Vietnam Airlines branch performs well in Hong Kong

The Vietnam - Hong Kong (China) air route was evaluated as one of the most effective international services of the national flag carrier Vietnam Airlines in 2016, an airline official has said.

Speaking at a get-together with important partners of Vietnam Airlines in Hong Kong, Cao Chinh Mien, Director of the Vietnam Airlines Branch in Hong Kong, highlighted the branch’s remarkable achievements during 2016. 

Vietnam Airlines transported over 260,000 passengers in 2016 on the route, up 5 percent against 2015, he revealed, adding that the number of business-class and regular customers saw a stable increase. 

He attributed the results to the improvement of service quality and the efforts of the firm over recent time, saying that Vietnam Airlines affirmed its position as a dynamic and modern airline, which has good services and can satisfy customers’ demand. 

In 2016, the national flag carrier won the awards “Asia's Leading Airline (Economy Class)” and “Asia's Cultural Airline” at the World Travel Awards. 

In the context of the global economic downturn, Vietnam Airlines’ branch in Hong Kong took many measures to promote its growth, upholding its strengths to serve customers not only in Hong Kong but also in surrounding markets. 

The branch has planed to increase the number of flights on the routes from Hong Kong to Hanoi and Ho Chi Minh City, and open a new route connecting Hong Kong with Vietnam’s central Da Nang city. 

It will also pay attention to improving the service quality and promoting its images and services targeting high-income customers and entrepreneurs, Mien said. 

During the get-together, a short film was screened, introducing Vietnam’s land and people, popular tourist sites, and prominent achievements during the national flag carrier’s development process.

Vietnam mulls environmental tax hike on petroleum products, plastic bags

Spending on environmental protection has not kept pace with significant tax increases.

Vietnam may raise an environmental protection duty imposed on petroleum products and plastic bags, according to a proposed amendment to the Environmental Protection Law prepared by the Ministry of Finance.

The draft proposes a significant increase in the cost of gasoline and other refined products.

The ministry also wanted to hike the tax on plastic bags to VND40,000-80,000 per kilogram from the current VND30,000-50,000.

In May 2015, Vietnam tripled its environmental protection taxes to make up for revenue lost from the country's accession to the ASEAN Trade in Goods Agreement (ATIGA), which required it to lower import duties on oil products.

Vietnam gained VND42.4 trillion of revenue from environmental protection tax in 2016, jumping nearly 57% from 2015.

During the same period, spending on environmental protection last year reached just VND12.3 trillion, accounting for 29% of the tax revenue.

Last year's spending represented a 7.9% year-on-year increase from 2015, Tuoi Tre Newspaper reported on January 15, quoting data from the Ministry of Finance.

MOIT to take over control of milk formula prices     

The Ministry of Finance (MoF) on Friday delivered documents to the Ministry of Industry and Trade (MoIT) regarding the management of 877 formula milk products for children less than six years old. The Domestic Market Department under the MoIT will be responsible for managing the prices of these products.

According to Decree No 149/ND-CP dated November 11, 2016, enacted by the Government to supplement and revise some articles of Decree No 177/2013/ND-CP, the management of milk prices for children less than six years old will be the responsibility of the MoIT in 2017. At present, the country has 877 registered formula products for children below six years old. Their registered and maximum prices are publicised on the portals of the MoF and local financial departments. Since June 2014, baby formulas have been placed on the list of subsidized products, with a cap on ceiling prices of 600 products, as a range of solutions, including price registration and announcements, had not been effective. The difference between retail and wholesale prices has not exceeded 15 per cent.

Earlier, the MoIT refused to manage milk prices for children of less than six years old. However, Decree No 149/ND-CP officially handed over the responsibility to the ministry.

The MoIT said the Law on Prices stipulates that the MoF had chaired and co-operated with relevant ministries, agencies and provincial people’s committees to monitor factors building prices for goods and services under the price stabilisation list, including formula milk products for children less than six years old. This was the reason that the MoF should continue to manage the price, or co-operate with the Ministry of Health (MoH), to manage the products’ prices.

“The MoIT will continue to co-operate with MoF and MoH in implementing State management on market development and distribution systems, including formula milk and other supplementary dietary products for children less than six years old,” it added.

Based on the realities of the operation and management of milk prices in recent years, the Ministry of Finance recognized that the role of the Ministry of Industry and Trade was very important, from importing to trading milk in the market, because more than 70 per cent of powder milk supply sources in Vietnam were imported.

On September 10th, 2015, the Ministry of Finance sent a report to the Government reviewing past rules and practices on the management of milk products for children under 6 years old, and the need to transfer the task of managing the price of milk products for children under 6 years old to the MoIT.

