion VND (93.45 million USD), will be invested in ongoing key projects.

The subsequent resources will be allocated for 13 projects to be completed within the year, three official development assistance (ODA), projects needing government counterpart capital and another seven to be completed after 2015.

The municipal Department of Finance has been requested to work closely with the State Treasury to accelerate the effective and efficient implementation of the plan.-

Apartments for sale to stay in good shape

Despite falling sales, the apartment for sale segment will be continue to be a bright spot in the market thanks to rising supply, the effects of the amended Law on Housing and the amended Law on Real Estate Business, and financial guarantees from banks now being required for real estate projects.

“In the first half of this year the supply of apartments for sale reached over 121,400, up 180 per cent compared to 2014 as a whole,” Ms. Do Thu Hang, Head of Research at Savills Hanoi, told a press conference on July 10 on the real estate market’s second quarter performance.

Hanoi’s total apartment supply was approximately 121,400 units from 199 fully sold and 82 active projects. The total primary stock was 13,400 units, increasing 4 per cent quarter-on-quarter and 24 per cent year-on-year.

Despite the strong increase in supply, the segment’s sales were down in the second quarter. The latest report from Savills showed that some 4,630 units were sold, 18 per cent less quarter-on-quarter, while the absorption rate fell to 34 per cent, down 9 percentage points quarter-on-quarter.

The apartment for sale segment is still expected to be the most vibrant in Hanoi into the future, however. Financial guarantees from banks are an important motivating factor for buyers and bank credit has become the primary financial source for both owner-occupiers and investors.

Savills predicts that by the end of this year 26 projects supplying 12,600 units will come online. The amended Law on Housing and the amended Law on Real Estate Business, meanwhile, should increase demand. “Sales are expected to remain at a high level in the remaining quarters of 2015, but there could be elements of speculation distorting overall demand,” the report stated.

Office space standing out in HCMC

By 2017 the office segment in Ho Chi Minh City will welcome approximately 504,000 square meters of new supply, an increase of 36 per cent compared with 2014, Savills Vietnam wrote in its latest report on the Ho Chi Minh City Real Estate Market.

In the second quarter one new Grade C project, in District 3, entered the market, providing 3,200 square meters. There are now approximately 1.472 million square meters in 224 projects. Total stock was relatively stable quarter-on-quarter and increased 3 per cent year-on-year.

The second quarter also saw increasing occupancy in the office segment, by an impressive 93 per cent - the highest level in seven years. Average rent was VND541,000 ($25) per square meter, which was stable both quarter-on-quarter and year-on-year.

The report said that demand for Grade C office space was higher than for other grades, accounting for more than 68 per cent of total take-up in the second quarter.

Factors influencing demand, such as economic growth, foreign direct investment, and newly-registered enterprises, have increased year-on-year and provide positive prospects for office space demand.

Given the market performance Savills was extremely positive about the prospects for office segment this year and over the next few years.

This year one new Grade A project, three new Grade B projects and five new Grade C projects are expected to enter the market, supplying approximately 178,000 square meters.

Leadership change at Cushman & Wakefield

Cushman & Wakefield (C&W) Vietnam has announced that Mr. Timothy Horton will hand over the position of General Manager to Mr. Alex Crane, with immediate effect.

According to Mr. Horton, its culture means retaining the best individuals in the country in its Tenant Advisory Group (TAG), Retail, Project Management, Capital Market and Valuation & Research business lines. “All continue to be led by a stable group of exceptional professionals who have pushed us to lead in the sectors within which we choose to operate,” he added.

Mr. Crane said there is an extremely bright future ahead for C&W in Vietnam as they power through to their 100th anniversary in 2017. “Thanks to Tim, our business is in excellent shape, enabling us to grow and build on our services and continue to dominate in key markets and sectors,” he said.

In Vietnam for the past four years, Mr. Crane brings over 12 years experience to the role, having started his career in a multi-disciplinary advisory firm in the UK.

