Customs signs agreement with banks for e-tax payment 

The General Department of Customs (GDC) on Tuesday signed a co-operation agreement with six commercial banks to implement a 24/7 e-tax payment scheme.

The five local banks are Sacombank, VPBank, HDBank, LienvietpostBank, SCB and the foreign bank is Mizuho Bank Ltd. The e-tax payment through the six banks will be implemented from December 15.

Speaking at the signing ceremony, GDC’s Deputy General Director Nguyen Duong Thai said the customs sector was required to upgrade its e-payment portal for the purpose of administrative reform.

The e-tax payment would facilitate tax payment anywhere, anytime, reduce time and ensure immediate goods clearance. The customs authority will directly support enterprises to make payment documents from the original data and minimise errors in money transfer procedures.

This could help shorten time to complete customs procedures for import-export activities to the average level of ASEAN-4 countries following the Government’s instructions.

Firms only need certificate authority (CA) to transfer money and authorise banks to pay taxes through their accounts without fees.

Banks participating in e-tax payment are required to upgrade their e-payment portal.

Previously, the e-tax payment agreement was signed with five banks — Vietcombank, VietinBank, BIDV, MB and Techcombank — on October 23.

So far, about 1,500 successful transactions have been processed through the website with a tax payment of VND200 billion (US$8.8 million). 

Japan rolls out red carpet for foreign investors

The Japan External Trade Organisation (JETRO) recently held a press conference in Hanoi, where it called for Vietnamese enterprises to do business in Japan, noting the country as an attractive destination for foreign investors.

At the event, JETRO chief representative Hironobu Kitagawa said that Vietnamese enterprises have golden opportunities to invest in the land of the rising sun as the two countries are increasing their cooperation.

Japan has a favourable location, sound business climate and its largest ever Vietnamese population, all factors which will aid Vietnamese enterprises, he said.

He also mentioned Japan’s strengths for all foreign investors, including its growing economy, large consumption market, innovation and safety.

Previously, luring foreign direct investment (FDI) was not a focus in Japan’s policy. However, due to its development requirements, the nation is now changing its mind by forming special economic zones and preferential policies.

JETRO offers a programme to support Vietnamese businesses who wish to invest in Japan. After registration with JETRO, the companies will receive free consulting services from the Invest Japan Business Support Centres (IBSC). 

However, economic experts said that as Japan is a fastidious market which demands high quality products, Vietnamese businesses should thoroughly study the investment environment and legal policies while attracting quality human resources.

According to Nguyen Sy Hai, JETRO representative in Vietnam, Vietnam is operating 1,253 projects worth 21.4 billion USD in 74 countries and territories worldwide. 

Vietnamese businesses have made little inroads in Japan, running 49 projects valued at only 7.5 million USD in the country.

Several Vietnamese companies have opened firms in Japan like FPT company and CMC corporation.

VIETBUILD Home expo to showcase household stuff

VIETBUILD Home, the annual exhibition on housing, home decoration and household appliances, will be held in Ho Chi Minh City from December 14-18 when people shop for the New Year holidays.

This year the event will feature about 2,000 booths, over 30 percent higher than last year, set up by more than 450 exhibitors from 12 countries and territories, including the US, Italy, France, Germany, the UK, the Republic of Korea, Japan, Singapore, China, and Vietnam.

They will exhibit a wide range of new products related to construction, intelligent housing systems, and interior and exterior decoration besides household equipment like air conditioners, kitchen utensils and more.

There will be property transaction floors selling low-income housing and listing incentives.

A workshop on “Unbaked construction materials – green construction materials for green projects”, business forums and a customers’ conference will also be held to help businesses understand more about market demands.

Nguyen Tran Nam, chairman of the Vietnam Real Estate Association and head of the organisation board, said the demand for interior and exterior furnishings usually increases at the year-end as people renovate their homes to welcome Tet (Lunar New Year) holidays.

The event is therefore well-timed, he added.

The expo will be held at the Saigon Exhibition and Convention Centre in District 7.

Vietnam helps Laos build printing factory

Vietnam presented a printing factory for the Lao book publishing and distribution house to Laos in Vientiane on December 12.

Located 7 km from the country’s capital Vientiane, the facility spans 400 square metres, with construction cost amounting to 26 billion VND (1.14 million USD).

