RoK supports Dong Thap’s flower plantation for export

The Republic of Korea’s Rural Community & Agriculture Corporation (KRC) will provide the Mekong delta province of Dong Thap with flower seeds and high-tech transfer to help it produce fresh flowers for export.

This is a main component of the public-private partnership (PPP) cooperation project between Dong Thap and KRC, aiming to help the province boost fresh flower exports.

After a fact-finding tour of the province, on March 12 a KRC study team concluded that that Sa Dec City has advantages in flower export and this is a potential cooperative field between the two countries in the future.

The KRC team also spoke highly of Sa Dec’s project to combine flower development with tourism and committed to call on Korean businesses to invest in the field.

Vietnam Airlines, VietJet Air fined for flight delays

National carrier Vietnam Airlines (VNA) and budget airline Vietjet Air have been delivered what is effectively a slap on the wrist by aviation authorities for failing to inform passengers of lengthy flight delays, the Civil Aviation Administration of Vietnam (CAAV) fining them VND15 million, or about US$750, each.

Vietnam Airlines’s flight VN1370 from HCM City to Hue on March 10 was due to depart at 6:10am from the Tan Son Nhat International Airport but was delayed until 14:25 due to bad weather.

Passengers were not properly informed of the delay. VietJet Air’s flight VJ321 from Phu Quoc to HCM City on March 9 was also delayed for technical checks. Again, passengers were not informed, and were left stranded for more than 10 hours.

Officials from the CAAV said even though VietJet Air strictly comply with the flight safety regulations and provided compensation of VND300,000 to each passenger, it failed to meet its responsibility to inform passengers of the delay so they could make other arrangements.

A circular on aviation compensations for passengers due to long delays will take effect from July 1. As a result, airlines’ compensation for delays of more than four hours will rise to VND400,000, depending their flight distances.

RoK Hanjin group teams up with HNC in express services

Hanjin Group, a conglomerate of the Republic of Korea (RoK), signed a cooperation deal with Vietnam-based Hop Nhat Corporation (HNC) on March 13 to forge international express services between Vietnam and the RoK.

HNC is the first private express firm in Vietnam that was granted a licence for customs clearance of export-import cargo sent via international airway express service by the Vietnam Customs.

The corporation has more than 1,200 employees working in over 140 branches and offices and four logistic hubs nationwide.

A Hanjin’s senior official said through this agreement, the company will be able to handle more international express shipments to Vietnam.

Established in 1945, Hanjin Group has grown to become one of the largest transportation and logistics corporations in the RoK that offers a wide range of logistics solutions, including in-land, sea and air transportations.

It also owns Korean Air, the RoK’s biggest airline, and Inha University in Incheon City where many Vietnamese students are studying.

US holds potential for local wood products

Vietnam has opportunities to expand exports of wood products this year, especially to the US market, delegates said at a conference on March 12.

Despite global economic difficulties, the wood processing industry has enjoyed an average growth of 15 percent over the past seven years (2008-14), said Huynh Van Hanh, Deputy Chairman of the Handicrafts and Wood Industry Association of Ho Chi Minh City (Hawa).

Last year the country earned 6.2 billion USD from the export of wood and wooden products, a year-on-year increase of 11.5 percent, Hanh told participants at a conference on Export to the US Market: Opportunities and Challenges.

The United States, Japan and China were the three largest markets for Vietnamese timber in 2014, accounting for 65.13 percent of the national total export value of timber and forest products.

Hanh said exports to the US market increased strongly in recent years from 1.39 billion USD in 2010 to 2.23 billion USD last year, with bedroom, kitchen, and office furniture being among key export items.

The recovery of the US economy has increased consumption of furniture products in the market, said Tran Quoc Manh, Hawa's executive board member and chairman of the Saigon Trade and Production Development Corp.

The upcoming Trans-Pacific Partnership agreement will open up export opportunities for Vietnamese firms to the market, including those in the wood industry, he said.

Vietnam's furniture export value currently accounts for just 2.68 percent of the total figure of 70 furniture exporting countries.

Wood and wood products exports are expected to grow by at least 15 percent this year, reaching at least 7.2 billion USD, Hanh said, adding that export revenue was 1.049 billion USD in the first two months of the year, up 14 percent over the same period last year.

Vietnam importing more diesel from Singapore

Vietnam’s diesel purchases from members of the Association of South-east Asian Nations (ASEAN) have risen after a tax cut on imports from the region took effect in January, with more spot cargoes coming from Singapore and Malaysia, sources said.