He previously held the position as Director of TAG at C&W, where the team achieved the highest share of significant office transactions and advised on three of the six largest office transactions in Vietnam last year.

Sacomreal introduces resort project in HCMC

The Sai Gon Thuong Tin Real Estate JSC (Sacomreal) has introduced its first resort project, Jamona Home Resort in Thu Duc district in Ho Chi Minh City, to the market.

The Jamona Home Resort project includes 238 villas with two sides adjacent to the Vinh Binh River, on an area of 9 ha. It is the company’s first high-end villa project.

Thanks to its convenient location in Thu Duc district, with easy access to two important traffic routes, National Highway No. 13 and the Pham Van Dong Highway, the resort is just 15 minutes from key areas of Ho Chi Minh City such as District 1 and Tan Son Nhat International Airport.

The project has about 3,000 sq m of green space and single and duplex villas that help residents feel they do indeed live in a resort. Pools, tennis courts, a marina, an international-standard school, a mini supermarket and a central park will also be built to meet the needs of residents.

Sacomreal also revealed it will introduce 200 high-end apartments at Jamona Apartments, its luxury project in District 7 that sold a record 500 apartments on the first day of sales.

Two months later 800 apartments have been sold at prices of VND20 million ($920) per sq m, which is competitive compared with other high-end projects in District 7.

Supermarket branding take a foothold

It is increasingly common to find products labelled under supermarket brands, offering less expensive prices on shelves of supermarkets in major cities.

According to Vu Vinh Phu, president of the Ha Noi Supermarket Association, selling products under retailers' brands is popular throughout the world and has begun to develop in Viet Nam in recent years with the participation of big names such as BigC, Metro, Co.opmart and Fivimart.

Private-label products found in supermarkets are varied from beverages and foods, as well as daily necessities such as tissue, toothpaste, shower cream and washing powder.

Currently, private-label products account for a modest percentage of store products, often several hundred product types, as well as fast-moving consumer products.

The potential of developing private labels was large in Viet Nam, given improved attitudes of consumers towards retailers' private labels.

A report by Nielsen, the global information and measurement company, released at the end of last year revealed that 84 per cent of consumers in Viet Nam said that their perception of private label brands had improved over time, being the highest rate in the region.

In addition, the price of private-label goods were less expensive, as supermarkets impose fewer fees with lower distribution costs than the same products with named brands, often from 5 per cent to 30 per cent lower.

A representative from Ha Noi Co.op Mart said developing private label brands was one of numerous development strategies of the supermarket. Currently, private-label products accounted for a modest 3 per cent of goods on shelves at the supermarket.

BigC also developed several private label brands, offering more than 1,000 products, and the number was expected to continue increasing.

Phu said that private label products were the result of co-operation between producers and distributors, which could solve distribution problems, especially for small-sized firms.

While the development of private-label goods might affect market share and consumption of existing branded products, Phu urged that supermarkets' traditional suppliers improve their products' competitiveness to compete with private label goods.

Nguyen Thi Hoai, a consumer in Ha Noi, said that if the quality of private-label products was not much different from branded products or merely "acceptable", she opted to buy private-label products due to lower prices.

According to Dinh Thi My Loan, president of the Viet Nam Retailer Association, consumers must pay attention to the quality of products when making purchasing decision.

Quality remains a decisive factor to draw buyers to come back to all products.

Agriculture exports slow down

Export growth in the first six months of this year was affected by a decline in export turnover of the agricultural and aquatic sectors and fuel and minerals, said Nguyen Tien Vy, head of the Department of Planning under the Ministry of Industry and Trade.

The turnover declined by nearly US$3.15 billion compared to the same period last year, and Viet Nam recorded a trade deficit of $3.7 billion in the first half, according to the General Statistics Office (GSO).

Minister of Industry and Trade Vu Huy Hoang has sent instructions to departments to boost links between production and processing, domestic consumption and export parties.

