Mazut initiative short-circuited

Electricity of Vietnam (EVN)’s proposal for a $5.6 million mazut import fee exemption has been slapped down.

In light of Deputy Prime Minister Vu Van Ninh’s guidance relative to EVN’s proposal for a mazut tax break for its partner Hiep Phuoc Power Company Limited, state agencies shall calculate Hiep Phuoc Company’s mazut import fees pursuant to current regulations without tax incentives as proposed by the EVN.

The deputy prime minister’s guidance comes after the Ministry of Finance (MoF) sent a document to the government asking not to green-light the EVN’s proposal.

According to the MoF, Hiep Phuoc directly imports and operates authorised import of mazut for power generation at its own factory but not selling to market, so that the imported mazut is still subject to paying fuel charges in light of current regulations.

The MoF said the government would give the thumbs-up to charge and fee reductions and exemptions in special cases only.

The EVN said the group now owes $5.6 million to Hiep Phuoc, the amount is tantamount to the petroleum import fees (not including value added tax) the latter due to pay customs bodies.

According to the EVN, escalating power generation costs and dong-dollar exchange rate differences before 2010 were yet to be included in 2011 power prices. This pushed the group into poor financial health, so that it asked for the government permission not to pay mazut import fees for power generation at Hiep Phuoc.

Besides, EVN sought exemption for $5.6 million petroleum fees it currently owes to Hiep Phuoc.

South Korea trade forecast to reach $16b
 
Bilateral trade between Viet Nam and Korea could top US$16 billion this year, Ha Chan Ho, Korean Ambassador to Viet Nam, told participants at a seminar in HCM City yesterday.

The seminar coincided with the opening of the Korea International Trade Association (KITA) representative office in HCM City.

Since establishing diplomatic ties in 1992, the two countries have developed co-operation in many fields, including trade and education, Ha Chan Ho said.

Addressing the event, KITA chairman Sakong Il said bilateral trade had increased strongly in the past years, from US$500 million in 1992 to $13 billion last year.

With more than 2,500 projects worth a total registered capital of nearly $23 billion, Korea is Viet Nam's largest foreign investor.

Previously, Korean businesses primarily focused their investments in labour-intensive sectors, including garments and textiles, but are now focusing on high-tech industries.

"Viet Nam has an abundance of natural resources, while capital and technology are the strengths of Korean companies. By joining these complementary strengths, Vietnamese and Korean enterprises can achieve higher development," he said.

Deputy Minister of Industry and Trade Le Duong Quang agreed with Sakong Il, saying that South Korea was an import trade and investment partner of Viet Nam.

Bilateral trade turnover between the two countries reached more than $8.8 billion in the first half of the year, an increase of 49 per cent over the same period last year.

Bilateral trade turnover could top $20 billion in 2015 as the target set by the two governments, Quang said.

Viet Nam exports crude oil, processed seafood, coffee, rubber, garments, electronic components, furniture, footwear, steel and coal to South Korea.

It imports garments and textiles, machinery and equipment, automobiles, petrol products and other goods.

Hong Sung Hae, chief representative of KITA office in HCM City, said the office would work to strengthen economic co-operation between the two countries.

Hanoi raises investment in urban railway project

The Hanoi People’s Committee has decided to raise the total investment capital for the pilot urban railway route running from Nhon in Tu Liem district to Hanoi Railway Station to 1.275 billion EUR, up 492 million EUR from the initial capital.

The additional capital will be spent on construction and equipment (292 million EUR), land clearance, management and other expenditures (200 million EUR), the municipal People’s Committee said in a document on September 8.

The committee attributed the rising costs to changes in the price of construction materials and the increase of minimum wages over the past time, as well as inaccurate calculation of the construction volume.

The project is part of Hanoi’s master plan until 2020, under which five urban railway routes will be constructed in the capital city.

Dubai rice expo to help boost exports to the Emirates

The Rice International Conference and Exhibition (RICE Dubai 2011) to be held in Dubai in early November would boost to rice exports from Viet Nam to the United Arab Emirates, the organiser of the event has said.

Dr Faisal Ali Musa, RICE Dubai chairman, said in HCM City yesterday that the UAE could become a gateway for Vietnamese rice to a much larger market covering the Middle East, North America, Africa, and South Asia.

It had competitive advantages like a strategic location, shipping infrastructure, storage facilities and trade promotion, he said.