Fuelled by the tax incentive, diesel shipments from Singapore to Vietnam surged almost five-fold to about 107,000 tonnes last month, from around 23,200 tonnes in January, customs data from the city-state showed.

“Recent tenders were mostly awarded on a free-on-board Singapore and Malaysia basis so trade flow has changed a bit,” a fuel importer in Vietnam said.

But the change in flows for Vietnam, which usually buys diesel from China and Taiwan, could be short lived if the country lowers tariffs for oil product purchases irrespective of their country of origin, fuel importers cautioned.

“I don’t think it will last for long, maximum till the end of April ... our government will reduce import tax for products soon, otherwise importers will complain,” the importer said.

Vietnam government officials could not be immediately reached for a comment.

Earlier this year, the country lowered taxes on diesel imports from ASEAN members to 5%, gasoline to 20% and fuel oil to 0%. It levies a tariff of 30% on diesel and 35% for gasoline and fuel oil imports from most non-ASEAN countries, according to traders.

Vietnam’s fuel importers are now asking for a “Form D”, which is a certificate of origin issued by the respective ASEAN country’s customs authority to prove the origin of the oil product, when they issue spot tenders.

“At the moment, the import taxes for petroleum products in Vietnam are very high, so if the cargo (is from ASEAN), we will have to pay less tax,” a second fuel importer said.

This has started to re-draw spot trade flows, although overall diesel imports volumes remain unaffected, traders said.

The impact on gasoline flows has been minimal as Vietnam, under a separate free trade agreement, taxes imports of the fuel from China at 20%, same as that for ASEAN nations.

Vietnam imported about 1.3 million tonnes of oil products during January to February, down 7.6% from the same period last year, government data showed. Diesel and gasoline accounted for most of the imports, traders said.

China firm wants to build railway in Mekong Delta hub

A Chinese firm has expressed interest in setting up a railway system in the southern Vietnamese city of Can Tho, an authorized representative of the company said on March 13.

The railway would connect the Mekong Delta hub with Ho Chi Minh City and the Cambodian cities of Phnom Penh or Siem Reap, Kim Hak Min, Dean of Industry-Academy Cooperation with South Korea’s Soonchunhyang University, said during a meeting with the city’s administration.

Kim is the urban development consultant for Can Tho, and has been authorized by the China State Construction Engineering Corporation (CSCEC) to propose the investment to the city’s leaders.

The South Korean expert led a group of consultants to introduce a plan to turn Can Tho into an outstanding destination in Vietnam in the future, and a “city of happiness.”

The project includes the establishment of a complex of an industrial park, a retreat center, a residential area, and a hi-tech hub. It will be funded by an assistance loan from South Korea and other foreign sources.

Can Tho currently has quite good traffic infrastructure in terms of road, sea and air transportation, but Kim believes the city also needs a railway system, he said.

The railway will help cut transport costs and thus enable Can Tho to be more attractive to investors.

The CSCEC has proposed building a 180km Can Tho – Ho Chi Minh City track, whereas the respective lengths of the services to Siem Riep and Phnom Penh are 320km and 243km, according to the South Korean consultant.

The Chinese company said it is willing to fund the construction and will join hands with relevant Vietnamese agencies to operate the complete system, and share the profits, Kim elaborated.

Asked why Can Tho should choose a Chinese contractor while Japan is better known for constructing railway systems, Kim said it is the price and time that matter, according to Phap Luat (Law) newspaper.

One hundred meters of rail track constructed by Japan will cost $100,000, whereas it will be only $90,000 and $70,000 in the case of a South Korean or Chinese company, respectively, he elaborated.

Tran Thanh Man, Party Secretary of Can Tho, said the proposed railway construction is “a new idea.”

Man demanded an official investment proposition from the Chinese company so that the city can ask for feedback from the Ministry of Transport and the government.

RoK-largest foreign investor in Vietnam

The Republic of Korea (RoK) is currently the single largest foreign investor in Vietnam, with foreign direct investment (FDI) of US$37.84 billion invested in 4,240 projects in the country.

In the first two months of the year alone, the Foreign Investment Agency (FIA) has reported that RoK businesses registered 50 new and 19 supplementary projects with combined pledged FDI of US$222.11 million.