He urged the development of domestic agricultural products, as well as measures to control imports of farm produce.

To keep this year's trade deficit under five per cent, Hoang said policies would be issued to tightly control commodity groups which needed limiting or controlling. The ministry plans to increase administrative reforms, reduce redundant procedures for imports and exports and promote exports via the internet to reduce costs.

Viet Nam to gain from regional FTAs

Viet Nam would gain substantially from the Regional Comprehensive Economic Partnership (RCEP), which is still under negotiation, a workshop heard in HCM City yesterday.

Pham Binh An, director of the HCM City WTO Affairs Consultation Centre, said that 10 ASEAN countries and six countries with which ASEAN has existing free trade agreements (Japan, Korea, Australia, New Zealand, India and China) were negotiating the content of the RCEP, which may be finalised by the end of this year.

RCEP would create the world's largest trading bloc, he said.

It would be a comprehensive, high-quality economic cooperation model and would remove barriers to establish a favourable environment for investment and trade activities in the region, he said.

Unlike the Trans Pacific Partnership (TPP), RCEP focuses primarily on trade, including trade in goods, and trade in services and investment. TPP also includes provisions on public purchases and intellectual property, for example.

The RCEP targets creating a broad and deep engagement with significant improvements over the existing ASEAN+1 FTAs. It also seeks to achieve a modern and comprehensive trade agreement among members.

An said that more trade barriers would fall, helping Viet Nam, which has a rather large trade deficit with this region.

Dinh Thu Hang from the Central Institute for Economic Management (CIEM) said, like other FTAs, RCEP would open new opportunities for Viet Nam to expand export markets via tariff reductions, import input materials, and machinery and equipment at cheaper costs.

Vietnamese firms would be able to participate in the region's value and production chains and exchange technical expertise with other countries.

However, competitive pressure from countries that have similar export structures to Viet Nam will pose challenges to companies, as Viet Nam still mainly exports raw products at a low processing rate.

An increase in non-trade barriers with partner countries had caused difficulties for local exporters, she said.

Vo Tri Thanh, deputy director of the CIEM, said overall, the country would enjoy more benefits than losses, noting that the level of benefits also depend on commitments under the free trade agreement.

As the FTA is still under negotiation, there is still no information about how the 16 parties of RCEP would open their markets.

He suggested that businesses kept up to date about FTAs so they could capitalise on new opportunities and prepare to cope with challenges.

They should also understand the mechanisms for solving trade disputes to protect their legitimate interests.

Firms must focus on improving competitiveness of their products and be more active in taking part in the region's value chain.

The workshop was organised by the HCM City WTO Affairs Consultation Centre, in collaboration with the EU-MUTRAP project and the Central Institute for Economic Management.

Revised Enterprise Law to create transparent environment for businesses

The revised Enterprise Law officially took effect on July 1st under which timelines are slashed to 3 days instead of 5 to 10 days in the past. Facilitating favorable conditions for individuals and enterprises to register business licensing will boost Vietnam’s economy.

In the first quarter of this year, Hanoi Department of Planning and Investment granted more than 3,400 licenses for business establishment. Nguyen Tien Hoc, the department’s deputy director, said Hanoi is the first locality to apply the revised 2014 Enterprise Law in granting business certificates.

He said the law has created the most favorable conditions for enterprises to quickly complete required procedures and is one of measures to improve Hanoi’s competitiveness index.

Hoc said Hanoi has asked relevant agencies, especially the Department of Planning and Investment, to review all procedures for business registration. As a result, it takes only three days for a business to get its license. This is an important condition for enterprises to short the time for their market entry and help Hanoi have a greater amount of newly registered companies.

Over the past 20 years, Vietnam’s business registration procedures have witnessed much progress, satisfying the national economy’s need, particularly the strong growth of the private economic sector and attraction of foreign investment companies.