Pham Chi Thanh, head of the Vietnam National Political Publishing House, said this is the second publishing facility Vietnam has given to Laos.

He expected the factory will help the publishing house fulfill its duty of promoting the local government’s and party’s polices and laws.

Lao Minister of Information, Culture and Tourism Buangean Saphuvong thanked the Vietnamese Government, Party and people for the valuable gift and committed to effectively using the factory to disseminate information on Lao policy and Vietnam – Laos ties.

On the occasion, the Vietnam National Political Publishing House also presented its Lao equivalent laptops and computers worth about 300 million VND (13,200 USD) and friendship orders in acknowledgement of its publishing books on Vietnamese law and policy in Laos.

Vietnam Retail Forum reviews 10-year retail market growth

The Vietnam Retail Forum, themed “10 years of retail market and challenges in the future”, was held in Hanoi on December 12. 

Speaking at the event, Chairwoman of the Association of Vietnam Retailers (AVR) Dinh Thi My Loan said 2017 marks the 10th founding anniversary of the AVR and 10 years since Vietnam entered the World Trade Organisation. 

Over the past decade, the AVR has strived to develop a modern and consumer-oriented retail industry, served as a bridge between manufacturers and consumers and spread the campaign “Vietnamese prioritise Vietnamese goods”. 

Hoang Anh Tuan, deputy head of the Ministry of Industry and Trade’s Domestic Market Department, said the AVR now has 216 members compared to 100 at its establishment. 

He lauded the AVR for connecting its members with State management agencies, giving feedback on retail-related laws and policies and refining policies on managing foreign retailers.

As a member of the domestic market monitoring group, the AVR has directed member firms to deal with fluctuations in markets and held seminars discussing Vietnamese goods in the modern retail system. 

In 2017, Vietnam jumped five spots to sixth place in the 2017 Global Retail Development Index (GRDI) released by the US’s management consulting firm A.T. Kearney. The country was also among the top 30 developing countries for retail investment worldwide.  

With favourable government policies, urbanisation, a growing middle class and a relatively young population, foreign retailers are positive about the country, according to A.T. Kearney.

Vietnam Development Forum seeks to increase productivity

The Vietnam Development Forum, themed “Increasing productivity – leverage for sustainable growth”, was held in Hanoi on December 13. 

In his opening speech, Minister of Planning and Investment Nguyen Chi Dung said Vietnam achieved and surpassed 13 socio-economic development goals set by the National Assembly this year. Gross domestic product is estimated at 6.7 percent this year. 

Describing productivity improvement as crucial to Vietnam’s sustainable growth and economy, Dung hoped that development partners, firms and experts at home and abroad will suggest effective solutions to the government to enhance output. 

World Bank Country Director in Vietnam Ousmane Dione said improved productivity is significant to turning Vietnam into a middle-income country till 2035. 

He lauded Vietnam’s growth over the past five years, adding that there remains room for the country to improve economic productivity, upgrade transport and logistics. 

According to him, effective collaboration between domestic and foreign firms is important to lifting Vietnam’s status in the global value chain. 

Dione suggested the Vietnamese government continue improving its business climate, simplifying administrative procedures and properly allocating land and capital resources. 

He also underscored the importance of skill training, innovation and effective use of preferential loans. 

During the two sessions, participants look into global trends and experience in increasing productivity and improving Vietnam’s status in the global value chain and agricultural production with less resources.

Prime Minister Nguyen Xuan Phuc will attend the second session on increasing productivity for Vietnam’s sustainable development and deliver a speech to wrap up the forum. 

The event was hosted by the Ministry of Industry and Trade and the World Bank in Vietnam.

WTO forum looks to promote dialogues between State and private firms

Entrepreneurs and politicians from World Trade Organisation (WTO) member nations gathered at a business forum in Argentina on December 12 to promote dialogue between State and private businesses.

The forum is part of the 11th WTO Ministerial Conference, which is taking place in Buenos Aires from December 10-14, with more than 400 delegates from 164 member countries in attendance. 

Participants affirmed their determination to promote dialogues between state and private firms to remove barriers for global trade and establish a framework suitable with globalisation.