RoK businesses have invested in 51 of the nation’s 63 provinces and cities. Hanoi has attracted the largest number of projects followed by Thai Nguyen and Dong Nai, in second and third place respectively.

The FIA has also reported that as of the end of February, Japan is the second largest foreign investor in Vietnam with US$37.37 billion invested in 2,556 projects. In the January-February period, Japan registered 25 new and 17 supplementary projects with combined FDI valued at US$169.83 million.

Prospects for Vietnam- Australia investment cooperation

Vietnam has plenty of opportunities for exporting its key items- garments and textiles, footwear, wood furniture and agro-fisheries products to Australia.

Vietnam and Australia established formal diplomatic relations on February 26, 1973. Over the past four decades, especially since the relationship was upgraded to a comprehensive partnership in 2009, bilateral ties have developed comprehensively both in breadth and depth across a variety of fields.

In particular, economic, trade and investment cooperation has become one of the important pillars in the bilateral relations.

Bilateral cooperation takes place in some main areas: economic growth, trade and industry development; development assistance; and defence, law enforcement and security ties.

Bilateral trade volume increased from US$3.3 billion in 1990 to US$6 billion in 2014. Australian direct investment in Vietnam jumped to US$1.65 billion last year.  Vietnam is Australia’s fastest growing trade partner among all ASEAN countries.

Australia is currently the 8th biggest export market and the 11th largest importer of Vietnam.

In 2014 alone, Vietnamese exports to Australia surged nearly 14% to US$4 billion over one year earlier.  Vietnam was Australia’s 14th trade partner. The country enjoyed a trade surplus of US$1.9 billion with Australia in 2014.

According to Deputy Minister of Industry and Trade Tran Tuan Anh, Vietnam and Australia are having advantages for promoting economic and trade links in the future.

“Bilateral trade has grown considerably since the two countries signed the Australia- New Zealand- ASEAN Free Trade Agreement (FTA) in 2009, delivering substantial and practical benefits to both sides. With high levels of technological advances and capital resources, Australia is regarded as an important partner of Vietnam at present and the time to come.” Tuan Anh said.

As of 2014, Australia had in excess of 320 valid direct investment projects in Vietnam with a total registered capital of US$1.65 billion.

Currently, Australia ranks 19th out of 101 countries and territories investing in  the Southeast Asian nation with a focus on energy, construction, service, education, agriculture, forestry and fisheries.

Vietnam Ambassador to Australia Luong Thanh Nghi said more and more Vietnamese businesses show a keen interest in investing in Australia. In turn, Vietnam is offering more favourable conditions for foreign firms including those from Australia to do business.

However, Chamber of Commerce and Industry of Vietnam (VCCI) Chairman Vu Tien Loc said the Vietnam-Australia trade and investment cooperation is still below their full potential and expectation.

In the future, the two sides should maximize joint efforts to create an open investment environment for enterprises by removing or loosening trade barriers to help products from the two nations achieve greater market penetration, the VCCI leader said.

Loc emphasized, "Australia has a developed market economy and is intensifying the integration process. The Trans-Pacific Partnership (TPP) participation will help open up a more favourable investment environment of Australia for Vietnamese enterprises.

Vietnam is engaging in new generation free trade agreements (FTAs) and embarking on strong institutional reforms. The two governments are making breakthroughs in improving the business environment.  As a result, Vietnamese and Australian businesses will further boost investment cooperation in the time ahead.”

Deputy Minister of Industry and Trade Tuan Anh said by participating in the TPP Agreement, Vietnam will have numerous advantages for expanding export markets to TPP members including Australia with products of its strength like garments and textiles, footwear, wood furniture and agro- fisheries products.

“Both nations should simplify market access procedures and remove most tariff barriers to facilitate the market opening of TPP members as well as their partners. If Vietnam succeeds in its TPP negotiations, the country will be able to enjoy more better conditions for market access to TPP members including Australia, thus creating two-digit growth for key goods, " the Deputy Minister noted.

Vietnam and Australia are working together to deepen the comprehensive partnership and build an action program for the period 2015-2017 in a bid to augment bilateral economic cooperation. With the combined efforts and determination, Vietnam -Australia economic and trade cooperation will grow and flourish in line with their expectation.

Vietnam Airlines to sell 20% stake to foreign strategic investors

National flag carrier Vietnam Airlines is seeking strategic partners to sell 20% of the company, it told shareholders at a meeting in Hanoi on March 12.