The business registration timelines were shortened from 15 days in 2008 to 5 days in 2013 and 3 days by July 1st, 2015.

Nguyen Van Giap from Hanoi’s Bar Association noted that improvements in Vietnam’s administrative reforms have created more opportunities for enterprises and better conditions for businesses market-entry. The clearer the reform is, the less cost and time firms will suffer, he added.

The Ministry of Planning and Investment is implementing a project to expand the national business registration system under which businesses can declare registration forms and expand types of trading through online services.

Phan Duc Hieu, deputy director of the business environment and competitiveness department, said each firm which uses online business registration via the system will save about US$46. Every year, about 70,000 newly registered companies and 200,000 others change their areas of business.

He added the establishment of the database is one of successful models for facilitating favorable conditions for trading activities and law implementation. The system’s efficiency is that once an administrative procedure is simplified for businesses, the rate of law obedience will be naturally higher. This will create a major influence on trading activities and state management.

More than 95,000 HIV patients in Vietnam are receiving ARV treatment, which costs around VND14,000 (US$0.64) a day.

Vietnam has been relying on international donors for a large part of of its HIV/AIDS response, but the fundings have decreased for the past few years and will continue to be phased out, according to the Health Ministry.

Vietnamese shippers updated on RoK market demand

Vietnamese exporters were provided with updated information on import trends and market demand in the Republic of Korea (RoK) at a workshop in Hanoi on July 14.

Held by the Department of Trade Promotion under the Ministry of Industry and Trade (MoIT), the event was designed to introduce advantages from the Vietnam-Korea Free Trade Agreement (VKFTA), helping Vietnamese businesses maximise opportunities resulting from the pact and boost exports to the RoK.

Bui Kim Thuy, a representative from the Export and Import Department under the MoIT, said the agreement brings great opportunities and tax incentives for exporters but noted that Vietnamese import-export enterprises will need to strictly abide by origin of goods regulations.

According to Pham Khac Tuyen from MoIT’s Asia–Pacific Market Department, the RoK committed to provide tax cuts, creating export opportunities for key farm and aquatic products such as shrimp, crab, fish, tropical fruits and industrial products such as textiles and wooden and mechanical products.

Vietnam is the first FTA partner of the RoK allowed to sell special products such as garlic, ginger, honey and sweet potato in the country. Vietnam pledged to reduce taxes on raw material commodities for textiles and footwear; engines and automobile spare parts; and electrical equipment.

Participants said Vietnam would be able to export other products to the RoK through distributors such as E-Mart, Lotte Mart and trade associations.

They also stressed the need for Vietnamese shippers to improve the quality of their products and keep to standards of food sanitation safety and origin in order to join the distribution chain.

According to statistics from the Department of Trade Promotion, Vietnam shipped about 40 different commodities to the RoK in 2014, raking in 7 billion USD and representing a year-on-year increase of 7.7 percent.

With preferential taxes and transparency in technical barriers, the VKFTA will help widen opportunities for Vietnamese exports to the RoK and increase Vietnamese product competitiveness.

Shrimp exports could drop 17 percent in 2015

Shrimp exporters expect to gross 3.2 billion USD in revenue in 2015, an annual decline of 17 percent, due to shrimp disease and export difficulties in the first half of this year, said the Vietnam Association of Seafood Exporters and Producers (VASEP).

According to the General Department of Customs, the sector brought home only 1.2 billion USD from January-June, down 29 percent from a year earlier.

Frozen white-leg and tiger shrimps as materials made up the majority of the revenue with 741 million USD (down 30 percent) and 412 million USD (down 31) percent, respectively.

The decline has led to a considerable reduction in seafood exports, as shrimp is a key aquatic export commodity.

Deputy General Director of the General Fisheries Department Nguyen Huy Dien attributed the decline to the increasing global shrimp supply and resultant price reductions.

Technical, tariff and non-tariff barriers along with foreign currency exchange rate fluctuations also affected local shrimp exports, he said.