The UAE is the world's largest re-exporter of the grain, buying over US$2 billion worth last year and reselling 93 per cent of it.

But Viet Nam accounted for a modest $1.8 million of that figure.

Though Vietnamese rice was of high quality, Faisal said, exporters in this country did not have good contacts with importers in the Emirates.

He advised that, like major exporters such as India and Pakistan, Viet Nam should set up representative offices in the UAE to support its traders.

He also said business is wishing to participate in the event should prepare very carefully and come with brochures and samples and even cook their rice for potential buyers to try.

Viet Nam hopes to export six million tonnes of rice this year.

Those attending the inaugural RICE Dubai event were also likely to find investors in the rice business since the UAE property sector was going through a difficult period and investors were seeking to diversify into farming, he said.

Faisal expected rice importers and exporters from around 60 countries to take part in the event to be held from November 3 to 5.

Than Thanh Vu, chairman of Sao Khue Investment and Trade Promotion Organisation, said many major rice exporters had registered to meet Faisal to seek information about RICE Dubai.

His organisation is the sole partner of RICE Dubai in Viet Nam, Cambodia, and Laos.

Glassworks become operational

A subsidiary of NSG Group of Japan kicked off construction of two factories producing transparent conductive oxide and ultra-fine flat glass in the southern province of Ba Ria-Vung Tau on Tuesday.

Located at the My Xuan A Industrial Park in Tan Thanh District, the two factories will be built at a total cost of US$323 million.

The conductive oxide factory will be NSG Group's eighth and the second in Viet Nam.

Once completed, the two factories were expected to provide jobs for 500 local technical workers, said NSG Viet Nam legal representative Shingo Isshiki.

Most of their products would be exported.

NSG Group is a world leading producer of float glass used in buildings, cars and screen equipment with a network of 52 factories throughout the globe.

$23.5 million invested in beer

The Bank for Foreign Trade of Viet Nam has signed a loan contract with Ha Noi Beverage Corporation to build the Ha Noi-Thai Binh beer factory.

The venture has total investment capital of VND490 billion (US$23.5 million), including VND330 billion ($15 million) invested by the bank. The factory targets to produce 50 million litres of beer a year and is slated to be operational by the end of next year.

It will capable of expanding to up to more than 100 million litres per year.

Hoa Phat steel sales on the rise

Despite the dismal construction industry in August, Hoa Phat Steel Company sales reach 60,200 tonnes, 42 per cent up on the previous month.

During the past eight months, Hoa Phat Steel Company sold 432,000 tonnes, a 14 per cent year-on-year increase. In the last month of the second quarter and early third quarter, the steel output of Hoa Phat grew at a rate of 15 per cent.

Lam Dong exports exceed imports

The Lam Dong Central Highlands Province's export turnover has reached US$165 million so far this year, eight times higher than import turnover of $20.1 million, according to the People's Committee of Lam Dong Province.

The export turnover this year rose 16.7 per cent compared to the same period last year, attributed to the high prices of key exported items.

Import turnover has decreased 63.7 per cent compared to the same period last year.

Viet Nam best for Asian travel

The Sofitel Legend Metropole Hotel Ha Noi and the Nam Hai Resort in the central Hoi An city shared top billing in a list of Asia's 25 best leisure properties for this year in an online poll by Hong Kong-based travel and trade journal Smart Travel Asia.

Second was the Peninsula in Hong Kong, sharing third were the Amandari Hotel and the Bulgari Resort, both on the Indonesian island of Bali.

The Caravelle Hotel in HCM City claimed 23rd on the list of top business hotels in Asia.

A total of six Viet Nam properties made the poll's lists, including the Park Hyatt Hotel Sai Gon, the Furama Resort Da Nang, and Princess d'Annam Resort and Spa in Ke Ga Bay in Binh Thuan Province.

Port output hits record tonnes

The total output of goods handled through the Quy Nhon port reached a record of 4,050 million tonnes, 81 per cent of the 2011 plan and an increase of 20.36 per cent compared to the same period last year.

During the past eight months, Quy Nhon port successfully welcomed 1,207 ships.

Export goods reached 2.530 million tonnes, imports 460,000 tonnes and domestic goods 1.060 million tonnes.

Quy Nhon port has targeted a total output of over 5 million tonnes by the end of the year.