Director-General of the WTO Roberto Azevedo said business activities have impacted trade exchanges, fuelling the development of economies, generating jobs, promoting entrepreneurship and innovation to boost growth and prosperity. 

He underlined the significant role of e-commerce for newly-established enterprises.

President of the host country Mauricio Macri said states and businesses should enhance dialogues to bring benefits for people.

He called on WTO member countries to remove trade barriers and promote sustainable growth by using modern technologies.

He emphasised focusing investment on poverty reduction, food security and gender equality.-

Livestock farmers urged to join production links

Livestock farmers should join production links with co-operatives as well as processing and trading enterprises to sustain their livelihoods, experts said at a conference in Hà Nội yesterday.

The conference, organised by the Ministry of Agriculture and Rural Development (MARD) and the Food and Agriculture Organisation (FAO), sought measures to enhance production and consumption linkages in the livestock industry.

Deputy head of the ministry’s Department of Livestock Production, Nguyễn Xuân Dương, said the concerted efforts made earlier this year to “save the pigs” as the prices of live pigs dropped to a record lows can only be a temporary measure.

The falling prices were chiefly attributed to weak production organisation of farmers, particularly in linking their production with the market, he said. Farmers were still basing their production on personal perceptions and not knowledge of supply-demand factors.

“Seeing an increase in pork prices, many farmers flocked to raising pigs, leading to oversupply and falling prices,” he said.

“This will be repeated if farmers do not join production links between themselves, co-operatives and enterprises. And not only pigs, but farmers could suffer losses with other produce such as cattle and chicken,” he said.

Establishing linkages would help farmers improve disease prevention, hygiene and food safety, establish product origins, identify shortcomings in the whole production process and, most importantly, deal better with supply and demand issues, Dương added.

Vinod Ahuja, a policy expert from FAO in the Asia-Pacific region, said the pig crisis had great impacts on small-scale households. How to protect farmers from market shocks was a tough question, he said.

Ahuja suggested specific regulations be issued on contracts and polices to protect farmers in cases of difficulties in the market.

Farmers should have opportunities to join the process of information supply and decision making, he said.

Dương of MARD said policies were needed to ensure benefits of all participants in the production links. At present, farmers often suffered losses while enterprises were always on the “safe side,” he noted.

Other speakers noted at the conference that many production links had gained high economic efficiency, like those established by the Vietnam Dairy Products Joint Stock Company (Vinamilk) and TH True Milk Corporation. These models helped many farmers become rich, they said.

Hoàng Quang Vũ, an expert with the Institute of Policy and Agricultural and Rural Development Strategy, said the institute had studied the efficiency of a number of production links in Việt Nam for many years.

The Tân Thông Hội Co-operative in HCM City, for example, bought milk products from its members at a higher price than what farmers got from intermediaries. The co-operative then sold milk products to dairy firms. "This link helps reduce risks for farmers," Vũ said.

However, such models were still limited and the linkages between farmers, co-operatives and enterprises remained low in the country, he added.

First Vietnam Property Awards launched

The Vietnam Real Estate Association (VNREA) held a press conference in Hanoi on December 12 to announce the launch of the first-ever Vietnam Property Awards for 2017-2018. 

Speaking at the event, VNREA Chairman Nguyen Tran Nam said it will be the annual awards co-hosted by the VNREA, the Construction Ministry’s Management Agency for Housing and Real Estate Market and VTV24 news centre under the auspices of the Central Steering Committee on Housing Policy and Real Estate Market and the Construction Ministry. 

He underscored the significance of the awards, especially at a time when the VNREA is due to hold the International Real Estate Conference (IREC) with over 20 countries taking part in September 2018. 

The awards aim to honour outstanding individuals, organisations and projects that contribute to the rapid, sustainable and transparent development of the realty market amid industralisation, modernisation and integration, thereby encouraging domestic property firms to improve competitiveness and trademark up to international practices. 

The competition is open to all individuals and entities operating in real estate in line with Vietnam’s law, exclusive of foreign ones, without discrimination between VNREA members or non-members. 

Participants will compete in eight categories, including the prestigious real estate developer, the largest urban area, the best resort development, the best office building for rent and shopping mall, the best worth-to-live residential area, the best green building, the best real estate transaction floor and the best social housing project.