Despite the gloomy situation, Secretary General of the VASEP Truong Dinh Hoe said there are still positive signs.

Last June, shrimp output of major competitors such as India, Indonesia and Thailand failed to reach the set targets and harvesting periods in these markets have ended. Meanwhile, the appetites of key shrimp importers are increasing presenting a good opportunity for Vietnam to increase exports in the last six months of this year and increase shrimp prices by 5-10 percent.

Furthermore, free trade agreements signed between Vietnam and promising seafood importers like the Republic of Korea and the Eurasian Economic Union are expected to make it easier for shrimp export activities.

The State Bank of Vietnam (SBV) has recently increased the inter-bank average exchange rate between VND and USD by one percent, a positive sign for the sector’s recovery.

To tap these opportunities, businesses should strictly implement regulations on food safety and technical standards of foreign importers, he said, adding that the State should enact policies on foreign exchange rate and interest rates to help reduce domestic shrimp production costs and increase competitiveness.

Vietnam attends fabric & textiles trade show in India

Eleven local textile businesses are attending an international fabric & textiles trade show from July 13-15 in New Delhi, India.

The show, the 55th of its kind, features hundreds of businesses from around the world, including the US, Brazil, the UK, Turkey, Australia, Russia, Japan and Spain.

Addressing the opening ceremony on July 13, Minister of State for Textiles Santosh Kumar Gangwar stressed the need to boost exports in the sector.

He also highlighted the significant contributions of the sector to realising the “Made in India” vision for comprehensive economic development.

Chairman of the Apparel Export Promotion Council (AEPC) Virender Uppal said the show has drawn 305 customers from across the world, 202 of which are from traditional markets.

More than 2,900 buyers have registered at the event.

Corporate social responsibility discussed in Hanoi

Representatives from Japanese enterprises shared their experience in carrying out social responsibility during a workshop held in Hanoi on July 14.

According to Yoshiro Kudo, Vice Chairman of the Japanese Council on Life-Innovation, being socially responsible means making business decisions based on the sustainable growth of other companies and people’s wellbeing; not for quick profit. Hence, a healthy market economy will be built through self-improvement of business ethics.

Japanese firms are contributing to economic development in Vietnam based on the mutually beneficial ties between the two countries, he said.

A representative from Japan’s Ministry of Economy, Trade and Industry shared that if enterprises include responsibility in their strategies, it will become their strength.

He continued to note that the duty ought to be part of business management, not just humanitarian activities.

The Central Institute for Economics Management (CIEM) organised the workshop.

THACO leads auto sales in first half of 2015

With 6,666 cars sold, the Truong Hai Auto Corporation (THACO) topped the list of Vietnamese auto traders in June.

Of the figure, THACO business accounted for 38.6 percent of the Vietnam Automobile Manufacturers Association (VAMA) sales in the month.

In the first half of 2015, THACO also ranked first in the domestic market with 34,593 cars sold, equivalent to 37.7 percent of the total VAMA amount.

Kia's trademark, including Kia Morning, K3, New Sorento and Kia Rio, remain the main sales line of the company with 8,456 units, up 72 percent compared to the same period last year, followed by Mazda with 8,175 units, up 125 percent.

In the commercial automobile lines, THACO Ollin trucks, THACO Frontiers, THACO Forlands and THACO Hyundai buses are among the most requested in the first six months of this year with 17,735 units.

Based on the positive business results so far this year, THACO targets selling 78,834 cars in 2015, accounting for 42 percent of VAMA’s share and representing an annual growth of 86 percent.

Vietnamese goods fair to be held in Moscow

A high-quality Vietnamese goods fair will take place from November 11 to December 12 at the Hanoi-Moscow Centre for Culture, Trade and Hotels in Moscow.