Binh Dinh to develop textile industry to global standards

Phan Cao Thang, Permanent Vice Chairman of Binh Dinh People’s Committee, has authorised a plan to develop the province’s textile industry till 2025 with orientations to 2035.

The key objectives of the plan are to build Binh Dinh’s textile industry into a key economic driver and one of the province’s chief high-quality export suppliers, to slowly synchronise production from input to output and to implement a global standard environment management system.

Binh Dinh aims to become the central coastal region’s textile centre and to enhance the national textile industry’s performance and competitiveness within the region and the world.

Between 2016 and 2020, the province is determined to increase growth in the textile industry’s production value to around 17.8 per cent. By 2020, the provincial total production value for the textile industry hopes to reach VND3.95 trillion (US$178.2 million), double that of 2015. Between 2016 and 2020, the region aims for a total export value of $495 million and new employment for 18,800 workers, up by 4,800 jobs compared to 2015.

From 2021 to 2025, Binh Dinh province’s textile production value hopes to increase 13 to 14 per cent each year with the industry’s total value reaching VND7.4 trillion to VND7.8 trillion, total export turnover at VND780 million, up by 1.6 times compared to the period from 2016 to 2020 and create employment for 22.000 to 23.000 workers, up by 3.800 to 3.900 jobs from the previous phrase.

Key products for the period 2016 to 2020 and 2021 to 2025 will include tracksuits, children’s clothing, business suits, dresses, uniforms and protective gear. Production quantity aims to increase to 51 to 53 million units in 2020 and up to 64 to 65 million units in 2025. As of 2016, Binh Dinh’s textile industry had produced 20 million units. Suits and uniforms had increased by 14.2 per cent, whereas knitwear increased by 312 per cent compared to the same period in 2015.

In order to achieve these goals, the province has invested in the textile industry to support diversified production that can transition from simple manual labour to complete production chain vertical integration.

Vietnamese bank marks one-year anniversary in Laos

Saigon – Hanoi Commercial Joint Stock Bank (SHB) celebrated a year since the foundation of its subsidiary in Vientiane, Laos, with over 100 customers, including Vietnamese and Lao partners.

Speaking at the celebration on January 14, Director General of SHB Laos Vu Anh Tuan said with the approval of the State Bank of Vietnam and the Central Bank of Laos, the SHB opened a wholly-owned subsidiary in Laos on January 15, 2016.

The new bank was upgraded from a SHB transaction office, which started operation in 2012 with initial investment of more than 14 million USD.

As of December 31 last year, total assets of SHB Laos stood at over 150 million USD. Total deposits and outstanding loan balance reached about 30 million USD and 58 million USD respectively.

SHB Laos serves more than 1,500 individual customers and businesses.

Established in 1993, SHB is among the five largest private commercial banks in Vietnam.

As of September 2016, its total assets reached more than 215 trillion VND (10.3 billion USD), including nearly 13 trillion VND (619 million USD) of equity capital.

The bank has about 500 transaction sites in Vietnam, Laos and Cambodia.

In 2016, SHB won several domestic and international honours such as being named one of the top 10 most prestigious banks in Vietnam, the best financing-project bank in Vietnam, and the best small-and medium-sized enterprise bank in Vietnam.

It was also honoured as the most outstanding foreign bank in Cambodia as well as the best deposit product and best brand initiative in Vietnam, and the best internet banking provider in Vietnam.

State bank keeps reference exchange rate stable

The State Bank of Vietnam set the reference VND/USD exchange rate at 22,161 VND per USD on January 16, unchanged from the end of last week.

With the current /- 3 percent VND/USD trading band, the ceiling exchange rate is 22,826 VND per USD and the floor rate is 21,496 VND per USD. 

In the opening hour, BIDV and Vietinbank listed the buying rate at 22,530 VND per USD, and the selling rate at 22,600 VND per USD, unchanged from the end of last week. 

In Eximbank, the buying rate was 22,510 VND per USD and the selling rate was 22,610 VND per USD, unchanged from the end of last week.

Meanwhile, Vietcombank bought one USD for 22,535 VND, and sold one USD for 22,605 VND, up 5 VND from the end of last week.

Plastics exports forecast to rise 6 percent in 2017

The Vietnam Plastic Association (VPA) has predicted that plastic exports will grow 6 percent in 2017, with major market being Japan and the US.

According to VPA President Ho Duc Lam, Japan, with a demand of 8 billion USD worth of plastic products each year, remains a promising market for Vietnam’s plastic. However, the market has high requirements for quality, which poses a challenge to the majority of Vietnamese firms, he added.