The major shareholder meeting was held to select a new management board and have its operation and business plans for 2015 approved.

After a 20% stake of the airline is sold to strategic investors, the government’s share will shrink to 75% from the current 95%.

Chief executive Pham Ngoc Minh revealed that the airline is in the process of selecting a foreign strategic investor, but declined to name any specific firm, according to Reuters.

Minh remains the chief executive of Vietnam Airlines, whereas Pham Viet Thanh is the chairman of the board of directors.

Vietnam Airlines raised US$51 million from selling 3.47% of the company in an initial public offering in November last year. It will operate as a joint stock company starting April 1.

Minh also told Reuters after the meeting that Vietnam Airlines will list its shares on the local stock exchange by November.

"We will follow the rule to list within one year (from the initial public offering date)," he was quoted by Reuters as saying.

Vietnam Airlines is targeting to serve 16.7 million passengers, and generate a total revenue of VND70.1 trillion (US$3.27 billion) in 2015, according to the business plan approved at the shareholder meeting.

The carrier is expected to earmark VND22.95 trillion (US$1.07 billion) for investment this year, up 2.44 times from the 2014 budget. Most of the money will go toward upgrading its fleet and improving service quality.

Vietnam Airlines has been applying many changes to embrace its becoming a joint-stock company.

Earlier this month it unveiled new uniforms for pilots and cabin crew that are said to “suit the interior designs of the new Airbus A350 and Boeing B787-9 jetliners,” which the airline is going to add to its fleet.

Air hostesses for business class will wear yellow ao dai (traditional Vietnamese dress), whereas their colleagues for economy class will don the blue one instead of the iconic red ao dai that has made Vietnam Airlines stand out from others since 1998.

The carrier also introduced new brand recognition for its aircraft.

A new-generation Airbus A350 XWB, which left the Airbus paint factory in Toulouse on March 6, is the first among Vietnam Airlines’ fleet to bear the new look.

The jet keeps the typical blue and yellow on its body, but the colors are a little brighter. The company logo, symbolized as a blooming lotus on the tail, is enlarged.

The French planemaker is completing the next stages, including engine installation, interior design, and testing on the A350, and will soon hand over the aircraft to Vietnam Airlines.

The A350 XWB is the most modern among Airbus’ long-range, twin-engine wide-body jet airliners. With 53 percent of its fuselage and wing structures made primarily of carbon-fiber-reinforced polymer, the airliner can save 25 percent on fuel consumption.

The aircraft is capable of flying 8,000 nautical miles (14,816 km) without refueling.

Vietnam Airlines is slated to receive the first A350 XWB in June, which will enable it to become the second airline in the world to use the modern jet airliner besides Qatar Airways.

Airbus has received 780 orders for the A350 XWB from 40 customers around the world.

Vietnam Airlines is also scheduled to receive an A350-900 in June and a Boeing B787-9 in May.

The airline will add a total of four A350s and five B787s to its fleet by the end of this year.

Cosmetics with human stuff banned in VN

Legal document No 4555, issued on March 12 by the Health Ministry's Drug Administration, has banned firms or individuals from producing and selling cosmetics containing ingredients of human origin.

Deputy head of the administration Nguyen Viet Hung said that the ban came after a variety of cosmetics, now on sale online, were advertised as having ingredients extracted from human placenta or produced by stem-cell technology.

According to the administration, the use of all human-origin ingredients in cosmetics is banned. The administration has not issued distribution permits to cosmetics extracted from the human placenta or produced by stem-cell technology.

Pan Food aims to increase stake in confectioner Bibica

Confectionery maker Bibica Corporation (coded BBC) on March 13 announced that Pan Food Joint Stock Company, a subsidiary of Pan Pacific Corporation (coded PAN), made a public offer for over 4.6 million BBC shares, equivalent to nearly 30 percent of the company's charter capital.

In a filing with the Ho Chi Minh Stock Exchange, Bibica said Pan Food offered to buy these shares for 56,800 VND (2.65 USD) each. This acquisition aims to increase Pan Food's ownership of Bibica. Both companies are headquartered in HCM City.

If the deal is secured at this price, Pan Food will pay over 261 billion VND (12.2 million USD) to own these shares.

BBC shares declined 1.75 percent the same day to close at 56,000 VND (2.62 USD) a share.

Pan Food currently has a 21.13 percent stake in Bibica, equivalent to 3.26 million shares. It aims to increase its holding to 51 percent and take control of the confectionery maker.