According to organisers at the news conference on July 14, the fair will bring together Vietnamese companies, Vietnamese enterprises operating in Russia, Russian companies, companies in the Eurasian Economic Union (EAEU) that trade Vietnamese goods, travel agencies, banks and food companies.

The fair, whose exhibition space spreads across 15,000 square metres, will provide an opportunity for Vietnamese companies to introduce their products, promote their brands, approach partners, boost trade, expand markets and develop a network of local outlets and distributors.

The fair is a one of series of events to welcome the free trade agreement between Vietnam and the EAEU and helps prepare Vietnamese companies to obtain shares in the Russian market once the agreement takes effect.

Ta Hoang Linh, Deputy Director of the trade promotion agency under the Ministry of Industry and Trade, said that Russia is a potential market for Vietnam with a total trade volume of 3.5 billion USD.

The two governments hope to bring the figure to 10 billion USD by 2020, Linh said.

Customs sector asked to strive globally

The customs sector should strive to establish itself as one of the advanced agencies regionally and globally, said Vice State President Nguyen Thi Doan at a ceremony marking the sector’s 70 th founding anniversary on July 14.

She underlined that the sector will encounter a number of challenges as Vietnam accelerates its regional and international integration with a number of trade agreements expected to be signed in the time ahead.

As the guard of the economy, customs agencies are in charge of managing goods import and export activities along with preventing smuggling, counterfeit commodities and trade frauds, the Vice President noted, asking them to continue improving their personnel capacity, applying up-to-date technologies and streamlining procedures.

Meanwhile, Minister of Finance Dinh Tien Dung demanded the General Department of Vietnam Customs simplify and align the sector’s procedures and management methods with international standards, setting 2020 as the completion deadline.

He urged the sector to focus on enhancing e-customs, risk management, the national single window mechanism and tax transparency.

Director General of the department Nguyen Ngoc Tuc reported that the sector has been implementing the Vietnam Automated Cargo and Port Consolidated System/Vietnam Customs Information System (VNACCS/VCIS), helping facilitate trading activities.

It has also fulfilled the mission of serving as the standing body of the National Steering Committee for the ASEAN single window and the national single window mechanisms, he added.

At the ceremony in Hanoi, the General Department of Vietnam Customs was presented with the Independence Order (first class), a noble State title, for its outstanding achievements.

Timber brings 390-mln USD trade surplus to Dong Nai

Timber product exports from southern Dong Nai province climbed 18.5 percent year on year to reach approximately 550 million USD in the first half of 2015, bringing a trade surplus of over 390 million USD for the sector, said the provincial Bureau of Statistics.

The province mainly shipped its timber products to the US, the Republic of Korea (RoK), Japan, Canada, China and Australia.

Exports to the RoK and Japan significantly expanded owing to the duty reduction from the free trade agreements between Vietnam and the two countries.

Experts have bright forecasts for domestic timber exports by the end of this year, particularly after Vietnam signs the Trans-Pacific Partnership agreement and a free trade agreement with the European Union.

Vietnam-Laos conference on socialism-oriented market economy

Vietnam and Laos convened the third theoretical conference on the theme of developing socialism-oriented market economy, which is said to have brought about significant achievements to each country over the past 30 years, in Hanoi on July 14.

Politburo member and Head of the Party Central Committee’s Commission for Communication and Education Dinh The Huynh and Head of the Lao People’s Revolutionary Party’s Commission for Propaganda and Training Kikeo Khaykhamphithoune co-chaired the event as the two Parties are holding Party Congresses at all levels towards their National Party Congress in early 2016.

In his speech, Huynh, who is also Chairman of the Central Theoretical Council, said the Communist Party of Vietnam is increasingly aware of the substance and nature of a socialism-oriented market economy and is set to strengthen and overhaul its leadership over the process.

The conference affords both sides an opportunity to improve relevant perceptions and share the realities of developing a socialism-oriented market economy in each country, he added.