Meanwhile, the US market has continued applying the anti-dumping duty on plastic bags, causing difficulties for the export of the product to the market. But the country still imports other products, such as canvas, home plastic and plastics used for packaging, along with plastic films.

The EU market has a high demand for plastic products, he said, adding that it has not levied the anti-dumping tax on Vietnamese products.

Lam also noted difficulties facing local producers, including the large amount of imported input materials, which has reduced the sector’s competitiveness and made it difficult to take advantages of tariff preferences.

Changes in material prices and currency exchange rate also impacted the sector significantly, he said.

According to the VPA, in 2016, the plastic sector earned 2.54 billion USD from exports, a slight rise compared to 2.4 billion USD in 2015, including 2.1 billion USD from exports of products and 345 million USD from material exports.

In the year, Japan, the US and the EU were the largest markets of Vietnamese plastic. In the Japanese and EU markets, Vietnamese products made a slight growth, due to a fierce competition there and the fluctuating currency exchange rate. Meanwhile, a high growth of 7.8 percent was achieved in the US market.

GoBear Vietnam crosses 100,000 mark month after launch     

One month after its launch in Viet Nam, GoBear Vietnam this week said it had attracted more than 100,000 users using its financial comparison services.

The company said it had registered a total of 110,000 users who made a total of nearly 150,000 comparisons at the www.gobear.com/vn website, calling it “a remarkable performance”.

Launched in December last year, the company has become a household name among search and compare service providers for financial products in Viet Nam.

In pursuit of its mission to provide users a free search and compare tool for often complicated financial products such as credit cards and loans, GoBear has attracted more than five million users from all of its active markets, which include Singapore, Thailand, Hong Kong, Malaysia, the Philippines and Viet Nam.

In Asia, the company is one of the fastest-growing financial technology startups providing free financial comparison services, and is leading the way in democratising financial shopping experiences with its unbiased and personalized tools. 

Jetstar Pacific launches new routes to China’s Guangzhou

Low-cost airline Jetstar Pacific has launched two new international air routes linking Hanoi, Ho Chi Minh City and China’s Guangzhou city.

Two Airbus A320 craft of the airline took off from Tan Son Nhat airport in Ho Chi Minh City and Noi Bai in Hanoi on January 15 at 22:45 and 23:50 respectively. The return flights landed in Tan Son Nhat at 5:20 and Noi Bai at 4:35 on January 16.

Currently, the carrier operates four Hanoi-Guangzhou flights each week on Monday, Tuesday, Thursday and Saturday, along with five Ho Chi Minh City-Guangzhou flights on Monday, Tuesday, Thursday, Saturday and Sunday.

Earlier, Jestar Pacific also launched routes linking Hanoi, Ho Chi Minh City and China’s Hong Kong, and another connecting the central city of Da Nang and Taipei in China’s Taiwan.

Guangzhou, the third largest city in China after Beijing and Shanghai, is an important transportation, economic and trade centre.

A Jetstar Pacific representative said that the new routes aim to better serve the rising number of passengers travelling between Vietnam and Guangzhou, contributing to boosting tourism between the localities.

The carrier offered special tickets from 88,000 VND per leg on www.jetstar.com as well as through its agents nationwide.

Jetstar Pacific, with two major shareholders of Vietnam Airlines and Qantas of Australia’s Qantas Airway, currently operates 37 domestic and international air routes.

Instant coffee plant built in Dong Nai province

Construction started on an instant coffee plant at Nhon Trach 3 Industrial Park in Nhon Trach district of the southern province of Dong Nai on January 16.

With a total registered investment of 28 million USD in the first phase, the Tin Nghia Corporation’s plant is designed to churn out 3,200 tonnes of coffee products per year when it becomes operational in 2018.

The factory will contribute to improving value and brand of Vietnamese coffee, said Dinh Quoc Thai, Chairman of the provincial People’s Committee.

Vietnam is the world’s large exporter of Robusta coffee, making annual export earnings of 3 – 3.2 billion USD, said Luong Van Tu, Chairman of the Vietnam Coffee and Cocoa Association.

However, he also noted that raw coffee accounted for 90 percent of the country’s exports while global demand for instant coffee is on the rise.

Vietnam has opportunities to become a world-leading instant coffee producer thanks to abundant source of Robusta coffee which is the main ingredient to process instant coffee, Tu added.

Tin Nghia Corporation is one of Dong Nai’s largest enterprises and its instant coffee products will be consumed in Northern America, Europe and some Asian – Pacific countries.

Vietnamese localities enhance ties with Canadian investors

A conference on enhancing partnership between Vietnamese localities and Canada took place in Hanoi on January 16, gathering 200 government officials, business delegates and representatives of Canadian non-governmental organisations.