Vinalines’ losses catch State Inspectorate’s eyes

Vietnam’s leading shipping firm, it was announced today, would be put under the microscope after suffering eye-catching losses.

Dan Tri reported that the State Inspectorate had just decided to inspect Vinalines’ capital and asset usage and management following its first ever loss in 16 years of operation when the latter reported losses of VND660 billion ($31.88 million) in 2011’s first half.

Inspections will run 75 days from September 7 and cover Vinalines’ long-term investments from January 1, 2007 to December 31, 2010.

Of Vinalines’ VND660 billion ($31.88 million) losses in 2011’s first half, VND507 billion ($24.5 million) came from Vinalines’ member units while five businesses the group took over from embattled Vinashin, another state group, following Vinashin’s restructuring scheme suffered VND153 billion ($7.4 million) in losses.

Vinalines’ general director Nguyen Canh Viet attributed the losses to plummeting transport fares during the last three years.

Viet said current tough business conditions had pushed shipping firms to the wall.

After a slight rebound in 2010, the shipping market deeply plunged in the first six months of 2011. Besides, pirates in South Africa, the Aden Gulf and Malacca Strait had all adversely impacted on shipping activities and Vinalines’ shipping fleet, according to Viet.

Reality shows that when Vinalines’ maritime and port services firms reported upbeat business figures in the first six months of 2011, its shipping firms all claimed losses.

As of late June 2011, Vinalines injected VND3.460 trillion ($167.1 million) into 53 businesses, of which VND1.556 trillion ($75.16 million) pumped into shipping firms, VND885 billion ($42.7 million) poured into seaport logistics firms and around VND370 billion ($17.87 million) went to diverse fields of securities, insurance and property.

Work begins on high-tech fibreboard plant

Construction kicked off on September 7 on northern Bac Kan province's first high-tech Medium Density Fibreboard (MDF) plant in Cho Moi district.

The plant will use the most modern continuous pressing technology from Europe.

At the groundbreaking ceremony, Deputy Prime Minister Nguyen Xuan Phuc highlighted the project's importance because of the province's vast acreage of forest.

Phuc said the plant a joint venture by Sai Gon Industry Corporation, Bac Kan Forestry Company and Sai Gon-Indochina Real Estate Company would boost social security, create jobs and increase workers' incomes.

He urged the provincial authorities to strictly implement afforestation programmes.

The VND1.1 trillion ($53 million) plant will be able to produce annually 108,000 cubic metres of MDF products from 180,000 cubic metres of wood.

MDF, a type of hardboard, is made from wood fibres glued together under great heat and pressure. It is primarily used in mass-produced furniture.

The plant will create jobs for hundreds thousands of labourers and contribute VND500 billion ($24 million) to the province's annual budget.

The plant is expected to become operational by the third quarter of 2013.

Hoang Ngoc Duong, chairman of the provincial People's Committee, said the province would provide favourable conditions for enterprises that used forestry products.

Meanwhile, Vu Duc Dung, chairman of the Sahabak Company, asked the province to implement studies on high capacity processing plants and to improve road infrastructure.

The province has 10,000ha of forest covering five districts.

It has invested VND175 billion ($8.4 million) in exploiting forestry products.

Firms to offer taste of France

A French business delegation, including four companies specialised in corporate information technology, is coming Vietnam on Monday seeking business partnerships.

French Trade Commission UBIFRANCE in Vietnam said representatives from ESI Group, MEGA International, SYSUN Technologies and Worketer would visit Hanoi and Ho Chi Minh City from September 12-14.

This initiative will reinforce the links between French and Vietnamese firms with the Vietnamese government’s objective to promote the development of information and communication technologies.

“This mission shall also enable the French companies to better understand the development perspectives of corporate information technology in Vietnam, whose potentialities lie notably in internal resource management, business and industrial processes optimisation, customer relationship management, sales channels diversification, risk and quality management, collaborative tools,” UBIFRANCE said in an announcement.

On this occasion, MEGA International will seek to promote two of its major software solutions including enterprise governance risk and compliance software solution and enterprises architecture software platform.

SYSUN Technologies is willing to close a relevant distribution partnership for the commercialisation in Vietnam of its voice and data solutions for businesses and public agencies.

Worketer is currently implementing the launch in Vietnam of its collaborative Web application and its professional social network dedicated to the matching of talents and opportunities in the information technology and digital industries.