Khaykhamphithoune, who is also President of the Lao National Council for Social Sciences, briefly spoke of Laos’ roadmap and major orientations to fostering a socialism-oriented market economy.

On the table were discussions about the relationship between the State and the market and between the market and society, the market economy’s impacts on Party building, social progress and fairness, among others.

On July 15, the Lao delegation will travel to the northern province of Quang Ninh to learn about its socio-economic development experience.

Bln-USD power plant to be built in Nghe An

Construction on a 1.8-billion-USD thermal power plant in central Nghe An province is expected to commence before October 10, reported the Thoi bao Kinh te Viet Nam (Vietnam Economic Times) newspaper.

The building schedule was recently agreed on by the project’s investor – Vietnam National Coal-Mineral Industries Group (VINACOMIN) – and the Nghe An People’s Committee.

The Quynh Lap 1 factory, located in the Dong Hoi Industrial Park, will consist of two turbines with a combined capacity of 1,200 megawatts.

VINACOMIN will design a detailed construction plan at a 1:500 scale by mid-August to submit to the People’s Committee for approval.

The power plant is set to become operational in 2020.

HCM City seeks to improve business environment

The HCM City government will focus on improving the business environment and streamline administrative procedures this year and next to make life easier for investors, the Saigon Times Daily reported.

According to the Daily, in a plan issued last week, the city will reduce the time for tax payment to no more than 121.5 hours per year, goods export to 13 days and goods import to 14 days, business registration to three days, and business closure from 60 months to 30 months.

These reforms will be carried from now to the year-end.

Next year the time needed for registering for rights to ownership and use of assets will be brought down from 57 days to 14 days, settling trade disputes from 400 days to 200 days, and processing a bankruptcy request from 60 months to 24 months.

According to the city government, the competitiveness of the city is still lower than a lot of other provinces in the country.

Of the 10 sub-indexes in the Provincial Competitive Index (PCI), namely entry costs, land access and security of tenure, transparency, time costs, informal charges, proactivity of the provincial leadership, policy bias, business support services, labour training policy and legal institutions, HCM City has seven below average.

After 10 years in the PCI Survey, HCM City got into the top five of the best-governed provinces and cities in Vietnam. But its ranking was still below Da Nang, Dong Thap and Lao Cai though it is an attractive destination for many domestic and foreign investors.

Indian businesses seek investment opportunities in HCM City

On July 14, a delegation of more than 20 Indian firms paid a working visit to HCM City  to survey the market, learn about the investment climate and seek local partners to establish long-term and sustainable cooperation in the future.

The business delegation includes companies involved in such industries  as equipment, industrial and agricultural machines, construction materials, tourism, logistics, consultancy, pharmaceuticals, agriculture and food.

Regarding Vietnam-India economic links, Andhra Chamber of Commerce President V.L Indira Dult described Vietnam as an important partner of India in South East Asia as well as a strategic partner in India’s “Act East” policy.

In recent years, both nations have demonstrated strong commitments to promoting trade and investment with one another. However, they have not yet obtained positive results as expected.

She urged business communities to take full advantage of favourable conditions to accelerate trade and investment between the two nations.

Vo Tan Thanh, HCM City branch Vietnam Chamber of Commerce and Industry VCCI General Director, said the ASEAN-India FTA to take effect and the establishment of ASEAN Economic Community (AEC) later this year will open up a bright prospect for cooperation between India and ASEAN including Vietnam.

Vietnamese enterprises should seize this good opportunity to push up trade and investment with the  Indian market.

India is now among the top ten trading partners of Vietnam, while Vietnam ranks 28th among trading partners of India, with two-way trade turnover increasing from over US$1 billion in 2006 to US$8 billion in 2014.

Vietnam lychees make presence in Dubai

Vietnam lychees have debuted in Dubai market, through the support of Vietnam’s trade office in the United Arab Emirates (UAE).

Phu Hung Trading & Service Joint Stock Company has teamed up with Choithrams supermarket chain to bring Vietnam lychee directly to Dubai.

