Q3 growth rises faster than expected, says ANZ

The economic growth rate of Vietnam saw a strong increase in Q3 to 5.62%, higher than the figure recorded same period last year (5.1%), according to the latest report released by the Australia-New Zealand Banking Group (ANZ).

ANZ forecast Vietnam’s 2014 growth may hit 5.6% and see steady yet slow improvement to 5.8% in 2015.

Growth in the medium term is expected to stay below long-term average with both the IMF and ADB forecasting 5.5% growth in 2014, and the World Bank expecting growth a tad lower at 5.4%.

With inflation still on a downward path, price savvy consumers may be delaying purchases in anticipation of even lower prices, said ANZ.

According to the bank, the industrial production (IP) index is expanding slower than the expansion over the same period in 2013. However, the recovery in the Purchasing Managers’ Index (PMI) to 51.7 in September (Aug: 50.3) remains supportive of the manufacturing sector.

Credit growth will likely accelerate through Q4. Loan growth reached 7.26% as of end September, from 4.33% in the previous month. Despite the subsequent rise in rates, liquidity is still supportive of economic activity, ANZ predicted.

Regarding foreign direct investment (FDI), ANZ reported that as of September 20, there were 1,152 newly approved projects that brought in more than US$7.64 billion in registered pledged capital. Some 417 existing projects received additional funding worth US$3.54 billion, taking total FDI to US$11.18 billion. FDI into manufacturing is still taking the lion’s share, keeping the outlook on exports promising, the bank noted.

Vung Ang 3 Thermal Power Plant to be constructed

The General Department of Energy (GDE) and Samsung C&T Company on October 14 signed a memorandum of understanding on developing Vung Ang Thermal Power Plant 3’s build–operate–transfer (BOT) project.

The GDE said the plant, with a capacity of 1,200MW and 2 generator groups, will be built at Vung Ang Industrial Zone in Ha Tinh province.

It is expected to put the first generator into operation in January 2022 and the whole plant in July 2022.

Samsung C&T Deputy General Director Joon Suk Choi said this is the first thermal power project that Samsung invested in Vietnam. The positive cooperation and support from the Vietnamese government and relevant ministries and branches, particularly the Ministry of Energy and Ha Tinh province, have facilitated the Company’s survey and research activities.

Int’l textile industry exhibition to open in HCMC

The 14th Vietnam International Textile and Garment Industry Exhibition (VTG 2014) will take place in Ho Chi Minh City from October 29 to November 1, featuring machinery, equipment and materials for textile production.

The event, to be held at the Tan Binh Exhibition & Convention Centre (TBECC), is expected to attract more than 360 domestic and foreign enterprises from 10 countries and territories including Hong Kong, India, Japan, the Republic of Korea, Singapore, Taiwan, Turkey, the US, China, and host Vietnam.

Within the framework of the event, a wide range of seminars and meetings between textile suppliers and enterprises will also be held.

VTG 2014 will create opportunities for Vietnamese enterprises to exchange experiences, improve their competitiveness and seek new business partners.

The exhibition is co-organised by Vietnam National Trade Fair & Advertising Joint Stock Company (VINEXAD), the Association of Garments, Textiles, Embroidery and Knitting (AGTEK), and the Vietnam Textile and Apparel Association (VITAS).

HCM City hosts Vietstock 2014

Hundreds of businesses from Vietnam, the Czech Republic, Denmark, the UK and the Netherlands are displaying their products, technologies and equipment at the ongoing International Feed, Livestock and Meat Processing Show (Vietstock 2014) in HCM City.

At the opening ceremony on October 15, Hoang Thanh Van, head of the Husbandry Department under the Ministry of Agriculture and Rural Development, said the event provides a good chance for domestic and foreign businesses to introduce their scientific and technological achievements and new technologies in the livestock industry. It also helps domestic scientists, managers and breeders share experience and update advanced technologies.

Through the show, foreign investors will understand more about Vietnam’s livestock industry, Van added.

M.Gandhi, Managing Director of UBM Asia Company in Southeast Asia said the exhibition’s theme “Restructuring the Livestock Industry for Sustainable Development” is in line with Vietnam’s development. Restructuring the industry will help Vietnam spur productivity and the quality and competitiveness of products, and meet export requirements in ASEAN and other markets.

During the event, which will run untill October 17, a number of seminars will also be held, with a focus on hot issues of the livestock industry, such as animal feed quality management and safety, opportunity and challenges to the meat processing industry in Vietnam, solutions for epidemics’ challenges, and productivity improvement through nutrition.

The livestock industry grew 6-7% annually over the last decade. Its total meat quantity rose from 1.83 million tonnes in 2000 to 4.33 million tonnes in 2013. The result can be attributed to application of advanced technology.