Bibica currently has two major shareholders. Lotte Confectionery owns 6.79 million shares, or 44.03 percent of Bibica's charter capital, while Pan Food became a major shareholder on January 27 by purchasing 2.3 million shares.

Apart from Pan Food, another subsidiary of Pan Pacific Corporation, Ben Tre Aquaproduct Import and Export Co (coded ABT), holds a 3.58 percent stake of Bibica, or 553,000 shares.

Bibica is one of the leading confectionery makers in Vietnam with popular brands including Hura, Choco Bella, Orienko, Zoo and OneTwoThree. Last year, it reported sales of almost 1.13 trillion VND (52.8 million USD), an increase of 7 percent over the previous year. Its net profit also went up 27 percent to reach 57.4 billion VND (2.7 million USD).

Vietjet Air and Lotteria sign strategic deal

Low-cost airline Vietjet Air and fast food chain Lotteria Vietnam signed a strategic cooperation agreement in Hanoi on March 13 with the aim of bringing significant added value to customers of both parties.

Accordingly, Vietjet Air will offer customers more choices of Lotteria Vietnam’s products on flight menus for both domestic and international routes besides the current nine dishes.

Meanwhile, Lotteria will introduce Vietjet Air’s services at all its global stores.

To commemorate the partnership, Lotteria’s logo will be painted on all Vietjet Air planes.

March consumer price index to rise slightly: GSO Head

A recent rise in fuel prices and the upcoming adjustment of electricity costs will lead to a slight increase in March’s consumer price index (CPI), Head of the General Statistics Office Nguyen Bich Lam revealed to the Vietnam News Agency.

The April index and those of the following months will reflect the price increases more definitively, Lam said.

According to him, the three consecutive decreases of petrol prices in late 2014 and January 2015 caused an 8.2 percent reduction in transportation service rates in the first two months of the year, which contributed to a fall in the CPI.

However, it is difficult to predict if inflation will be controlled at a low level this year, as inflation depends on a balance between supply and demand, the prices of import products, regional and world political stability and currency exchange rates, he said.

Low CPI serves as an indicator for the Government to adjust the prices of necessities like electricity, school tuition and health services, while working to keep inflation rates below 5 percent this year.

Nevertheless, Lam expressed his concern that rising petrol prices will put pressure on inflation management.

He suggested the Government continue steering the Ministry of Finance and the Ministry of Industry and Trade to monitor market price developments as well as intensify inspections on the market and the execution of legal regulations on oil and petrol businesses.

He also stressed the need for close coordination between relevant ministries and offices to design inflation policies, adding that the timing of price adjustments is integral to avoid impacting the CPI.-

Song Thu shipyard builds modern tug boat

The Song Thu Corporation under the General Department of Defence Industry has completed a modern tug boat, the first in a series of four vessels under a cooperation agreement with the Dutch Damen Group.

The 5,600CV tug, 24 metres in length and 11 metres in width, was launched on March 12 in the central city of Da Nang.

The corporation has also built and delivered 30 ships to partners from the Middle East.

First trial electronic toll collection system launched in Quang Binh

The Ministry of Transport held a ceremony to commence trial operation of an electronic toll collection system (ETC) at the Km604+700 station on National Highway No1 in the central province of Quang Binh on March 13.

The move aims to assess the practicality of the technology at pilot tolls before applying it to all stations across the country’s road network.

Two more trial ETCs are scheduled to be commissioned in the central province of Nghe An and Central Highlands Dak Lak province, using new technology eliminating the need for drivers to stop their vehicles and pay cash fees as is the current practice.

During the trial period, the manual toll collection model, where a toll collector sells tickets and logs vehicles into the system by hand, will also be maintained.

Drivers will be issued an electronic tag to be attached to the inside portion of the front windshield of a vehicle with a denoted account. The tag will transmit a signal to the computer at the toll gantry as it approaches, and the toll will charge the account automatically.

The Ministry aims to install the system in 35 tolls across the National Highway No1 and sections of the Ho Chi Minh Highway in the Central Highlands, said Deputy Minister of Transport Nguyen Hong Truong.

It assigned the TASCO Joint Stock Company and the Bank for Investment and Development of Vietnam to implement the project.

According to Truong, the ETC will use the US Radio Frequency Identification system, the world’s latest technology. The system is simple, low-cost and has a quick identification speed. The technology will save time, curb congestion, strengthen the State's management and help avoid losses.