Vietnam Ambassador to the UAE, Pham Binh Dam said the introduction of Vietnam lychee to Choithrams supermarket helps  Vietnamese fresh fruits penetrate  the new potential market, as well as other Middle East nations.

Vietnam lychee have met all requirements under the VIETGAP and GLOBALGAP standards and have since been transported to Dubai by air to ensure product quality.

On the occasion, the Vietnam Embassy in the UAE also promoted some of Vietnam’s popular fruitsnamely dragon fruit, rambutan, watermelon, banana, and lemon. Accordingly, Phu Hung Company and Choithrams have consented to discuss a list of agricultural products available for exports to the supermarket chains in the future.

Every year, the trade office said Gulf Cooperation Council (GCC) nations import fruits and vegetables worth some US$6 billion, of which fruits make up the largest  proportion at 62%.

Shrimp exports to UK show abrupt increase

The UK is the only nation within the Eurozone has experienced  a strong growth in shrimp imports from Vietnam, during the first five months of the year.

According to Vietnam Customs, shrimp exports to the UK surged 50.9% to US$36.2 million within the first five months of the year. In May alone, shrimp exports to the UK rose 100%, to US$9.4 million compared to the previous month.

The increase is attributable to Vietnam’s competitive shrimp prices, compared to other nations. In addition, some shrimp types from Thailand have not enjoyed the Generalized System of Preferences (GSP) since 2014, leading to a 20% tax rise.

In the first four months, Vietnam’s shrimp exports to the UK grew 16.8% while shrimps imported into the UK from India, Indonesia, Thailand dipped 20%, 30% and 22% respectively.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), British consumers tend to consume aquatic products, especially warm-water shrimp, thus driving shrimp exports the EU and the UK up in the time ahead.

Vehicle users ignore E5 bio-fuel despite widespread availability

E5 grade bio-fuel has been largely ignored by users though it has been available in seven cities and provinces since December 2014 and the Government is set to sell it nation-wide starting this December.

It is sold at many petrol stations in HCM City, Ha Noi, Hai Phong, Can Tho, and Da Nang as well as the provinces of Quang Ngai and Ba Ria – Vung Tau.

But most customers prefer the A95 and A92 grades of petrol because not many understand the benefits of using a greener fuel.

"I know that E5 bio-fuel can increase the efficiency of the engine and protect the environment but I don't know where I can buy," Sai Gon Giai Phong (Liberated Sai Gon) newspaper quoted Nguyen Thi Anh Thu, who lives in HCM City's Go Vap District, as saying.

Tran Minh Thien, who lives in Vung Tau, was quoted in the same story as saying, "I know the Government encourages people to use E5 bio-fuel and it can protect the environment, but I buy normal petrol because I am familiar with it and the prices of the two fuels are the same."

Fuel companies themselves have not focused much on the green fuel. HCM City had planned to have more 115 petrol stations selling E5 by June 30 this year, but there are only 53 of them yet.

They sold over 21,000 cubic metres in the first four months of this year, or a mere 2.8 per cent of the total petrol sold.

According to a city Department of Industry and Trade study, most consumers prefer familiar fuels to the new E5 grade.

Petrol stations do not want to stock the bio-fuel because of this and the high storage costs and evaporation losses.

In the southern province of Ba Ria – Vung Tau, for instance, only 58 out of the total of 128 petrol stations sell E5, and their sales in the first four months of this year was a negligible 5,500 cubic metres.

Provincial authorities had issued instructions in January that all government vehicles should use E5 bio-fuel. A few months later some departments sought permission to revert to normal fuel, claiming the bio-fuel could damage engines. Strangely, the administration agreed.

The Government should offer incentives to companies to produce and distribute this bio-fuel, experts have said.

E5 is a mixture of 95 per cent petrol and 5 per cent bio-ethanol, produced mostly from corn and cassava.

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