Master plan to boost growth in central economic region approved

The Prime Minister approved a master plan for socio-economic development in the central key economic region by 2020 with a view to becoming a dynamic region with rapid, sustainable growth, thus creating momentum for development in the northern and coastal central regions.

The central key economic region comprises Danang city and the provinces of Thua Thien-Hue, Quang Nam, Quang Ngai and Binh Dinh.

The plan sets the regional economic growth rate target at 8% by 2015 and around 9% for 2016-2020. Per capita gross domestic product is to reach VND80 million (US$3,600) by 2020.

According to the plan, the localities will develop their marine industries, such as mechanics, shipbuilding and maintenance. Notably, the petro-chemical industry will become an economic pillar, making the region one of Vietnam’s biggest petro-chemical hubs.

More investments will be made in electronics and information technologies, which are expected to boost the development of other industries.

At the same time, major industrial centres will be set up in Quang Nam, Quang Ngai and Binh Dinh, while industrial clusters will be built along the inter-provincial roads to facilitate the neighbouring Central Highlands’ access to consumer goods and transport agricultural products to processing facilities.

Meanwhile, small- and medium-sized industries, such as construction materials, food processing and traditional crafts will also be encouraged.

Under the master plan, the central key economic region will tap into its tourism potential and become part of the domestic and Southeast Asian tourism network, which will also include Thailand, Malaysia and Indonesia.

The target localities will focus their tourism industry on cultural heritage and historical sites, such as Hue imperial city, Hoi An ancient town, and My Son relic site, along with the region’s coastal landscapes.

Famous car brand names to be showcased in VN

The 10th Vietnam Motor Show 2014 (VMS 2014) will take place at the Saigon Exhibition and Convention Centre (SECC) in Ho Chi Minh City from November 19-23.

The show’s organising board announced at a press conference in the city on October 15 that the event will showcase numerous world’s well-known car brand names, such as Ford, GM (Chevrolet), Hino, Honda, Mercedes-Benz, Suzuki, Toyota, Mitsubishi, Fuso, Audi, BMW & Mini Cooper, Land Rover& Jaguar, Porsche, Nissan & Infiniti, and Lexus.

Latest models and innovative technologies which are environmental friendly and convenient for customers will be introduced.

Covering 12,000 square meters, VMS 2014 is an opportunity for car makers to expand their business, contributing to the development of Vietnam’s domestic automobile industry.

The show is expected to draw more than 150,000 visitors.

AEON to cooperate with Fivimart and Citimart

Japanese retail giant AEON recently announced plans to cooperate with Vietnamese leading supermarket retailers Fivimart and Citimart.

Fivimart and Citimart operate a series of 15 and 26 stores respectively throughout Vietnam. The cooperation with two strong businesses will help the Aeon group expand its activities to urban areas in the country’s two most highly developed economic regions.

According to Japan's newspaper Keizai, the cooperative plan aims to develop products with famous brands, fully tap the source of commodities and build a supply network.

In the initial stages, through the two businesses, AEON will sell its food and consumer goods under the top value brand and coordinate with local businesses to develop products.

The move will also help AEON set up a consumption network of goods and reduce the amount of initial capital outlay while simultaneously laying the groundwork for a plan by Aeon to construct a series of shopping malls in Vietnam in the future.

Platform supports Japanese SMEs operating in Vietnam

The Vietnam-Japan Business Association (VJBA) organised a forum to support Vietnamese and Japanese small- and medium-sized enterprises (SMEs) in Hanoi on October 14.

The forum, the first of its kind, served as a bridge for the two countries’ SMEs to boost their collaboration.

In addition, it provided Japanese businesses with useful information on Vietnam’s investment environment as well as helped them overcome any difficulties.

According to VJBA Chairman Dinh Ngoc Hai, Vietnam has recently seen changes in Japanese investments, with a greater number of SMEs operating in services, information technology, human resources, agriculture and support industries.

Since small- and medium-sized enterprises differ significantly from large corporations, there is a need for Vietnamese authorities to develop more effective approaches towards SMEs, he said.

Official government statistics show that Japan was Vietnam’s largest source of ODA from 1993-2013. Between 2011 and 2013, Japan topped the list of 101 countries and territories investing in Vietnam. Especially in 2012, Japanese investments accounted for half of the total foreign direct investment in the country.

MoIT offers advice over African deals

The Ministry of Industry and Trade (MoIT) recently proposed measures that Vietnamese companies should take to avoid risks whenever they were seeking business opportunities in Africa.

The measures were made following several instances where African companies received payments from Vietnamese importers but failed to deliver the purchased products.

The ministry urged Vietnamese companies to limit market information research and transactions with clients on the Internet. The companies should instead be actively seeking business opportunities using official websites such as www.vietnamexport.com and www.moit.gov.vn, the ministry's e-portal.

They should also contact the ministry's Africa department, the West Asia and South Asia market departments of African and Vietnamese embassies, and the trade counsellors of both countries.