The event was meant to create an opportunity for Vietnamese localities to connect with the Canadian side and form partnerships, particularly in three prioritised sectors – trade-investment, development cooperation, and education-training.

At the conference, representatives of Vietnamese localities also informed Canadian non-governmental organisations about their needs for development funding to alleviate poverty and boost education.

Most participants agreed that current cooperation between Vietnam and Canada still felt short of potential. They called on local governments to play a more active role in attracting and facilitating investment and assistance from the North American country.

Deputy Foreign Minister Ha Kim Ngoc affirmed that Vietnam lays stress on strengthening relations with Canada, adding that trade is a highlight in bilateral ties.

Vietnam is Canada’s biggest trade partner in the ASEAN region, with two-way revenue reaching 4.6 billion USD in 2015 and 3.4 billion USD in the first 9 months of 2016. The two nations planned to push the figure to 10 billion USD in the next ten years. 

Canada has so far channelled 5.28 billion USD in 149 projects in Vietnam, ranked 14th out of 112 countries and territories investing in Vietnam.

Canadian Ambassador to Vietnam Ping Kitnikone recommended Vietnamese localities create favourable conditions for Canadian investors in terms of mechanism, policy and human resources. 

The dynamism and active role of local governments are a decisive factor to the attraction of investment, he said.

Chairman of the Hanoi People’s Committee Nguyen Duc Chung vowed to create best conditions for Canadian and overseas Vietnamese to invest in the city in the long term.

Canada has 23 projects, worth 7.7 million USD, in the capital city.

Ministry vows to facilitate Japan firms-Vietnam localities ties

The Ministry of Planning and Investment (MoPI) pledged to provide the best possible conditions for Japanese enterprises to operate in Vietnam and cooperate with Vietnamese localities.

The commitment was made by MoPI Deputy Minister Nguyen Van Trung at a talk between leaders of 26 Japanese firms and 36 provinces and cities of Vietnam in Hanoi on January 16. 

The function was part of an official visit to the Southeast Asian nation by Japanese Prime Minister Shinzo Abe.

Trung described the potential for investment cooperation as huge. Japan is currently the second biggest foreign investor and the fourth largest trading partner in Vietnam. It has invested in most provinces and cities and key economic sectors in the country.

Japanese firms are the most practical channel of external relations and economic partnership, helping with Vietnam’s socio-economic development, he said, lauding effective investment projects from Japan.

Hiroto Izumi, an advisor to the Japanese PM, said more than 1,600 Japanese companies operate in Vietnam and have greatly contributed to local development.

His country’s Government welcomes economic partnerships between Japanese and Vietnamese localities and wants to support those activities.

He believes that the time is ripe for localities of Vietnam to introduce their advantages to Japanese enterprises and improve the investment climate.

At the talk, some Japanese firms said each province should highlight their unique advantages to attract investment.

They said transport is a field in which Japan can assist Vietnam, adding that Hanoi should develop a public railway system to ease traffic congestion, and Japan is ready to help Hanoi build this system.

Participants at the event also looked into cooperation potential in manufacturing, agriculture, food processing, trade and services.     

Vung Ang II thermal power plant BOT project agreement clinched

The Vung Ang II thermal power build-operate-transfer (BOT) project agreement was inked between the General Directorate of Energy (GDE) of the Ministry of Industry and Trade and the Vung Ang II thermal power joint stock company on January 16 in Hanoi.

The 1,200 MW plant consists of two 600MW generators, with the first turbine group to be put in operation in 2021 while the other one will become operational one year after.

The 2.2 billion USD project will supply electricity for economic development in the northern region, ensuring national electricity security.

The GDE will support the investor in preparing procedures on investment licence and arranging finance.

Apart from the Vung Ang II thermal power BOT plant, the GDE is also involved with 17 other thermal power BOT projects with total capacity of 23,000 MW.

The same day, Minister of Industry and Trade Tran Tuan Anh handed over the project agreement to the Japanese BOT investor Mitsubishi on the occasion of Japanese Prime Minister Shinzo Abe’s visit to Vietnam.     

Vietnam’s economy to grow 6.4% in 2017

Vietnam’s economy is predicted to grow 6.4% this year, according to a report by the Vietnam Institute for Economic and Policy Research.

At a discussion to release its report for macro-economy in the 4th quarter and 2016 in Hanoi on January 16, the Institute said the manufacturing sector will be a bright spot in Vietnam’s economy and inflation rate will be 5.9% this year. 

However, Director of the Vietnam Institute for Economic and Policy Research under the Vietnam National University’s University of Economics and Business Nguyen Duc Thanh said the Vietnamese economy needs to take caution against external shocks this year due to the global economic uncertainties.