Export pathfinders point the way forward

Trade experts are showing the Vietnamese government how to boost key export items.

Former Trade Minister Truong Dinh Tuyen was assigned to lead a senior trade research team to work out a comprehensive Vietnam’s export development policies report.

Tuyen proposed the government present adequate policies to bolster growth of eight key items with high export potential. They are plastic items, fine handicrafts and artworks, textiles and garments, electronics, electrical and cryogenic products and accessories, electrical wires and cables, mechanical items and building materials.

“Through delving into Vietnam’s export outcomes from 2006-2010 we saw that these eight product groups gained higher average export growth than the pace of Vietnam’s total export growth in the same period,” Tuyen said.

He assumed the Ministry of Industry and Trade (MoIT) needed to sit with diverse product associations and export firms to discuss how to expand investment to grab higher export values.

Central Institute for Economic Research and Management deputy head Vo Tri Thanh said the report succeeded in pointing out how to boost exports of several product groups.

For instance, for wood products and wooden furniture Vietnam should embark on developing local material sources parallel to effectively handling material imports, abating exports through intermediaries and raising the proportion of exported wooden furniture.

For textile and garments, the report reads that Vietnam’s key export markets in the coming period would be the US, the EU, Canada, Japan, South Korea, Australia and markets playing a regional trading centre role such as Hong Kong, Singapore and Switzerland.

The textile and garment sector would gear towards hiking the localisation rate and product added values alongside taking a better care of the environment, pumping more capital into designing work to be able to turn out vogue products parallel to diversifying product ranges.

Apart from these eight product groups, the expert team also paid attention to agricultural produce groups to find solutions for the country to push up exports.

“Vietnamese coffee is sold at low prices. Our export partners, after buying Vietnamese coffee, only make some classification then resell the product for much higher values. Studying suitable policies for each agricultural-seafood product group is crucial,” Tuyen said.

Trade experts assumed those policies mainly involve import-export regulatory mechanisms such as investment capital and store conditions.

Experts also voiced the need for better trade promotion, at least raising state investment into trade promotion since current sums were far below that of regional countries.

“The MoIT needs expert recommendations such as the export orientation report to consult with the government about policies to bolster Vietnam’s exports in the forthcoming time,” said MoIT deputy minister Nguyen Thanh Bien.

Nation’s first elevated highway to be built in Binh Duong

The People’s Committee of the southern Binh Duong province on Sept. 6 agreed on a plan to build a 31.5km elevated highway at an estimated capital of over $800 million.

The project, the first of its kind in the country, will be built above National Highway 13 to help ease traffic jam in the route.

The four-lane highway will start from Vinh Binh bridge in Thuan An commune, neighbouring Ho Chi Minh City , and end at the belt road in My Phuoc town, Ben Cat district.

Construction of the project is scheduled to start in 2012 and will be completed in 2014.

American, German, Russian investors unveil $60 mln Vietnam deal

IDG Ventures Vietnam, Germany’s Rebate Networks and Ru-net of Russia announced Wednesday their $60 million investment agreement into MJ, a new business group in Vietnam that promotes e-commerce.

The four sides announced the MJ Group establishment and their investment at a ceremony in Ho Chi Minh City.

IDG Ventures Vietnam general manager Rachan Reddy, Rebate Networks CEO and founder Michael Brehm, Ru-net chairperson Leonid Boguslavsky from Moscow, and MJ CEO Tom Tran signed their investment deal at the MJ Group launch.

The American, German and Russian investors did not announce their stake percentage in the online commerce platform.

“This is Ru-net’s first investment in Asia,” Boguslavsky said, adding that his company saw clear potential from e-commerce in Vietnam.

IDG Ventures Vietnam’s Reddy said, “This is a significant day for MJ Group and the companies which it encompasses – Nhommua.com and Diadiem.com.

“It’s also a milestone for Vietnam’s e-commerce sector and the ICT community.

“As some of you may know, IDG Ventures has been an early believer, supporter and investor in Vietnam and Vietnam’s technology and media community. We believed in the opportunity in Vietnam and also in the Government’s plan to prioritize, promote and build the sectors.

“We also believed very early in Tom [Tran], his vision and his team.”

Rebate Networks CEO and founder Brehm said his German company invested in innovative enterprises worldwide with a concentration in Asia, Europe and South America.