Regarding payment methods, the ministry warned that companies should refrain from using the practice of Document Acceptance (D/A) with African clients, as exporters could risk losing goods.

Vietnamese companies should also ask their partners to use irrevocable letters of credit opened at prestigious banks whenever making payments and limit the use of deferred payments. If the Document Against Payment (D/P) method is used, Vietnamese companies should ask for deposits to ensure safety, at a rate of 30 per cent.

Products imported from Africa should be checked before boarding.

Africa is an important supplier of raw materials for Viet Nam. Figures from the Viet Nam General Department of Customs show that the country imported US$742.7 million from Africa in the first half of this year, representing a 30-per cent year-on-year increase. Major imports include cashew, cotton, timber and scrap metals.

Deal with Cuba targets new highs in economic relations

The Viet Nam-Cuba Inter-Governmental Committee for Economic, Commercial, Scientific and Technological Co-operation convened its 32nd meeting in Havana, Cuba on Monday, seeking ways to raise bilateral economic ties on par with outstanding political relations.

Cuban Minister of Trade and Foreign Investment Rodrigo Malmierca Diaz noted that during Prime Minister Nguyen Tan Dung's visit to Cuba in March this year, the two countries had pledged to further their traditional friendship as well as cooperation in economics, trade and investment.

To realise this, both sides had signed a medium-term economic co-operation programme, identified specific targets and set co-operative orientations for the next five years towards diversifying economic and trade ties, he added.

Reviewing the implementation of agreements reached at previous meetings, Minister Malmierca said that bilateral trade is yet to match existing potential, although good progress has been made recently.

The Vietnamese and Cuban Governments, therefore, are determined to lift economic ties to a higher level and bring them in line with the fine political relations between both countries, he said.

Viet Nam is Cuba's second largest trade partner in Asia as also its leading rice supplier, the minister said, expressing his hopes for more Vietnamese investments in oil and gas, tourism, and industrial sectors.

At the meeting, Vietnamese Minister of Construction Trinh Dinh Dung reiterated the nation's consistent stance on supporting the Cuban people's revolutionary cause. He also highlighted Cuba's valuable support for Viet Nam's past struggles for national liberation as well as its ongoing development.

He said that Cuba's new economic policies and measures, especially its Foreign Investment Law and preferential investment policies for the Mariel Special Development Zone (ZEDM), would lay a firm foundation for attracting foreign investment and realising the island nation's socio-economic development goals.

Canadian market offers opportunities

Vietnamese companies have yet to exploit the full potential of the Canadian market, which was described as lucrative because of its significant import volume.

At a conference held in the capital city yesterday, Hoang Van Dung, vice chairman of the Viet Nam Chamber of Commerce and Industry, said that ever since the two countries signed a bilateral trade agreement in 1995, trade relations between Viet Nam and Canada experienced a 20-fold increase, reaching US$2.2 billion in 2013.

Last year, Viet Nam enjoyed an export surplus of more than $1 billion using key items such as textiles and garments, agricultural and wood products, as well as footwear, seafoods and computers.

However, Canada has yet to be included in the list of Viet Nam's 20 largest export markets and accounted for less than one per cent of exports, said Zaki Munshi, Project Manager Asia at TFO Canada, a non-profit non-government organisation that facilitates access to the Canadian marketplace.

Viet Nam's main exports to Canada were somewhat different from its global exports, which were focused on crude petroleum and rice, Munshi noted.

To increase trade with Canada, Munshi suggested that Vietnamese companies identify other exportable products and services with potential in Canada while seeking to maintain their competitive advantage.

The companies should also make greater efforts to explore the full potential of the seafood and electronics products segments, Munshi added. He also stressed the importance of registering companies' business profiles and export offers on TFO Canada's website, where less than 30 Vietnamese companies were currently registered.

At the event, participating Vietnamese companies also learned more about Canada's consumer and market trends, legal environment, tariff treatment and modes of transport.

According to the Ministry of Industry and Trade's American Market Department, exchanges of government and business delegations and trade information should be accelerated.

VN to import coal in bid to meet demand

The domestic coal supply still meets the demand, but the country will have to import coal from 2016, according to the Viet Nam National Coal and Mineral Industries Holding Corporation.

The corporation said that in the long run, the demand for coal in the domestic market will rise sharply, especially after 2018 for electricity generation that might need 50 million tonnes by 2020.

The rising demand will require the country to import coal. It is estimated that coal imports will reach a volume of 20 to 30 million tonnes by 2020, the corporation said.

To prepare for the rising demand, besides signing import contracts with foreign coal suppliers, the corporation has also planned to co-operate in coal mining with foreign partners in coal-rich countries in a move to improve the supply of coal in the future.