The report warned of the possibility of the US Federal Reserve’s interest rate hike three times this year, which could push up the US$ rate in Vietnam, thereby hurting Vietnam’s exports and deteriorating trade deficit. 

In order to maintain the value of Vietnamese dong in the context of rising US$ rate, the State Bank of Vietnam could increase deposit rates but this could pose risks and cause a ripple effect to the real estate sector, it said. 

The report said Vietnam’s economy grew 6.2% in 2016, lower than the 6.68% level of 2015 and the government target of 6.5%. 

Vietnam issues country's first-ever traditional fish sauce standard

A set of criteria defining Vietnam’s iconic ‘nuoc mam,’ or fish sauce, has been issued by the country’s seafood and fish sauce association.

The standard includes criteria for raw materials, quality, testing methods, labeling and transportation, all aimed at setting a bar for the quality of traditionally made fish sauce in Vietnam.

Traditional fish sauce is made by putting interwoven layers of fish and sea salt inside an anaerobic container and leaving the mix to ferment for up to twelve months, resulting in an amber-color liquid high in protein, salty in flavor, and strong on the nose.

However, many producers in Vietnam have come up with a more affordable and arguably tastier ‘fish sauce’ that gets its smell and taste from flavorings and chemicals, without the use of any real fish or the need for fermentation.

Though the chemicals and flavorings involved are safe, such products have been bashed by traditional fish sauce producers, who said their use of the term ‘fish sauce’ was misleading as they contained no actual fish.

The Vietnam Association of Seafood Exporters and Producers (VASEP) along with several local fish sauce associations published the country’s first-ever standard for fish sauce on Sunday, which looks to separate ‘traditional fish sauce’ from other chemically-made fish sauce-flavored condiments.

According to Vu The Thanh, a member of the standard’s drafting team, the criteria are only applied on fish sauce made from the natural fermentation of fish and sea salt over a period of at least nine months.

Fish-based condiments that have been diluted or had colorings, flavorings, preservatives or other additives included will not fall into the scope of the standard and will not be able to have the words ‘traditional fish sauce’ on their labels," Thanh said. 

Qualified products are then classified into three groups based on their nitrogen content, Thanh added.

Vietnam’s fish sauce market is valued at about US$501 million, with over 70,000 metric tons of the condiment produced in 2015.

The country consumes over 300 million liters of fish sauce a year on average, which translates into nearly four liters per person.

Vietnamese startup wants motorbike taxis to fight back Uber, Grab

Its founder believes that foreign ride-hailing services help many locals, but also threaten so many others.

A new startup project is taking shape in Ho Chi Minh City promising to provide support to Vietnamese xe om motorbike taxi drivers who feel excluded or threatened by the rise of services such as Grab and Uber.

Vu Tuan Anh, who leads the yet-to-be named project, told the Saigon Times that the arrival of Grab and Uver has been generally welcomed by passengers and has created jobs for many people, particularly students and part-time workers.

But many xe om drivers, he said, have had their livelihoods threatened by these modern platforms.

“I started to wonder why IT engineers in Vietnam didn’t create something similar to help 'traditional' xe om drivers,” Anh said, adding that many drivers could not meet technical requirements to join Grab or Uber networks.

“These drivers are vulnerable members in our society,” he was quoted as saying. “They are even more vulnerable now due to Uber Bike and Grab Bike.”

Anh said his non-profit platform will function similarly to that of Grab and Uber but drivers will only be asked to pay a fixed monthly fee of between VND30,000-VND60,000, instead of 20%-30% of their income.

It remains unclear if drivers joining his network will be given phones with internet access.

The project, still in the fund-raising phase, will be launched first in District 1 before expanding to other parts of the city. Anh said he will also add delivery and student transport services to help improve income for drivers.

Vietnam named a ‘role model’ of growth for neighbors

An ANZ economist believes the country’s economic journey so far can provide good lessons for Cambodia, Laos and Myanmar.

Vietnam has been once again hailed for its strong economic performance as experts around the world continue looking for success stories to help small economies catch up with advanced nations.

In a new Bloomberg report, Eugenia Victorina, an economist at Australia & New Zealand Banking Group in Singapore, described Vietnam as a “role model” which has transformed its economy from a mainly farming one to an exporter of electronic goods, like smartphones.

“Vietnam provides the template for an export-led growth from agricultural," Victorina said. "We have seen Myanmar, Laos, and Cambodia trying to imitate Vietnam’s model of luring FDI to prop up their export capacity.” 