Tran, meanwhile, announced the merger of Nhommua.com and Diadiem.com to form MJ.

Diadiem.com is a leading location and navigation services provider in Vietnam.

Nhommua.com is a popular online commerce platform in the country. MJ also includes Two.vn, a mobile applications company, and Two Media, an online advertising expert.

The merged company now has nearly 500 employees in Hanoi and Ho Chi Minh City, according to Tran, a Vietnamese-American.

“I’m also glad to announce that we will aggressively aim to hire at least 1,000 new employees within the next 12 months, not only in technical and management but also in administrative and support functions.”

Nhommua’s chief operating officer David Tran said that a merger could strongly boost the strengths of the sides interested. “One plus one equals two in maths but could be more in a merger,” he said while showing a slide with 1+1=3.

IDG Ventures Vietnam is the first technology venture capital fund in Vietnam. Since 2004, IDG has been working with entrepreneurs to grow innovative and market-leading companies. It currently has $100 million under management, with investments in over 40 companies in the technology, media, telecommunications, and consumer sectors.

Its anchor Limited Partner investor is International Data Group (IDG), the world’s largest IT media company.

Banks expand on foreign shores

The Viet Nam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) became the country's first bank to consolidate its presence in Europe with the opening of a branch in Frankfurt, Germany, on Tuesday.

Deputy Prime Minister Hoang Trung Hai said at the opening ceremony that the event marked a strategic step in accessing one of the leading financial centres in Europe and the world, showcasing the effective co-operation between Viet Nam and Germany.

Hai praised Vietinbank's promotion of international integration to create favourable conditions for expanding its business network around the world.

Vietinbank Chairman of the Board Pham Huy Hung affirmed that the bank had chosen to expand into Germany as Europe's leading economic centre, already a big trade partner and home to a large number of overseas Vietnamese.

Hung said that the bank would, in the long run, upgrade its Frankfurt branch into a subsidiary bank and open more branches in the Czech Republic, Poland, the UK, France and other European Union countries.

The bank plans to service Vietnamese and German individuals and businesses with products related to remittance, deposits, loans, credit cards and e-banking.

In other news, the Viet Nam Bank for Agriculture and Rural Development (Agribank), the Bank for Investment and Development of Viet Nam (BIDV) and the Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank) have chosen to open new branches in Cambodia and Laos.

BIDV bought out the local Prosperity Investment Bank Plc (PIB), naming the restructured bank the Bank for Investment and Development of Cambodia PLc (BIDC). After launching a branch in Phnom Penh in late July 2010, BIDC opened another one in Siem Reap.

In May 2011, the Sai Gon-Ha Noi Joint Stock Commercial Bank (SHB) received permission from the State Bank of Viet Nam (SBV) to open a branch in Cambodia.

Apart from the presence of BIDV and Sacombank in Laos, the Military Bank (MB) decided to invest US$12 million in a branch in Laos.

Both BIDV and Sacombank have revealed plans to open branches in Myanmar, another potential market for economic and trade co-operation with Viet Nam.

Economic zone remains capital thirsty
 
The Bo Y bordergate economic zone near Laos and Cambodia has not received sufficient State capital to meet the demand for infrastructure projects.

Only 10 investment projects with total registered capital of VND175 billion (US$8.3 million) are operating in the zone, located in Kon Tum Province in the Central Highlands, according to Lao Dong (Labour) newspaper.

The projects have produced total revenue of VND6.6 billion ($317,300) a year and provided jobs for 190 employees.

The zone, which covers 70,438ha, is part of the economic development triangle recognised by the governments of Viet Nam, Laos and Cambodia in 2004.

Under a Government decision signed in 2008 to develop the zone, it was classified as a second-grade border urban centre that would contain industrial parks, urban areas and an administration centre by 2025.

To meet the targets, the zone needed VND79.2 trillion ($3.8 billion) from the Government for the 2011-15 period to build infrastructure. However, the State has budgeted VND240 billion ($11.5 million) per year for the zone.

Since 2005, the State has invested more than VND1.65 trillion ($78 million) for 58 infrastructure projects, and of these projects, 27 have been completed and 31 are under construction.

Policies for developing the zone are still inadequate, causing difficulties for both administrative agencies and investors, according to the provincial People's Committee.

In a desolate area with mountains and forests, the Bo Y bordergate zone needed special incentives for investors, local officials have said.