EU-MUTRAP project promotes Vietnam’s deeper trade integration

The European Trade Policy and Investment Support Project (EU-MUTRAP) has helped Vietnam further integrate into the global and regional trading systems while promoting Vietnam-EU trade and investment relations, said Deputy Minister of Industry and Trade Hoang Quoc Vuong.

Vuong made the statement at the closing ceremony of the project in Hanoi on December 12.

Lauding contributions of the project, he expressed his belief that a new phase of cooperation will be open for both sides with numerous projects to fully tap benefits of the EU-Vietnam Free Trade Agreement (EVFTA).

Bui Huy Son, Director of the EU-MUTRAP Management Board, said that after five years of implementation, the project has fulfilled all of its set plan with 130 technical support activities, 74 reports and research documents, and 300 seminars and training courses in 31 cities and provinces.

Through the EU-MUTRAP’s six sub-projects, support of the EU reached handicraft small and medium enterprises, helping them develop brand names and sustainable designs as well as improve their business results.

The project also worked to branch out the support industry, enhance capacity for the leather shoe sector and build a value chain for Long An and Binh Thuan’s dragon fruits.

Unlike previous projects backed by the EU, EU-MUTRAP endorsed improvements in investment, environment and labour policies and shifted from supporting negotiations of international trade deals to supporting the implementation of international trade commitments.

Specific support activities were provided for Vietnamese seafood, garment, leather shoes, coffee and cocoa, Son added.

Ambassador Bruno Angelet, Head of the Delegation of the European Union to Vietnam, stressed that bilateral trade between Vietnam and the EU has increased significantly after the EVFTA took effect.

Thanks to EU-MUTRAP, Vietnamese exporters were updated to the latest market information and knowledge about food safety for fruit, vegetable, seafood and honey.

Deputy Minister of Industry and Trade Tran Quoc Khanh, who is head of the Government negotiation team for the EVFTA, said the successful EU-MUTRAP project wrapped up the “MUTRAP” journey as a model of efficient cooperation between Vietnam and the EU.

EVN to complete key power projects at year’s end

The Electricity of Vietnam (EVN) will work out measures to ensure the completion of key power projects at the end of 2017.

They include the 500/220kV Long Bien – Bac Ninh 2 transmission line, the 220kV Thai Binh – Tien Hai – Truc Ninh, Quang Ngai – Quy Nhon, Di Linh – Bao Loc, and Tan Uyen – Thuan An transmission lines and the 220kV Nong Cong, Phu My, Can Tho, Phuoc An transformer stations.

In December, the EVN pledged to ensure the supply of commercial electricity of the first turbine of the Vinh Tan 4 thermal power plant as well as the test run of the first turbine of the Thai Binh thermal power plant.

The EVN and the Ministry of Industry and Trade have worked with the People’s Committees of southern Dong Nai, Binh Duong and south central Binh Thuan provinces to address land clearance for the 500kV Vinh Tuan – Song May – Tan Uyen power line and the 500kV Tan Uyen transformer station.

The company asserted to quickly improve infrastructure and human resources to provide online electricity services on December 21, 2017.

In the first 11 months of this year, the EVN commenced the construction of 196 power projects and put into operation 180 grid works with capacity of 110kV-500kV.

The commercial electricity output in the 11-month period was estimated at 159.9 billion kWh, a year-on-year rise of 9.18 percent.

Forum to discuss productivity for sustainable development

The Vietnam Development Forum (VDF) 2017 with the theme of “Increasing productivity – A lever for sustainable development” will take place in Hanoi on December 13, announced the Ministry of Planning and Investment. 

Minister of Planning and Investment Nguyen Chi Dung and World Bank Country Director for Vietnam will co-chair the forum, which will focus on analysing the real situation and obstacles to increasing productivity in Vietnam.

Increasing productivity is seen as one of the long-term measures for Vietnam to foster its economic development, overcome the middle-income trap and catch up with developed countries.

The forum is expected to raise public awareness of the role and importance of increasing productivity in promoting and maintaining rapid and sustainable development, making it easy for policymakers to build productivity policies for Vietnam.

The two-session forum will discuss issues related to increasing productivity, basic issues of the productivity growth in the world and the reality in Vietnam, thus proposing specific measures to foster the process on the basis of domestic and international experience.