Pham Quang Dung, TASCO Chief Executive Officer, stated that the new technology could save up to 3.4 trillion VND (159 million USD) annually, among other benefits.

Craft villages to face challenges from ASEAN Economic Community

Craft villages, a non-competitive and vulnerable part of Vietnam’s economy, will face greater challenges sparked by the establishment of the ASEAN Economic Community (AEC) by the end of 2015.

The AEC will effectively eliminate the majority of tariffs across the region, leading to significant pressure from mass imports and a risk that Vietnamese products may lose out in the domestic market.

Speaking at a recent forum concerning the difficult outlook, Vu Quoc Tuan, Chairman of the advisory council at the Vietnam Craft Villages’ Association, put forward a number of suggested measures.

He emphasised the necessity of enterprises operating in craft products to have basic knowledge of the AEC. A survey conducted by the Ministry of Planning and Investment unveiled 76 percent of surveyed domestic firms said they were completely unaware of the AEC.

The transition is more likely to produce positive outcomes if affected businesses research rival products and drastically prioritise enhancing their product quality, he said.

Tuan also pointed to the small scale of primarily family-run production facilities in craft villages nationwide and underscored the importance of connecting facilities to improve overall sector competitiveness.

At the forum, the Vietnam Fatherland Front Central Committee and the Vietnam Craft Villages’ Association called for additional State incentives and favourable policies facilitating the development of the traditional business.

A round-table talk is expected to take place at the end of March between the Vietnam Craft Villages’ Association and the Ministry of Industry and Trade, the Ministry of Finance and others to review the implementation of policies on craft village development and seek related solutions.

Official discusses TPP challenges for Vietnam

The Vietnam News Agency has talked with Luong Hoang Thai, head of the Ministry of Industry and Trade’s Multilateral Trade Policy Department, on some of the challenges facing Vietnam during the negotiations for the Trans-Pacific Partnership negotiations (TPP).

The official said all involved countries so far have progressed to the final phase of the negotiation process, and they are making efforts to technically conclude the negotiations in the first quarter or early in the second quarter this year in order to submit it to the leaders for approval.

He noted that the TPP is a treaty of a very high standard, perhaps even an unprecedented standard, and this causes difficulties for most of the countries involved, especially in some key fields such as protecting intellectual property rights or opening up the goods market.

According to Thai, Vietnam’s biggest difficulty is how to get other countries to open their market to Vietnamese goods and services at a degree at which Vietnamese enterprises can exploit in the future, especially for main export commodities like garments and textiles, footwear, agro-products and seafood.

He continued to say that another big challenge is that Vietnam has to adjust laws to suit international standards, especially in intellectual property protection and customs management. Vietnam also has to amend laws on labour to conform to the criteria of the International Labour Organisation (ILO), he added.

Responding to opinions that little information is available for the domestic business circle regarding the TPP, the official said one of the rules of the negotiation process is that all member nations have to keep negotiation information secret until the end of the process.

He added that given the TPP’s expected great impacts on the domestic economy and business community, the Prime Minister has instructed negotiation agencies to regularly consult those directly influenced by these agreements.

Accordingly, the Ministry of Industry and Trade (MoIT) has coordinated with other ministries to collect information and feedback from business communities across the country, Thai said, adding that the ministry has also consulted business representative via the Vietnam Chamber of Commerce and Industry or related trade associations on each specific issue.

He said in the coming time, the MoIT and the negotiation delegation will continue to collect opinions from enterprises, while timely make information available in line with the negotiation’s rule, so enterprises can prepare to take advantage of the TPP as quickly as possible.

The TPP is one of the world’s biggest Free-Trade Agreement (FTA) with the combined gross domestic product (GDP) of all 12 participant countries accounting for 40 percent of the global GDP.

Vietnam participates in international furniture fair in Singapore

Over 30 Vietnamese furniture companies are showing their products at the International Furniture Fair Singapore 2015 (IFFS-2015), taking place from March 13-16.

Vietnamese Trade Counsellor in Singapore Nguyen Viet Chi said that this year’s event included an increasing number of Vietnamese participants, as the event presents an opportunity for them to promote their products as well as access the design trend and consumers’ taste to foster exports to other foreign markets.

It is also a forum for wooden furniture enterprises to tighten relations with their frequent customers and seek potential new clients.