Cambodia, Laos and Myanmar, which are among Asia’s least developed countries, are projected to have the most rapid expansions in Asia from 2017 to 2019, sustaining growth rates of close to 7%, according to the World Bank. The combined size of the three economies is less than US$100 billion, about a third of neighbors like Singapore, Malaysia and Philippines.

“The promise of transforming the Mekong into a manufacturing hub has a lot of potential,” Victorina was quoted by Bloomberg as saying.

The World Bank last week said Vietnam’s economy would expand at an average of 6.3% in the next three years, with all categories of demand buoyed by strong foreign direct investment and manufacturing exports.

The bank said that for Vietnam, reforms to state-owned enterprises, including measures that enhance transparency and governance, “could reduce pressure on fiscal resources.”

Vietnam reported economic growth of 6.21% last year, among the fastest in the world. That came even after the country was hit by several headwinds including a prolonged drought and a devastating coastal pollution disaster in the first half of the year.

The country, traditionally known as a top supplier of products such as coffee, rice, garment and footwear, has recently attracted more investment from tech giants such as Intel and Samsung. Phones and computer products are now among its top export earners.

Vietnam world’s second-largest sport shoe exporter

Vietnam is frequently listed among the world’s top 20 footwear producers, with the Southeast Asian country now positioned among the top ten leading global footwear exporters, an industry association has said.

Vietnam is now officially the world’s second largest footwear exporter by volume, just behind China, the Vietnam Leather Footwear and Handbag Association (LEFASO) said, citing recent statistics from the World Footwear Association.

The country supplies more than one billion footwear products of all kinds per year, accounting for 7.3% of the global market share.

Vietnam is also the world’s second-largest exporter of sport shoes, and the No.3 global exporter of leather footwear. As for other categories, Vietnam ranks seventh on the world tally.

“Vietnam is selling all of these products at prices 1.35 to 2.8 times higher than China on average,” LEFASO deputy chairman Diep Thanh Kiet said.

Kiet said the US remains the world’s largest footwear buyer, importing some 2.48 billion pairs per year, while China consumes more shoes than any country on earth at 23 billion pairs a year, or an average of 2.5 pairs per person.

Vietnamese localities enhance ties with Canadian investors

A conference on enhancing partnership between Vietnamese localities and Canada took place in Hanoi on January 16, gathering 200 government officials, business delegates and representatives of Canadian non-governmental organisations.

The event was meant to create an opportunity for Vietnamese localities to connect with the Canadian side and form partnerships, particularly in three prioritised sectors – trade-investment, development cooperation, and education-training.

At the conference, representatives of Vietnamese localities also informed Canadian non-governmental organisations about their needs for development funding to alleviate poverty and boost education.

Most participants agreed that current cooperation between Vietnam and Canada still felt short of potential. They called on local governments to play a more active role in attracting and facilitating investment and assistance from the North American country.

Deputy Foreign Minister Ha Kim Ngoc affirmed that Vietnam lays stress on strengthening relations with Canada, adding that trade is a highlight in bilateral ties.

Vietnam is Canada’s biggest trade partner in the ASEAN region, with two-way revenue reaching US$4.6 billion in 2015 and US$3.4 billion in the first 9 months of 2016. The two nations planned to push the figure to US$10 billion in the next ten years. 

Canada has so far channelled US$5.28 billion in 149 projects in Vietnam, ranked 14th out of 112 countries and territories investing in Vietnam.

Canadian Ambassador to Vietnam Ping Kitnikone recommended Vietnamese localities create favourable conditions for Canadian investors in terms of mechanism, policy and human resources. 

The dynamism and active role of local governments are a decisive factor to the attraction of investment, he said.

Chairman of the Hanoi People’s Committee Nguyen Duc Chung vowed to create best conditions for Canadian and overseas Vietnamese to invest in the city in the long term.

Canada has 23 projects, worth US$7.7 million, in the capital city.

Ka Lam Retreat Ninh Van Bay opens in Nha Trang     

Ka Lam Retreat Ninh Van Bay opened its doors in a soft opening phase on Monday in the picturesque Ninh Van Bay in the tourist resort city of Nha Trang.

Situated on the peaceful jungle peninsula of Ninh Van Bay and encircled by towering mountains, this elegant jungle hideaway offers its guests the ultimate privacy and a sense of complete isolation. But despite its remote location, the elegant five-star resort offers unique experiences with eco measures, including purified spring water from the waterfall, organic vegetables and an on-site kitchen garden.

Nestled amid a secluded tropical jungle with a natural waterfall and stunning beachfront, there are 33 luxurious villas in a contemporary design made of timber, creating a back-to-nature feel.

Overlooking the breathtaking ocean and the mountains with waterfalls, these tastefully furnished villas feature several modern facilities that are aimed at pleasing the guests. Other comforts include outdoor bathtubs (Jungle Rock Villa only), plunge pools (except Jungle Rock Villas) and private butlers.