The government has recently approved the inclusion of at least eight projects in the country's coal industry development planning for 2020 to 2030 to meet the domestic demand, especially for electricity.

Viet Nam's electricity demand is expected to rise by an average of 14 per cent a year during the 2015-20 period, while coal is expected to play an increasingly important role in meeting that demand. Viet Nam has been relying solely on domestic coal, but supplies are proving to be increasingly scarce and more costly to retrieve.

The majority of Vietnamese coal is mined in the northern region, including Quang Ninh province, the coal hub, and in the Red River basin where most of its reserves remain untapped.

Businesses, customs authorities to unite against red tape

The Government is determined to make custom procedures quick and transparent in line with the World Trade Organisation Trade Facilitation Agreement (TFA) which Viet Nam signed in 2013.

To further promote the reform of customs administrative procedures, the US Agency for International Development (USAID), General Department of Viet Nam Customs and Viet Nam Chamber of Commerce and Industry (VCCI) conducted a seminar on "Reforming administrative procedures: customs-businesses enforce agreements to facilitate trade of the WTO."

The workshop aimed to enhance the understanding of concerned agencies and businesses about the commitment on TFA, as well as the challenges facing Viet Nam's economy, and determine the role of Vietnamese customs in honouring these commitments.

According to Nguyen Thi Thu Trang, director of the Centre for WTO-VCCI, tariffs and customs were the two doors facing all businesses if they wanted to export goods. Therefore, the reform of these two doors are a particular concern of businesses.

Trang said the Government had carried out the resolution of problems relating to tariff barriers through free trade, bilateral and multilateral agreements.

In customs reform, the highest expectation was that all WTO members would successfully negotiate the reform of customs procedures. This was an important milestone, she added.

Through this seminar, businesses are expected to better understand the country's commitments and benefits under the TFA. From that point, businesses and customs can work together to reform customs procedures and make their import-export activities more comfortable.

Nguyen Vinh Quang, a representative of a State Governance project, said the reduction of paper work for customs procedures was needed to facilitate trade and economic development.

If customs procedures are reduced by one day or 24 hours, it will have a huge impact on the economy and lead to savings of as much as US$1.6 billion, according to Quang.

Recently, the Government issued Resolution 19 to cut the time and cost of customs procedures and improve the business environment to a level that is at par with six other countries in the ASEAN region.

Viet Nam now ranks 65th among 180 nations in conducting customs procedures. However, it takes 21 days to complete import-export procedures in the country while it takes only 11 days in Malaysia.

According to Resolution 19, if Viet Nam cut the time for carrying out customs procedures to the level of other Asean countries, about 13 to 14 days, the country's GDP will increase by about 14 per cent.

Quang expressed hopes that the implementation of Resolution 19 and TFA business and customs enforcement task forces would work together to benefit the business community.

A representative said Viet Nam Customs would continue to actively participate with stakeholders, state agencies and the business community to implement the TFA in the most effective manner.

VN anticipates rice export challenges

The Viet Nam Food Association (VFA) has predicted 2015 to be a tough year for Viet Nam's rice exporters in the face of fierce competition from their Thai rivals.

At a conference that the Ministry of Agriculture and Rural Development (MARD) organised in HCM City last Friday to review the country's rice production in 2014, VFA Vice President Pham Van Bay also revealed that Viet Nam would have to compete with Asian and African rice exporters in the future.

During the harvest season for the winter-spring crop, Thailand will be joining India, Pakistan, Myanmar and Cambodia in providing fiercer competition in rice exports even as world demand for rice imports remains vague, according to the association.

Next year, Vietnamese rice exporters will start feeling the pressure of competition, especially from their Thai counterparts.

Thailand has concentrated on recovering traditional rice markets in Africa and expanding its markets in Asia, especially the Philippines, Indonesia and China.

The association also noted that Thailand was now the world's largest rice exporter and was expecting to export 11 million tonnes of the staple this year, reported chinhphu.vn.

From now until the end of this year, the price of rice exports will likely remain at current levels or see a slight decrease because of easing demand from export markets.

Enterprises under the VFA are striving to sell all rice bought from farmers while balancing rice volumes for export in the remaining months of the year and early next year.

According to the association, the price of the summer-autumn crop this year has remained high in the Cuu Long (Mekong) Delta provinces in the absence of a programme for purchasing rice for temporary stockpile because traders have purchased rice for export through the border gates to China.

But the price of the winter-spring crop could not remain as high as that of the summer-autumn crop because of unexpected export demand in the early part of next year.

In a worst-case scenario, the ministry will propose a programme for purchasing rice for temporary stockpile to the Government to avoid a decline in rice prices in the domestic market that will affect farmers' profits, the association said.

Reports from the VFA showed that in the first nine months of 2014, Viet Nam shipped 4.8 million tonnes of rice abroad with a freight-on-board (FOB) value of US$2 billion, representing decreases of 7.81 per cent in volume and 7.2 per cent in value compared with the same period last year.