International experts will also introduce solutions to increasing productivity in important sectors and fields in Vietnam.

Salmonella-tainted baby formula products enter Vietnam

Following the warning of the International Food Safety Authorities Network ( INFOSAN) of some under six-month-old babies infected with Salmonella Agona-tained formula, the Vietnamese food safety watchdog yesterday ordered to investigate dairy products.

French authorities announced it had ordered the recall of baby formula products manufactured by the Lactalis Dairy group after cases of 20 children under six months old affected by salmonella were detected.

Worse, the Food Safety Department said some Salmonella-tainted baby formula products had been imported into Vietnam.

Accordingly, the Food Safety Department urged health agency to carry out tests.

While waiting for test results, the Food Safety Department required to stop consumption of these products with batch number CELI EXPERT 2 400G X12 GEX ASIE of batch No. 17C0012563; CELI EXPERT 2 900G X6 GEX ASIE with batch No. 17C0012597; CELI EXPERT 2 400G X12 GEX ASIE with batch No. 17C0012837; CELI EXPERT 2 900G X6 GEX ASIE with batch No. 17C0012869; CELI EXPERT 3 400G X12 GEX ASIE with batch No. 17C0012639; CELI EXPERT 3 900G X6 GEX ASIE with batch No. 17C0012648; CELI MAMA 400G X12 NEUTRE PROMAT with batch No. 17C0012679 và CELI MAMA 400G X12 NEUTRE PROMAT with batch No. 17C0012679.

Garment, textile obtain highest trade surplus value in export items

After the US withdrew from the talks on Trans-Pacific Partnership (TPP), Vietnam’s garment and textile export met with difficulties in the first two quarters this year. However the industry has posted the record high trade surplus value taking the lead in export items.

Chairman of Vietnam Textile and Apparel Association (Vitas) Vu Duc Giang yesterday said that garment and textile export this year posted the highest value in all export items of Vietnam, reaching US$15.51 billion increasing 7.15 percent over 2016.

That was partly thanks to the hike in the export ratio of garment items under original design manufacturer (ODM) method. The number of original design manufacturers accounted for 3 percent last year, increasing to 7 percent this year and expected to reach 11 percent next year.

According to Mr. Giang, Vietnam’s garment and textile industry met with difficulties after the US withdrew from TPP. Some importers transferred their orders to other markets such as Sri Lanka, Myanmar and Bangladesh in the first and second quarter to take advantage of 0 percent tax rate. However, orders have returned to Vietnam since the third quarter.

Besides good quality and on time delivery, businesses have improved their competitive ability, invested in new technologies and sought new markets besides traditional ones such as the US, EU, Japan and South Korea.

In 2017, Vietnam has started exporting garment items, fiber and cloth to China with the total turnover of $1.04 billion.

In addition, the industry has lot of opportunities from bilateral and multilateral free trade agreements which will be signed in the next 1 and 2 years such as EVFTA and ASEAN + 6 (China, Japan, South Korea, New Zealand, Australia, India).

Vitas said that many businesses have already had orders to produce until the second quarter next year, forecasting that garment and textile export turnover will approximate $33.5-34 billion.

Customs industry cooperates with eleven banks to implement e-tax collection

The General Department of Vietnam Customs yesterday signed a cooperation agreement on 24/7 e-tax collection project with six banks from December 15.

Previously the customs industry had signed the agreement with five banks to implement the project, which is the major one of the general department in 2017.

The project enables enterprises to pay tax directly in customs website anytime and anywhere with Internet access.

Implementation of the project is considered as a breakthrough in tax collection and payment, creating advantageous conditions for tax payers.

Cargo transport cost in Singapore-Hai Phong accounts for half of Hanoi-Hai Phong

Transport cost of a cargo container tops US$100 from Singapore to Hai Phong Seaport and $200 from Hanoi to the port over the distance of 100 kilometers.

Similarly transporting a consignment from HCMC to Singapore costs only VND1-2 million but it is as high as VND5.3 million from HCMC to Vung Tau city over the distance of 120 kilometers.

That was revealed at Vietnam Logistics Forum “Improvement of competitiveness and development of Vietnam logistics services” in Hanoi this morning. The event was hosted by the Ministry of Industry and Trade, the Ministry of Transport, the World Bank and Vietnam Logistics Association.