Under normal circumstances, investors must negotiate with local residents when they take land for their projects. But this policy does not take into account the topography of the area and its special needs.

Nguyen Huu Hai, deputy chairman of the provincial People's Committee, said the Government should outline specific policies for economic zones like Bo Y, including more State funds for investment and more incentives for taxes, land rental fees and loans.

Venture-capital funds invest in e-commerce

Three institutional investors have agreed to invest US$60 million in the online commerce platform MJ Group for further development.

The three investors are IDG Ventures Vietnam, Rebate Networks from Germany and ru-Net from Russia.

MJ Group is the result of a merger of four local internet companies, the company announced yesterday.

The companies are Nhommua (www.nhommua.com), which specialises in an online commerce platform; Diadiem (www.diadiem.com), the location and navigation services provider; Two.vn, a mobile application company; and Two Media that involves online media.

MJ Group is the largest online commerce employer in Viet Nam with almost 500 personnel in HCM City and Ha Noi, according to CEO Tom Tran. He said his staff was expected to double within the next 12 months.

IDG Ventures Vietnam, set up in 2004, is the first technology venture capital fund in the country with US$100 million under its management.

It has invested in more than 40 companies in the technology, media, telecommunications and consumer sectors.

The Berlin-headquartered Rebate Networks invests in innovative companies worldwide with s focus on Asia. It develops global marketing and technology strategies for an international network of hi-tech online commerce startups.

Ru-Netis is a leading internet and IT investment company in Russia with more than 20 investments in Russia, Europe, North America and Southeast Asia.

Experts urge bond market development

The formation of a Government bond market would increate the liquidity of bonds and create a more standardised yield curve, said the chief advisor of Japan's Nomura Research Institute, Yoko Ogimoto, at a conference here yesterday.

The Vietnamese bond market remains limited and the nation's bonds-to-GDP ratio is relatively low, at about 16-17 per cent, compared to 40 per cent or more in other regional neighbours like the Philipines, Thailand and Malaysia. The value of the local market as of July was about US$16.2 billion, 90 per cent of which was in Government bonds, according to the Viet Nam Bond Market Association.

Yields for Viet Nam's Government bonds were ranging between 12.27-12.67 per cent for maturities of 1-15 years, with three-year bonds demonstrating the highest liquidity.

"The most important factor is for an asset to be liquid, making three-year maturities more appropriate," commented the head of Standard Chartered Bank's bond and derivative transaction division, Cao Thanh Huyen.

"Yields in the primary market have not truly reflected supply and demand of bonds, and have not acted as an orientation for the secondary market," added Viet Nam Bond Market Association general secretary Do Ngoc Quynh.

Over 95 per cent of investors in Government bonds were commercial banks, who often held them until maturity and relied on the open market as a secondary reserve of liquidity, if needed. Quynh said.

For corporate bonds, Quynh added there was a lack of standardised transactions, and many repo transactions were conducted on the secondary market in the form of outright transactions. Regulations were also needed to support the establishment of credit rating firms.

"Because the competitiveness and effectiveness of the economy is limited," Quynh said, "investors are losing their faith in the bond market and foreign investment is also decreasing."

Quynh urged Viet Nam to develop a master plan for the bond market. A legal framework should be carefully studied to prevent harmful speculation to the future market, Huyen cautioned.

"Derivative instruments are a complicated area which needs a lot of research," added State Securities Commission vice chairman Nguyen Doan Hung. "We plan to establish a thorough legal framework on derivatives by 2013."

Centre budgets $4.9 million for fisheries extension projects

The National Agricultural Extension Centre will earmark more than VND102 billion (US$4.9 million) for several fisheries projects to be undertaken until 2015.
They will seek to provide farmers with knowledge and technologies required to make aquaculture more efficient and sustainable.

They also aimed to ensure food safety and hygiene, protect the environment and aquatic resources, and contribute to restructuring the rural coastal economy, creating jobs and increasing farmers' incomes, the centre said.

Priority would be given to projects using modern technologies and with high productivity and quality to raise the prestige of the country's seafood brands, including those for breeding sugpo prawns, white-leg shrimp, tra and basa fish, and tilapia in Lang Son, Yen Bai, Ha Giang and Son La provinces.

They will conform to GAP (Good Agricultural Practices) standards.