Domestic rice producers hope to export 1.4 million tonnes of rice in the last quarter of 2014, bringing the entire annual export volume to 6.3 million tonnes.

This year, the cultivation area of the southern region, the country's key rice producer, was estimated to be 4.7 million hectares, with an estimated yield of 27.8 million tonnes, an increase of 916,000 tonnes against that of last year, according to figures from the MARD.

Ha Nam attracts $1b in foreign direct investment

The latest US$17-million paper factory of Nittoku Company Ltd of Japan lifted the total amount of foreign direct investment (FDI) in this northern province to $1,056 billion.

The province has focused on policies creating favourable conditions for enterprises to attract FDI, said Nguyen Van Oang, director of the provincial planning and investment department.

The province is now in the list of the top 10 provinces which have attracted the largest FDI nationwide.

Nippon Paint opens third plant in Viet Nam

Nippon Paint Vietnam marked the opening of its third plant in the country with a grand ceremony in this province yesterday.

The plant, situated on a 60,000sq.m site, has a registered investment capital of $14 million for the next five years and an annual production capacity of 15,000 tonnes. Up to 500 new jobs will be created, providing a huge boost to the company and the Vietnamese economy.

"With automobile and motorcycle manufacturing developing strongly in recent years, especially in Ha Noi and Vinh Phuc, we are seeing increased opportunities to meet the needs of customers," said Fujita Tetsuro, chief operations officer of NIPSEA Management Company.

Nippon Paint Vinh Phuc (NPVP) plans to support the needs of the domestic automobile and motorcycle manufacturing industry and enlarge production to encompass coil coating, general industrial-use coating, heavy-duty coating and other coating fields.

Vietnamese traditional handicrafts were the feature attraction at the Fourth Handicraft Trade Fair of the Southern Common Market (MERCOSUR) staged in Puerto Iguazu from October 8-13.

Speaking at the event, Vietnam Ambassador to Argentina Nguyen Dinh Thao expressed his wish that the event will help promote cooperative relations between Quang Ninh province and Misiones and spawn increased tourism to Vietnam.

He said both countries were blessed with world beautiful natural wonders, namely Ha Long Bay in Vietnam and Iguazu Falls in Argentina.

At a working session with Ambassador Thao during the event, Misiones Minister of Tourism, Sergio Dobrusin revealed the Mayor of Misiones Maurice Closs is anticipating a working visit to Quang Ninh in the near future.

While visiting Vietnamese pavilions, Mayor of Pureto Iguazu Marcelo Sanchez emphasized the need to set up cooperative relations among handicraft production businesses.

A scientific seminar was held in Ho Chi Minh City on October 14 to discuss opportunities for developing sustainable agribusiness in Vietnam.

The event was co-organised by the Food Agri and Aqua Business Sector Committee (FAASC) under the European Chamber of Commerce and the EU-Vietnam Business Network. It provided a clear vision for the agribusiness sector in the context of Vietnam’s deep and broad integration into the world economy.

The agricultural sector plays a vital role in the country’s economy, accounting for nearly 20 percent of the gross domestic product (GDP). However, it still faces numerous major challenges, especially with regard to food security, experts stated during the seminar.

FAASC President Gabor Fluit said Vietnam would need to implement sustainable development strategies to be able to feed approximately 100 million Vietnamese citizens and participate in a global market with over 6 billion people in the future. The sustainable development framework would help the country overcome a number of challenges and make full use of the opportunities of globalisation.

Alain Cany, the Chairman of the Jardine Matheson Vietnam Group, pointed to a reduction in the number of agricultural investment projects in Vietnam in recent years, which contributed to a decline in the country’s agricultural exports.

He suggested the country focus on the application of advanced technologies, vocational training and skills development.

During the seminar, European and Vietnamese experts discussed measures to enhance the development of the agricultural sector and ensure sustainable food security.

Public-private partnerships to boost customs procedure reform

Cooperation between the public sector and businesses on customs procedure reform was discussed at a seminar co-organised by the Vietnam Chamber for Commerce and Industry (VCCI) and the United States’ Agency for International Development (USAID) in Hanoi on October 14.

The seminar aimed to engage the public sector and enterprises in the implementation of the World Trade Organisation’s Trade Facilitation Agreement (TFA) signed in 2013.

At the event, WTO-VCCI Centre Director Nguyen Thi Thu Trang stated that Vietnam would benefit substantially from customs procedure reforms via the implementation of free trade agreements and multilateral agreements signed with WTO member states.

She expressed her hope that the seminar would publicise the advantages of implementing the TFA and encourage businesses to get involved.

According to Nguyen Vinh Quang from USAID, customs procedure reforms are imperative to facilitating trade, developing the national economy and increasing GDP.