At the forum, many businesses lamented that transport cost accounts for 5-6 percent or even 20 percent of their production costs. In addition, they are bearing many other logistics costs such as cargo loading, discharging, storage and preservation.

Mr. Le Huy Hiep, chairman of Vietnam Logistics Association, said that logistics service in Vietnam is strongly developing with the growth rate of 15-16 percent a year, ranked fourth in Asia after Singapore, Malaysia and Thailand.

Vietnam’s logistics cost totaled $41.26 billion last year equivalent to 20.8 percent gross domestic product (GDP).

The country now has about 3,000 businesses in the field. Most of them are small and medium scaled. Only 30 companies supplying multinational logistics service are operating in Vietnam.

The weak point of Vietnamese logistics companies is not good service quality and high cost. There are many reasons for that including problems in customs procedures, tax, loading and storage costs, management experience, human resource, IT application and unclear costs in administrative procedures.

Logistics cost cut and competitiveness improvement to boost export and economic development is an urgent requirement, according to Mr. Hiep.

The Prime Minister has issued Decision No.200 this year to pass a an action plan to develop logistics service and improve competitiveness. The plan aims at raising logistics service’s contribution ratio to 8-10 percent GDP and reducing costs to 16-20 percent GDP, said Minister of Industry and Trade Tran Tuan Anh.

However, the service has faced many limitations such as unconnected plans among relevant agencies; weak traffic, commercial and IT infrastructures which are unconnected with countries in the region. In addition, human resource has failed to meet requirements and the competitiveness of Vietnamese logistics companies is not high compared to businesses in the region and in the world.

The ministry and relevant ministries will continue amending policies and regulations to simplify administrative procedures to create advantageous conditions for businesses to solve these difficulties.

Minister Tran Tuan Anh suggested relevant sides to better cooperation to develop traffic infrastructure, logistics centers and IT infrastructures, in association with key economic zones and corridors and able to connect with nations in the region and the world to develop logistics service efficiently.

City Chairman prompts establishment of interagency team to assist investors

Chairman of HCMC People’s Committee Nguyen Thanh Phong has prompted the Department of Planning and Investment to complete the draft decision to establish an interagency team to solve procedures for large-scale investment projects in the city.

According to the requirement, the agency should base on capital scale and norms of projects which must be submitted to the National Assembly, the Prime Minister, central agencies and HCMC Party Committee to make specific proposals to the team. In short term, the team should concentrate on major projects affecting the city’s economic growth.

The team’s task is to solve or assist solving all procedures for investors in the city until projects are licensed to operate.

Businesses will just submit their documents to the team and receive them back at the same address without contacting any other agency as present.

Chairman Phong required to reduce at least 50 percent of time to do procedures compared to the current process.

The team’s members must comprise a team leader who is the city People’s Committee chairman and deputies who are vice chairmen of the committee.

The director of the Department of Planning and Investment will be permanent member. The remaining members will be directors of Natural Resources and Environment, Finance, Planning and Architecture, Construction and Justice Departments.

In addition, the team will invite relevant agencies and districts to attend in solving procedures depending on each project.

Summit on Indochina triangle focuses on socio-economic development

A press conference on the eleventh summit of the Cambodia-Laos-Vietnam (CLV) Development Triangle Area was held in Binh Phuoc province yesterday evening.

As plan, the CLV’s delegates will attend in the local subcommittee conferences about environment and society, security and foreign affairs and economy.

Especially, they will participate in ministry- level summit under the chair of the Ministers of Planning and Investment of Vietnam and Laos, Minister of Commerce of Cambodia. 

Within the summit framework, the delegates will contribute ideas and  implementation plans of  trade promotion and creating trade condition in development of the  triangle area; and join Cambodia- Laos and Vietnam trade and tourism  fair with 100 their pavilions.

Rubber export revenue picks up 39 percent

Vietnam earned more than 2 billion USD from exporting 1.2 million tonnes of rubber during January-November, up 39 percent in value and 8.4 percent in volume, according to the General Department of Vietnam Customs.

This was the first time in four recent years rubber export value exceeded 2 billion USD. The value exceeded 2 billion USD in 2010 then hit a record high of 3.2 billion in 2011. However, export revenue fell sharply during 2014-2016, falling to below 2 billion USD.