There will also be projects to farm traditional fishes to in Tuyen Quang, Lao Cai, Lai Chau, Phu Tho, Quang Ngai, Soc Trang, Ca Mau and many other provinces.

Farming of fresh and brackish water fish will be strengthened.

High-rise parking lacks investors
 
High-rise parking lots might be the answer to parking conges-tion on Ha Noi streets, but costly construction and slow returns have deterred investors.
Figures from the municipal Department of Transport show that Ha Noi has only about 1,000 official street spaces for cars, about 10 per cent of demand.

Thus, local authorities have been allowing certain pavements, roadsides and alleys to be used for parking.

But dozens of illegal parking lots have been set up on pavements and vacant public space throughout the city. Most charge high fees.

In the meantime, about 4,900 new cars (and 30,000 motorbikes) were registered in the city during the first six months of this year.

This brought the number of cars up to just over 380,000 - and the total number of motorbikes up to about 3.3 million.

To cope with the boom, the transport department has proposed that the People's Committee build about 50 parking lots, including 12 high-rise buildings.

Four high-rise parking lots have been approved in Tran Nhat Duat, Phung Hung-Hang Luoc, Nguyen Cong Hoan streets and the road along western To Lich River later this year. They range in space between 150sq.m and 35,000sq.m

The projects, which need investment capital of about VND80 billion (US$3.85 million), will be able to accommodate a total of 1,600 vehicles.

However, investors have showed little interest. Bui Dang Thang, director of Ha Noi Parking Company, which is in charge of the People's Committee parking project, blamed this on low parking fees and high investment costs.

He said a high-rise parking lot cost about VND20 billion ($960,000) while the fees of between VND1,000-3,000 per motorbike and VND10,000-20,000 per car were unreasonably low.

"With these fees, investors would have to spend at least 13 years to get their investment back," he said.

According to Thang, high-rise parking lots would be good for overcrowded Ha Noi as they would use much less land.

He suggested that fees be increased to attract investors.

Few farm goods use trademarks
 
Experts have called for increased efforts to manage the use of regional trademarks related to Vietnamese agricultural products to help boost productivity and revenues.

According to Ta Quang Minh, deputy head of the National Office of Intellectual Property, around 993 agricultural products were currently tied to 721 localities nationwide.

So far, only 23 out of the total number of products have been registered with regional trademarks, according to statistics released at a conference held earlier this week by the Viet Nam Academy of Agricultural Science, the Institute of Policy and Strategy for Agricultural and Rural Development and the National Office of Intellectual Property of Viet Nam.

Participants at the conference agreed that registering trademarks for agricultural products was critical in raising prices and value, thus raising the incomes of both producers and traders.

"It is a passport to certify a product's origin, differentiating it from those available in other regions," Minh said, adding, "It is also a foundation guaranteeing the rights of all sides."

Ha Duc Anh, deputy chairman of the People's Committee of the Van Yen District in Yen Bai Province, said that cinnamon from Van Yen was awarded an official trademark from the Office of Intellectual Property in 2010 which raised its value significantly against a decrease in fake products.

In Bac Giang Province, the thieu litchis (vai thieu) of Luc Ngan contributed to increasing the values of production from VND450 billion (US$21 million) in 2007 to VND 800 billion ($38 million) in 2011.

Nguyen Van Bo, head of the Viet Nam Academy of Agricultural Science, said that many registered trademarks have already been violated, most notably in connection with Phu Quoc fish sauce, which in some cases had originated in Thailand instead of Viet Nam.

Bo noted that the lack of proper management in registering trademarks had also led to problems, such as price fluctuations and violations where, for example, many types of pomelo grown elsewhere, had been labelled as coming from Doan Hung in Phu Tho Province.

So far, those committing violations were not subject to any form of legal responsibility, leading to a lack of interest among producers and farmers to register their products, according to Bo.

Minh, from the National Office of Intellectual Property, said that guidelines should be established for managing and exploiting agricultural trademarks as part of efforts to develop agriculture sustainability. He suggested that the management agricultural trademarks should cover export products.

It was suggested at the conference that the Government provide support policies to businesses in protecting trademarks, such as labelling products sold in supermarkets and raising consumer awareness.

Push for growth in trade villages

HCM City has several trade and craft villages in its outlying districts and the Department of Agriculture and Rural Development hopes to increase their annual production growth rate to 17 per cent from 12 per cent in the next five years.