Public-private partnerships would be strengthened through implementing the TFA and the Government’s Resolution 19 on cutting paperwork processing times and costs to bring Vietnam’s business climate in line with that of other ASEAN countries, Quang said.

Meanwhile, a representative from the General Department of Vietnam Customs said the department would actively work with other stakeholders to implement the agreement in the most effective manner.

A delegation from the Board of Governors at the Asian Development Bank (ADB) led by its Executive Director Maliami bin Hamad paid a working visit to Vietnam from October 10-13.

During the visit, the delegation had working sessions with the State Bank of Vietnam , the Ministry of Planning and Investment, and the Ministry of Finance as well as visited some ADB-funded projects in the central province of Quang Nam and Ho Chi Minh City .

The annual activity aimed to exchange information on the socio-economic development of ADB developing member countries in the region, assess the efficiency of development projects and programmes funded by the bank.

ADB provided Vietnam with US$12.5 billion between 1993 and 2013. The bank plans to offer US$3.67 billion to the country during the 2015-2017 period.

Chelsea announces partnership with Vietnam mobile network operator

Chelsea FC has chosen Vietnamobile as its official mobile network services partner in Vietnam, the London football club announced Monday.

The three-year partnership allows Vietnamobile to offer co-branded products such as limited edition SIM cards and promotions in Vietnam, while Chelsea fans in the Southeast Asian country will also be able to access exclusive digital content including wallpapers, videos and ringtones, Chelsea said on its website.

“We are committed to bringing Chelsea FC as close as possible to our supporters around the world, and I am very pleased this partnership with Vietnamobile will allow us to extend that reach in a country where we are already very popular,” Chelsea Chief Executive Ron Gourlay said in a statement.

Vietnamobile CEO Garmon Shaw said Chelsea is widely liked in Vietnam, where football is the favorite sport, as a leading contender in the English Premier League and the European Champions League.

“We are excited to partner with Chelsea and commit to bring this football-loving country a series of interesting activities to mutually benefit both parties,” he said.

Vietnam contributes significantly to the global fanbase of Chelsea FC, with more than one million Facebook ‘likes’ for the club’s official page in the country, the club said on its website.

Founded in 2009, Vietnamobile is the fastest-growing nationwide mobile communications service operator in Vietnam, providing 2G and 3G services, with a focus on competitive pricing and customer service, it said on its website.

Vietnamobile is a Business Cooperation Contract partnership between Hanoi Telecom and Hutchison Asia Telecom Group (“HAT”) which comprises mobile telecommunications operations in the emerging markets of Indonesia, Vietnam, and Sri Lanka.

HAT is a key part of Hutchison Whampoa Limited’s telecommunications division, which includes operators in Austria, Denmark, Hong Kong, Ireland, Italy, Macau, Sweden, and the UK.

Vietnamobile is the fourth-largest mobile network operator in Vietnam with around 13 million subscribers, according to the operator’s report released in January 2014.

Viettel tops the operator list with 54 million subscribers, accounting for nearly 50 percent of the market share, Dien Dan Doanh Nghiep(Business Forum) newspaper said in September, adding that the military-run telecom firm is followed by MobiFone, which has 40 million subscribers, and Vinaphone, with 21 million.

Founded in 1905, Chelsea is London’s most central football club, based at the iconic 42,000-seat Stamford Bridge stadium.

The club, nicknamed ‘The Blues,’ won the 2012 UEFA Champions League and claimed English Premier League titles in the 2004–05, 2005–06, and 2009–10 seasons.

Vietnamese exports to France explode

Vietnam exports to France more than doubled in the last four years, elevating it the third largest trade partner importing the Made-in-Vietnam brand of the European Union (EU).

Exports to the demanding western European country burgeoned from US$1 billion in 2010 to over US$2.2 billion in 2013, the General Department of Vietnam Customs reported.

In the eight months leading up to September of this year alone, the Department reported the nation’s exports to France jumped 12.6% over last year’s corresponding period to hit a record US$1.43 billion.

Most key export products enjoyed high growth including seafood (up 28.7% to US$95.16 billion), wood and timber products (up 28.9% to US$65.37 billion), coffee (up 17.4% to US$64.7 million), and pepper (up 93% to US$16.58 million).

Cashew nuts obtained the highest growth skyrocketing 116.8%, grossing US$16.21 million in total revenue.

Telephone handsets and components led industrial products exports with gross revenue of US$526.74 million, making up 36.8% of the country’s total export revenue in the first eight months of the year.

The Department figures also reflect that Vietnam has enjoyed trade surplus with France for years, and France is currently the third largest trade partner of Vietnam in the EU, trailing Germany and the UK.

According to a survey conducted by import-export management agency in the EU, Vietnamese products are favoured in France thanks to their reasonable prices and high quality meeting with French customers high demands.