Built on a large rock formation above the sea, the Sen Restaurant offers fresh seafood and an authentic Vietnamese dining experience, along with western cuisine. Overlooking the beach, the restaurant creates an ambience that makes one feel one is dining in the middle of the sea.

Located in a green jungle near the waterfall, the Jungle Spa provides a relaxing and rejuvenating experience to balance your mind and body with Vietnamese special treatments and an extensive menu of traditional therapies for the body and mind.

The resort also offers private and fully-equipped meeting facilities for up to 60 guests in a natural and inspiring setting.

Jerri Povibool, An Lam Retreats vice president for business development & marketing, said: “We offers many activities on the island, such as a day trip picnic to the waterfalls, kayaking, snorkeling, visiting nearby lobster farms nearby and a sunset cruise in the bay. Whether it be a honeymoon for newlywed couples, a getaway for two, a holiday with friends or an appreciation trip, our team of professional and hospitable staff will make your stay most comfortable.”

On the occasion of the soft opening, Ka Lam Retreat Ninh Van Bay is offering a 20 per cent discount from the Best Available Rates starting from VND7,520,000 per night for two people in the Jungle Rock Villa, including complimentary round trip transfers (joint) from the airport to the resort, round trip boat transfers from the mainland to the resort and 10 per cent discount on F&B at the resort. This promotion is valid until March 31, 2017.

VNĐ320 trillion paid via NAPAS system in 2016

Total transaction value paid via the system of the National Payment Corporation of Việt Nam (NAPAS) reached VNĐ320 trillion (US$14.1 billion) in 2016, nearly doubling from 2015.

The proportion of cash withdrawal transactions via the system in 2016 also declined 12.5 per cent against 2015.

Nguyễn Kim Anh, deputy governor of the State Bank of Việt Nam (SBV), required NAPAS to affirm its pioneering role in construction and development of the nation’s payment system, as 2017 is considered an important transitional year to implement the banking industry’s projects on enhancing the accessibility of bank services and boost non-cash payments in the 2016-20 period.

NAPAS, whose majority shareholders include SBV and 15 large commercial banks in Việt Nam, is the first and only intermediary payment service provider being granted a licence by the central bank for providing switching and electronic clearing and settlement services in Việt Nam.

NAPAS is operating and managing an inter-bank connection system with 16,800 ATMs, 220,000 POS and 90 million domestic cards of 43 domestic commercial banks and foreign banks operating in Việt Nam. NAPAS also provides e-commerce services to more than 200 merchants of airlines, telecommunications, hotels, tourism and other electronic payment services.

With the task of completing retail payment infrastructure allocated by the central bank, NAPAS is implementing and building the standard for domestic chip cards for the entire market; building Automated Clearing House (ACH) research - the system of electronic clearing automation for retail transactions; and proposing solutions for the development of non-cash payments in Việt Nam.

Tra fish exports hit US$1.66 billion

Tra fish (Vietnamese catfish) exports in 2016 increased by 7% to US$1.66 billion, accounting for 24% of total seafood export value.

Vietnamese tra fish products have been exported to 137 markets in the world. They occupied the largest market shares in the US (23%), then China (17%) and the EU (16%).

Exports to the US reached US$354.2 million in the first 11 months of 2016, up 22.2% against the same period of 2015. In 2016, anti-dumping duties and the catfish inspection programme are the two biggest barriers for Vietnam products to the demanding market. Currently, only 2 to 3 Vietnamese businesses are able to ship products to the US.

Tra fish exports to the EU dipped 9.9% to US$238.8 million in the period, a decline for three consecutive years.

By the end of November last year, exports to China- Hong Kong had skyrocketed by 84.4% to US$270.6 million. China-Hong Kong might be the biggest importer of Vietnam tra fish this year if the US imposes stricter barriers and export to China-Hong Kong maintains its growth.

The Ministry of Agricultural and Rural Development forecast tra fish exports to major markets like the US, China and ASEAN will continue to grow in the first half of this year while exports to the EU will drop around 3-5%.

Vietnam is expected to earn around US$1.7 billion from tra fish exports in 2017, up around 4%.

Dai-ichi Life Vietnam, Bac A Bank signed bancassurance contract

Life insurer Dai-ichi Vietnam on January 16 held the ceremony to sign the contract to cooperate with Bac A Bank to provide bancassurance.

Accordingly, starting today, Dai-ichi Life Vietnam is going to provide the An Tam Hung Thinh and An Phuc Hung Thinh products of Dai-ichi as well as related products according to customers’ choice, through Bac A Bank’s network of branches.