Sharp rises in rubber export prices have improved the product’s export value. In the first ten months of this year, the average price of rubber increased 32.6 percent to 1,680 USD per tonne. 

However, the Ministry of Industry and Trade said global natural rubber prices started to dip from mid-November while rubber supply increased. According to the Association of Natural Rubber Producing Countries, global rubber output as of October went up 5 percent to 10.43 million tonnes.

China remained largest importer of Vietnamese rubber. In the first 11 months of the year, the country purchased more than 785,800 tonnes of Vietnamese rubber worth nearly 1.29 billion USD, about 64 percent in quantity and value of the country’s rubber exports.

Loss-making ethanol plant may resume operation

The Ministry of Industry and Trade is considering re-operating the Dung Quat ethanol plant in the central province of Quang Ngai next quarter to implement a nationwide scheme to replace RON 92 gasoline with E5 bio-fuel next month.

According to the ministry’s estimate, facilities of Vietnam National Petroleum Group (Petrolimex) and PetroVietnam Oil Corporation (PV Oil) can provide more than six million cubic meters of E5 bio-fuel per year.

Tien Phong newspaper quoted Deputy Minister Hoang Quoc Vuong as saying that the trade ministry is working with the finance ministry over a revision of environmental protection tax to make the price of E5 more attractive to encourage the use of this bio-fuel.

Besides the Dung Quat ethanol plant, the Dinh Vu polyester fiber plant and the Phu Tho ethanol plant have been suspended as a result of cost overruns and losses. Of these, Dung Quat ethanol has seen additional costs of more than VND2.1 trillion and lost VND200 billion after one year.

The Ministry of Public Security has recently been told to investigate and punish units and individuals involved in irregularities at these projects.

Mekong Delta has much room for food processors

The Mekong Delta region’s food processing sector has great growth potential owing to an abundance of produce there, but investment in the sector there remains modest, heard a conference in Can Tho City on December 12.

Nguyen Phuong Lam, deputy director of the Vietnam Chamber of Commerce and Industry (VCCI)’s branch in Can Tho City, stressed at the conference on promoting investment to expand the food value chain that the delta has much room for food processors.

He said the region is home to 20% of the country’s population, and boasts gross domestic product (GDP) per capita of an estimated US$2,700 in 2017, which suggests the region may have strong purchasing power in the future.

He added the region has average export turnover of around US$13-15 billion a year. Its main products are rice, seafood and fruit which account for around 50% of outbound sales of the agricultural sector, equivalent to US$6.5-7.5 billion per year.

According to Lam, the region is also known as a major agricultural production region. For example, the Mekong Delta accounts for 90% of the country’s commercial rice output, and seafood including shrimp and tra (pangasius) fish at 3.5-4 million tons a year. “This is one of the competitive edges which will help prop up the growth of the local food processing sector in the future,” he stressed.

However, he said, as of the end of last year, the region had had only 35 projects worth US$550 million in the food processing sector.

Vo Sang Xuan Vinh, deputy director of Bluewave Advisory Co Ltd, said financial investors who pour money into food chains pay more attention to partners whose financial models are good. In addition, their business performance should be fine and their segments fall into the highest added value.

“Within a value chain, investors keep an eye on the food processing stage which turns out value-added products,” Vinh said.

He added investors pay more attention to food processing enterprises that have strong brands, have the ability to export their products, and make their products certified by international agencies available in local distribution systems.

Steel prices seen rising further

Some southern steel manufacturers have plans to continue raising steel prices by VND300,000 per ton this week, having hiked the price by VND200,000 on Monday, Thanh Nien newspaper reports.

The steel price may reach VND13.5-13.6 million a ton excluding value added tax at factories. If the tax is included, the price would be VND15 million a ton and consumers will have to buy steel products at VND15.5-15.7 million, even VND16 million per ton.

Enterprises attributed the price hike to a rise in global material prices since the end of last month. Specifically, steel scrap prices have increased from US$230 to US$350 per ton while iron ore prices in China have gone up to US$70 a ton from US$60.

An expert said steel prices have risen due to higher demand of the Chinese market. Chinese steel products exports to the Southeast Asian region have dipped 42% in the last nine months and the fall will continue next year.