Nguyen Trong Liem, deputy head of the department's Rural Development, said the city would assist them with loans, vocational training, and promotion for the purpose.

A "One Village One Product" movement, a successful model in Japan, would be initiated to facilitate their development and increase rural incomes, he told a conference held yesterday to review the status of trade villages.

They would likely create 40,000-45,000 jobs in the next five years, he said.

Some of the best-known villages include those weaving bamboo and making girdle cakes in Cu Chi District, breeding crocodiles in Cu Chi and 12, producing salt in Can Gio, and growing flowers and bonsai village in Thu Duc.

The first four were chosen in 2003 by the city to participate in a pilot development programme.

Last year their turnover was worth VND54 billion (US$2.57 million), according to a report from the department.

The factors hindering the development of trade villages are lack of capital and skilled craftsmen, outdated production technologies, and lack of promotion.

More than 80 per cent of the businesses there lacked of funds to invest in technology or expansion, the report found.

With almost all of them being household businesses, 95 per cent operated out of houses.

Obsolete technologies and unplanned development not only made them uncompetitive but also caused environmental pollution and badly affected living conditions in the villages.

None of the villages had waste treatment systems.

Farm practices trail research

The agricultural sector has boosted productivity over the past few years and Viet Nam is now among leading exporters of rice and coffee, but it has yet to reach its full potential, according to experts.

They said the sector needed to apply modern technology and new higher-yielding and disease resistant varieties to boost production.

At a national conference on the application of science and technology in the agricultural sector from 2006-11 held last month, it was announced that Viet Nam had spent VND2.6 trillion (US$125 million) over the last five years on scientific research in agriculture and the use of the latest technologies.

Attendees heard that there had been 4,300 scientific studies on boosting production that included cultivating more disease resistant and productive crops.

However, experts heard that the findings of the studies had yet to be widely applied.

"There's a huge gap between scientific research in agriculture and the results on the farm because agricultural products have to be adapted and to meet local demand," Le Quoc Thanh, director of the Centre for Technology Development and Agricultural Extension under the Vietnam Academy of Agricultural Science.

In addition, he said that much of the research had been based on inaccurate and outdated information and that many of the suggestions impracticable.

The centre, which was established in 2010, was tasked with coming up with strategies to boost agricultural production. Thanh said a major drawback with many of the proposed strategies was that they could not be widely applied.

"That's where we come in. We can identify areas that would be suitable for new technology or new varieties of crops," he said. "For example, we have been able to work with scientists and local authorities in Yen Bai Province to establish a 100 ha area to cultivate Vietnamese japonica round rice."

In an interview with VOV News, Nguyen Van Bo, director of the Viet Nam Academy of Agricultural Science, said that small-scale farmers were reluctant to embrace new technologies. They are also loath to change practices that were instilled generations' ago, he said.

"We have to create large-scale farms in order to meet the growing demand for agricultural products," he added.

A report, prepared by the academy, stated that VND617 billion ($29.6 million) had been allocated on 1,200 projects between 2006 and 2010. It said that scientists from the academy had studied and genetically engineered 260 new types of crops. However, it said that few of these new disease-resistant varieties had been planted.

Bo said research should focus on the sustainable development of important sectors such as rice, coffee and pepper.

Professor Nguyen Thi Tram, a leading expert on cross-bred rice, who won the Kovalevskaia Award in 2000 for outstanding female scientists, said the problem was not with farmers being reluctant to change. She said scientists should get out of their laboratories and into the field to prove that new crop varieties could boost incomes.

"Once they realise just how advantageous these new varieties can be, they will buy them," she said.

In mid-2008, Tram sold a new rice variety she had developed to a company in Nam Dinh Province for VND10 billion ($480,000). She said the new rice variety was developed from a $9,000 project funded by Ministry of Agriculture and Rural Development.

Furthermore, Tram said many scientists were more interested in getting research funding than selling their ideas.

The Government wants at least 70 per cent of all registered research to be put into practice by 2020.

Cao Duc Phat, the Agriculture and Rural Development minister, said it was important that scientists worked more closely with farmers and Government agencies.

Other agricultural experts said the Government should provide more favourable policies for scientists, who might otherwise be lured into working for foreign-owned enterprises.

Tram added: "What we don't want is for research papers to stack up unread and unapplied."

PV