Exports to France are quite diversified, including footwear, garment, utensil products, agro-forestry and seafood products, gemstone, jewellery, electrical products, electronics, mechanical tools, ceramics, rubber, coal, toys, sports and entertainment products, plastics and bamboo.

Major imported goods include machinery, equipment, technological line, pharmaceuticals, chemical, high-grade garment, gemstone, jewellery, wine, beverage, rubber products, optical devices, measurement and medical products, cosmetics, wheat, and vehicles and spare parts.

Exports to France are also experiencing favorable conditions as they are not subject to quotas. However, goods have to follow management regulations of the EU common commercial policy and must be verified by Customs.

Over the past two years, the Vietnam Ministry of Trade and Industry (MoIT) has carried out a number of highly visible trade promotion activities in France.

For instance, the MoIT coordinated with the Big C and Casino Group to launch a program to promote Vietnamese goods at Casino Saint-Didier Supermarket in Paris from September 22-29, which introduced a wide variety of Vietnamese traditional goods to French consumers.

France is a highly lucrative market for Vietnamese goods. With a consumer market that includes hundreds of thousands of Overseas Vietnamese residents and students who are bullish on the Made-in-Vietnam brand.

Mekong focuses on sustainable rice development

The Mekong Delta plans to promote large-scale paddy fields on 1.2 million hectares with a specific focus on commercial value and quality for exports, according to the Southwest Region Steering Committee.

According to the plan, the delta will reduce its total rice cultivation area from 4.25 million hectares to 4 million hectares per year, while stabilising output at 24.5 million tonnes from 2015-2020.

The Mekong Delta provinces will also use certified high-yield varieties to improve the average annual output from 5.9 to 6.2 tonnes per hectare.

Additionally, the region will apply advanced farming technologies in rice cultivation to increase yields and economic value, while switching to higher value crops, like corn and soybeans, and aquaculture in low-yield rice paddies.

Nguyen Phong Quang, Standing Deputy Head of the Southwest Region Steering Committee, said the delta will improve its irrigation and dykes system to cope with climate change, whilst supplying irrigational and drinking water. The flood-control system in the areas of the Tien River and Hau River will also be upgraded to ensure sustainable rice development in the near future.

2,000 new agricultural cooperatives to be established

The Ministry of Agriculture and Rural Development (MARD) plans to set up 2,000 new agricultural cooperatives by 2020, mainly operating in such fields as farming, breeding and aquaculture.

The cooperatives will focus on promoting links between businesses and farmers in order to create farm produce supply-consumption chains, heard a conference reviewing the development of agricultural cooperatives in Hanoi on October 14.

The country now has nearly 10,330 agricultural cooperatives, with 92 percent operating in services and agricultural production.

Electronic tax program to be launched next year

The General Department of Taxation of Vietnam has announced to kick off a pilot program on electronic taxation in 2015 to help ease the burden of administrative procedures on local taxpayers.

Under the program, taxpayers can carry out many kinds of tax obligations, from tax registration, tax filing, tax payment, to tax information lookup, on the Portal of General Department of Taxation of Vietnam.

Initially, the program will be performed in Hanoi and Ho Chi Minh City, Vietnam’s two biggest cities where there is a centralized tax collection system running. The program will then be expanded to other provinces and cities across the country in the coming years.

Up to the present time, electronic tax filing service has been launched by the department at 300 municipal tax departments in 63 provinces and cities nationwide.

Accordingly, the e-tax filing system has provided services to more than 397,130 taxpayers, while receiving and processing more than 17.6 million tax returns electronically.

Meanwhile, the electronic tax payment services have been deployed in 18 provinces and cities across the country, with nearly 4,000 participating companies. The total state budget revenues reached over VND2 trillion (US$94 million).

Last month, the General Department of Taxation of Vietnam has deployed the centralized tax management systems (TMS), an integrated and centralized tax information management system nationwide, at its municipal arms to be prepared for the pilot program in the near future.

When fully deployed at all the municipal arms, the TMS system will replace the entire 16 operating applications that support tax administration.

At the same time, the tax service TMS enables easy adoption of standardized management systems across the country, avoiding unnecessary errors during data exchange between the lower and higher tax agencies and reducing operating costs.

A total of 4.245 trillion VND (202 million USD) was mobilised to the State Treasury through an auction for government bonds by the Hanoi Stock Exchange (HNX) on October 13.

The bonds on offer are worth 6 trillion VND (286 million USD) in total, including those of five-, ten- and 15-year terms.

The money mobilised includes 345 billion VND (16.4 million USD) in five-year bonds, 3 trillion VND (143 million USD) in ten-year bonds and another 900 billion VND (42.8 million USD) in 15- year bonds with annual interest rates of 4.8 percent, 6.19 percent and 7.05 percent, respectively.

The State Treasury has so far this year mobilised more than 180 trillion VND (8.6 billion USD) from Government bonds via tenders.