Numerous visitors to Vietnamese booths, mostly Singaporean retailers and wholesalers, voiced their commendation of the unique and high-quality Vietnamese wooden products and interior decor.

According to statistics, Vietnam generated 15.8 million USD in wooden product exports to Singapore in 2014, up 40 percent from the previous year.

The IFFS, one of Asia’s largest annual trade fairs for furniture and interior design, drew the participation of 39 countries and territories worldwide including 16 from Asia.

BSP expected to increase key rate

The Bank for Social Policies (BSP)’s annual outstanding loan growth rate is expected to increase by 10 percent.

The Prime Minister has ordered the Ministry of Investment and Planning, the Ministry of Finance and other authorised bodies to examine the proposed final decision.

The drive is in line with the bank’s 2011-2020 development strategy, approved by the PM, in a bid to create opportunities for credit activity expansion and to assist impoverished households to rise out of poverty.

The PM has requested the Governor of the State Bank of Vietnam, Nguyen Van Binh who is also Chairman of the BSP Board of Directors, to provide easier credit access for social beneficiaries in an effort to successfully and sustainably reduce huger.

As many as 1.24 million impoverished households and policy beneficiaries in Hanoi have accessed capital from the bank over the past 12 years, receiving a combined loan value of over 14 trillion VND (658 million USD).

Last year, the Hanoi branch offered loans to 120,000 households, including 17,000 disadvantaged individuals and 11,000 students.

The branch also generated jobs for 30,000 locals, upgraded 60,000 clean water facilities and contributed to reducing the rate of impoverished households to 1.91 percent in 2014 from 2.66 percent in 2013.

Gov't approves loan plan to replant coffee

The Prime Minister has approved a loan programme by the State Bank of Vietnam for replanting coffee trees in the Central Highlands in 2014–20.

He also instructed the central bank to co-ordinate with relevant agencies to carry out the loan programme and ensure it is a success.

The Ministries of Agriculture and Rural Development and Industry and Trade and the provincial authorities of Lam Dong, Kon Tum, Dak Nong, Dak Lak, and Gia Lai have been ordered to work with the bank to facilitate the implementation the programme by providing coffee growers farming know-how and promoting their products.

They were also instructed to help farmers easily get access to the loans.

According to the Department of Cultivation, coffee is cultivated in 22 provinces and cities across the country, with five major areas being the Central Highlands, the south-east, the southern and northern parts of the Central Region, and the middle part of the northern region.

At the end of 2014, 641,000ha were under coffee, but on 15 percent of it the trees were over 20 years old, and on 25 percent they were 15-20 years old.

Some 140,000-160,000ha of coffee trees are aged and need to be replanted or replaced by other crops in the next 45 years.

Vietnam's annual coffee exports exceed 3 billion USD, and over 500,000 households and more than 1.6 million workers depend on the crop for a living.

Coffee has also contributed to the socio-economic development of the Central Highlands and a number of other localities around the country.

Vietnam, Hong Kong garment companies ink cooperation contract

The Duc Giang Corporation (Dugarco), one of Vietnam’s leading garment enterprises, has signed a cooperation contract with Hong Kong (China)’s largest listed garment firm, Luen Thai Holdings.

This move is part of efforts the corporation is making to integrate more deeply into the world garment market, especially with a raft of advantageous free trade agreements anticipated to be ratified soon.

According to the President of Dugarco’s board of directors, Hoang Ve Dung, under the contract Luen Thai will buy 51 percent of the shares of the Duc Hanh Garment Joint Stock Company, one of Dugarco’s subsidiaries.

He expressed his hope that, by sharing market, technology and administrative experience with Hong Kong’s leading garment firm, the company’s revenue and profits will enjoy five-fold increases.

Established in 1990, the Duc Giang Corporation now has nine subsidiary companies, with nearly 10,000 staff working in 22 factories.

Tra Vinh targets 37,500 tonnes of shrimp output in 2015

Shrimp farmers in the Duyen Hai, Cau Ngang, Tra Cu and Chau Thanh districts of the Mekong Delta province of Tra Vinh have targeted a total shrimp output of 37,500 tonnes and a 3.5 trillion VND revenue in 2015.

Specifically they targeted a black-tiger shrimp output of 13,500 tonnes and 24,000 tonnes of white-legged shrimp.

The locality has farmed around 13,000 hectares of shrimp thus far this year, mainly in Duyen Hai and Cau Ngang district.