The steel price hike has caused concerns for southern residents and construction companies as the season for home construction and repair is coming.

According to the Vietnam Steel Association, domestic enterprises turned out 17 million tons of steel in January-October, up 22.8% year-on-year. Meanwhile, steel sales in the local market reached 14.2 million tons in the period, increasing 18.4% over the year-ago period.

The country had exported more than four million tons of steel to fetch US$2.7 billion and spent US$8 billion importing over 15 million tons of steel in the year to end-September, up 50% and 16% in value versus the same period last year respectively.

Vietnam among fastest growing e-commerce countries

Vietnam is one of the fastest growing e-commerce countries in the world, heard the Vietnam Business Forum 2017 themed “E-commerce Solutions for the Success of Businesses” organized in Hanoi on December 12.

According to Do Kim Lang, deputy director of the Vietnam Trade Promotion Agency (Vietrade), which held the forum, the country’s e-commerce market grows 35% a year, 2.5 times faster than in Japan.

Vietnamese businesses capable of taking advantage of the internet and technology grow 2.1 times faster than others. Small and medium enterprises that spend more than 30% of their budget on technological innovation grow nine times faster than those spending less than 10%.

Lang said Vietnam’s e-commerce retail sales growth in 2016-2020 is estimated at 20% per year, and the country’s total retail e-commerce sales would reach US$10 billion by 2020.

In 2017, e-commerce retail sales have expanded 25% and would become an important part of Vietnam’s e-commerce sector.

However, there are still some barriers that threaten the sustainable development of e-commerce, including low consumer trust in the real products and online payment security.

Besides, most Vietnamese e-commerce websites provide basic services only, such as information about products and modes of payment. They should have added services like digital marketing optimization and connecting online with offline sales.

Lang said retailers cannot gain success on the e-commerce market by simply creating and operating a website. They have to develop a thorough and well-integrated strategy for all aspects of operation, including production, marketing, product sources, order management, and transport and delivery services.

HCMC to issue bonds next Monday

The HCMC government intends to issue VND2 trillion of municipal bonds next Monday to raise capital for its urgent and key infrastructure projects, the news website Zing.vn reports.

In a document sent to the Finance Ministry, the municipal government says it will issue debt next Monday, and receive money from buyers on the following day.

These bonds will have tenors of 10, 15, 20 and 30 years. Investors’ needs and market conditions are taken into account to decide on the size of each type of debt.

Upon the first debt issuance, extra bonds may be issued later to ensure sufficient capital from bond sales, and help increase the liquidity of the secondary market.

The municipal government urges the Finance Ministry to come up with a bond coupon range prior to the issuance date.

The local government issued VND9 trillion of bonds between 2014 and 2016. The bond term of 15 years last year carried a coupon of 7.55% per annum.

The city is in dire need of investment capital for a slew of big-ticket infrastructure projects such as Metro Line No. 1 linking Ben Thanh Market in District 1 and Suoi Tien Park in District 9. If slow disbursement continues, this project would be at risk of suspension or fall behind schedule.

HCMC concerned over sand and cement shortages

HCMC may face a shortage of construction sand and cement in 2020, according to the city’s Department of Construction.

Speaking at a conference on construction materials held by the Ministry of Construction on December 12, Tran Trong Tuan, director of the department, said the city is one of the localities most affected by a construction sand undersupply and rising sand prices in 2017.

Total reserves of sand in HCMC and 19 southern provinces are estimated at 250 million cubic meters while the total demand for construction sand would amount to more than 366 million cubic meters between now and 2020.

However, Tuan said substitutes for natural sand are not always available as only six of the 19 southern cities and provinces have alternative materials.

Besides, HCMC would face a shortage of cement if all cement facilities are forced to move out of the city before 2020.

Tuan said the city now has 10 cement grinding stations with a total capacity of more than 10 million tons. It is possible to raise their capacity to reach the city’s demand for cement in 2020, which is estimated at nearly 13.5 million tons.

According to the master plan for construction materials by 2020 approved by the city government, cement plants, grinding stations and other building material facilities will be moved out of the city no later than 2020 to prevent environmental pollution.

However, the relocation will affect the operation of cement facilities, thus causing a cement shortage and a cement price rise.