Hanoi promotes One Village One Product

Hanoi has launched the One Village One Product movement, creating new impetus for its craft villages, the Vietnam Economic News reported.

The One Village One Product movement was initiated by Japan in 1979, with the intention of promoting domestic craft production. The movement has so far spread to 36 countries worldwide including Thailand , Cambodia , and Senegal and brought these countries economic development successes.

Hanoi now has 1,350 craft villages, accounting for 67 percent of the country’s total craft villages. Craft villages in Hanoi have consolidated their foothold in the city’s socio-economic structure. The city’s craft products have been sold successfully in domestic and international markets, creating stable incomes for over one million professional craftspeople, a much higher than the income from rice farming.

Craft villages often attract many idle labourers of different ages and help alleviate poverty, especially for disabled people.

Hanoi craft villages have offered many unique products in terms of technique and design thanks to experienced and well- trained craftspeople.

The city has also selected 15 craft villages to set up inter-village tours including Thang Loi, Ha Thai, Phu Vinh, Van Phuc, Son Dong, Bat Trang, and Kieu Ky.

Renovation – key for sustainable development

A forum on sustainable development was held in Hanoi on October 15, providing a venue for scientists to share information, new ideas and other issues of mutual concern as well as seeking cooperation opportunities.

At the opening ceremony, Tran Xuan Hong, Director of the National Centre for Technological Progress (Nacentech) under the Ministry of Science and Technology stressed on the importance of the event and said it will lay a firm foundation for the scientific community in the future.

Participants heard nearly 100 reports from Vietnamese and foreign scientists focusing on smart transport, optoelectronics and professional electronics, and life science, which are applicable to Vietnam.

Deputy Minister of Science and Technology Tran Van Tung said the Ministry always emphasises the vanguard role of science and technology in Vietnam’s integration process.

Yeong Kwan Kim from the Republic of Korea’s Kangwon National University talked about RoK’s environment development policies. He said that waste, solid waste and pollution should strictly be controlled to ensure sustainable development and growth.

During the forum, Nacentech signed cooperative research agreements with partners from Japan, the RoK and Taiwan.

Province seeks permission for Ha Long Bay seaplane takeoff from Hanoi lake

The administration of a northern province is calling on two ministries to allow an aviation firm to fly its seaplanes from a lake in downtown Hanoi instead of the city’s airport to facilitate a tourism service between Vietnam’s capital and Ha Long City.

Nguyen Van Doc, chairman of Quang Ninh Province, has signed a document submitted to the Ministry of Transport and Ministry of National Defense, urging them to “create conditions” for Hai Au Aviation to expand its seaplane service to “better serve customers as well as develop the local tourism industry.”

Ha Long is the capital city of Quang Ninh, and is home to UNESCO-recognized Ha Long Bay. The northern city is 154km away from Hanoi.

In September, Hai Au Aviation began offering flights for sightseeing tours to the coves and islands in Ha Long Bay using two 12-seat Cessna Grand Caravan seaplanes shipped from the U.S.

The seaplanes currently take off from Hanoi’s Noi Bai International Airport, which Doc said in his proposal is not convenient for tourists.

“Tourists have to travel from downtown Hanoi to the airport, then return to the city, to be able to enjoy the seaplane service,” Doc said.

The international terminal is located in the outlying district of Soc Son, 30km and a 40-minute drive from the heart of the capital.

“The total time the customers need to travel to and fro the airport, plus the flying time, is no shorter than the time it takes to drive from the capital to Ha Long City by road,” Doc concluded.

The province’s chairman added that it takes the seaplane much longer to fly from Noi Bai to Ha Long, as it has to pass over the northern province of Hai Phong or Ha Nam before arriving in Quang Ninh.

“The current air route takes 45 to 60 minutes, while it would be only 30 minutes if the aircraft departed from downtown Hanoi,” he said.

Doc thus called on the ministries to allow Hai Au Aviation to have its seaplanes take off from Ho Tay (West Lake) in Tay Ho District, where a seaplane service was located during the French colonial era.

The seaplane service could also be based at Gia Lam airport, which is only 6.5km from downtown Hanoi, he suggested.

The Quang Ninh administration also seeks permission to open more landing and takeoff spots in Ha Long Bay to facilitate the service.

Hai Au Aviation ordered three Cessna Grand Caravan seaplanes from the U.S. at a total cost of US$10 million to serve tourism in Ha Long Bay, CEO Luong Hoai Nam said in a statement last month.

Two of the three were transferred to Hai Au in August and the last will be delivered to it not later than the end of this year.

Service between Hanoi and Ha Long costs more than VND5 million($235) per ticket, while an aerial tour above Ha Long Bay fetch more than VND5 million for 25 minutes, and over VND7 million ($329) for a 40-minute trip.

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