Dai-ichi Life Vietnam is going to introduce to customers buying its insurance products the financial products provided by Bac A Bank. Meanwhile, Bac A Bank is going to increase the distribution the financial protection products of Dai-ichi Life Vietnam.

“The signing of the agreement with Bac A Bank shows our determination to increase efficiency and expand our customer base even more in 2017,” said Tran Dinh Quan, Dai-ichi Life Vietnam’s general director.

“This cooperation is going to meet the increasingly high demand of customers for investment and financial protection products,” said Dang Trung Dung, standing deputy general director of Bac A Bank.

Founded in January 2007, Dai-ichi Life Vietnam has built a solid foundation and maintained its position as one of the four leading life insurers in Vietnam in terms of total premium, serving more than one million customers through a staff of 800 employees and 53,000 professional financial consultants.

Bac A Bank was founded in 1994. The general director, Thai Huong, is also chairwoman of dairy producer TH Group.

Vietnam named a ‘role model’ of growth for neighbors

An ANZ economist believes the country’s economic journey so far can provide good lessons for Cambodia, Laos and Myanmar.

Vietnam has been once again hailed for its strong economic performance as experts around the world continue looking for success stories to help small economies catch up with advanced nations.

In a new Bloomberg report, Eugenia Victorina, an economist at Australia & New Zealand Banking Group in Singapore, described Vietnam as a “role model” which has transformed its economy from a mainly farming one to an exporter of electronic goods, like smartphones.

Vietnam provides the template for an export-led growth from agricultural," Victorina said. "We have seen Myanmar, Laos, and Cambodia trying to imitate Vietnam’s model of luring FDI to prop up their export capacity.” 

Cambodia, Laos and Myanmar, which are among Asia’s least developed countries, are projected to have the most rapid expansions in Asia from 2017 to 2019, sustaining growth rates of close to 7%, according to the World Bank. The combined size of the three economies is less than US$100 billion, about a third of neighbors like Singapore, Malaysia and Philippines.

“The promise of transforming the Mekong into a manufacturing hub has a lot of potential,” Victorina was quoted by Bloomberg as saying.

The World Bank last week said Vietnam’s economy would expand at an average of 6.3% in the next three years, with all categories of demand buoyed by strong foreign direct investment and manufacturing exports.

The bank said that for Vietnam, reforms to state-owned enterprises, including measures that enhance transparency and governance, “could reduce pressure on fiscal resources.”

Vietnam reported economic growth of 6.21% last year, among the fastest in the world. That came even after the country was hit by several headwinds including a prolonged drought and a devastating coastal pollution disaster in the first half of the year.

The country, traditionally known as a top supplier of products such as coffee, rice, garment and footwear, has recently attracted more investment from tech giants such as Intel and Samsung. Phones and computer products are now among its top export earners.

Cashew sector predicted to keep stable growth

Vietnam’s cashew nuts exports in 2016 posted rapid growth, reaching 348,000 tonnes, generating a year-on-year increase of 19.1 percent in export turnover, heard a conference in Ho Chi Minh City on January 16. 

2016 marks the 11th consecutive year Vietnam has led the world in exporting cashew nuts, accounting for 28 percent and 42 percent of the total volumes of semi-processed and processed cashew nuts, respectively, traded in the global market in the year. 

However, the biggest challenge facing Vietnamese cashew processors is their dependence on imported raw cashews. 

Cashew enterprises imported 1.06 million tonnes of raw cashews in 2016, the largest ever volume, up 14 percent against the previous year. 

The International Nut and Dried Fruit Council forecasted that global demand for nuts in general and cashew nuts in particular will continue to stably increase with annual average growth of 10 percent as it is has been proven that the nuts are good for health. 

The Vietnam Cashew Association (Vinacas) predicted that 2017 will be a favourable year for the cashew sector. However, it also mentioned difficulties that the industry is likely to face such as unfavourable weather. 

Vietnam is set to export 360,000 tonnes of cashew nuts to foreign markets with a turnover of 3 billion USD in 2017, a year-on-year increase of 3.4 percent in volume and 5.6 percent in value. 

At present, the US, the Netherlands and China are the largest importers of Vietnamese cashew products.

However, many businesses are concerned that the purchase power for cashew nut in the US will decrease due to a price hike expected in February this year. 

Meanwhile, the cashew sector will face growing competition from Chinese businesses. Vinacas Secretary General Nguyen Hoang Giang said Chinese firms have built a number of cashew processing factories in areas bordering Vietnam.

According to Vinacas vice chairman Ta Quang Huyen, cashew nut prices reached their peak at the end of 2016 and are expected to stop or decline in 2017.

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