According to Nguyen Vu Phuong from the provincial Department of Agriculture and Rural Development, his agency is focused on efforts related to environment and water management, weather forecast, breeding management and production, and disease prevention.

The department has sent technical staff to support local farmers in key farming areas by organising workshops and providing training on cultivation techniques and disease prevention to farmers.

Additionally, the agency has also cooperated with its counterparts in proximal Ninh Thuan, Binh Thuan and Bac Lieu provinces to exchange information.

In 2014, Tra Vinh harvested 37,000 tonnes of shrimp.

Hau Giang: Rice market fares well

The Mekong Delta province of Hau Giang saw a 5-10 percent rise in the price of rice thanks to national stockpile purchases in accordance with the Prime Minister’s decision, said Nguyen Van Tham, Deputy Director of the provincial Department of Industry and Trade.

Apart from the specific quota assigned to each rice-trading enterprise under the Vietnam Food Association (VFA), the province also devised incentives to encourage traders from other localities to join the movement.

Farmer Ly Van Nhanh from Vi Thanh city, whose rice was purchased immediately after the harvest, expressed his happiness over the prompt purchase saying it gave him capital to invest in his next crop.

Hau Giang’s 2014-15 Winter-Spring crops are expected to produce 560,000 tonnes of un-husked rice, 30,000 tonnes of which is scheduled to be purchased by the province.

According to the Ministry of Agriculture and Rural Development, the total output of the Mekong Delta’s Winter-Spring 2014-2015 crops are expected to reach 11.3 million tonnes of un-husked rice, equivalent to 4.3 million tonnes of commercial rice in addition to the 707,000 tonnes in the rice inventory from last year, bringing the total commercial rice stock to around 5 million tonnes.

Rice export is estimated to amount to only 1.4 million tonnes in the first four months of the year, likely resulting in falling domestic rice prices.

The Prime Minister has ordered the Mekong Delta to purchase and stockpile 1 million tonnes of rice in the winter-spring crops to help keep prices stable.

The Mekong Delta, the country’s largest rice granary, is comprised of 12 provinces and one centrally-run city with a total area of 40,000 square kilometres and a combined population of 18 million.

Listed firms turn high profits in HCM City

The number of companies making high-profit growth has risen this year on the Hochiminh City Stock Exchange, proving their faith in economic development prospects this year.

Compared to the modest growth targets of just 5-10 percent last year, many listed companies have declared growth targets of 30-150 percent.

Mobile World Investment Corporation (MWG) has set high financial targets. It expects to lift its consolidated revenue this year to 23.59 trillion VND (1.1 billion USD) and make a total net profit of 886 billion VND (41.4 million USD), an increase of 50 percent in revenue and 31 per cent in profit compared with the targets of 2014.

At the annual shareholders' meeting last week, MWG's chairman, Nguyen Duc Tai, said the company was gearing up to boost its size and that this would provide employees with better benefits.

MWG is Vietnam's biggest mobile-phone retailer with 361 stores across the nation. Last year, it reported a total sale of 15.756 trillion VND (739 million USD) and after-tax profits of 673.7 billion VND (31.5 million USD).

Techno-Agricultural Supplying Company (TSC) also expressed high hopes for the year by setting its revenue target to rise 113 per cent and net profit to grow by 67 percent compared with 2014.

Its total sales this year are expected to reach 1.01 trillion VND (47.2 million USD) while net profit will likely go up to 117 billion VND (5.5 million USD).

According to the company's general director, Phan Minh Sang, the targets are challenging but attainable. TSC plans to boost investments in food and agricultural chemical businesses with a focus on expanding its domestic distribution network while strengthening international cooperation and seeking M&A opportunities.

Apart from electronics and agricultural sectors, property companies also plan high growth in revenues and profits this year because of belief in the sector's recovery.

TuLiem Urban Development Company (NTL) completed only 50 percent of its 2014's plan, but it still striving for growth of 250 percent this year.

NTL's board of directors has approved a plan to hike revenue to 350 billion VND (16.4 million USD) and pre-tax profit to 120 billion VND (5.6 million USD) by year-end. It also projects a dividend rate of 10 percent.

Both FLC Group (FLC) and PhatDat Corporation Real Estate Development Co (PDR) also slate impressive growth of 200 to 600 percent.

FLC plans for the 2015 profit of 1 trillion VND (46.7 million USD), two-and-a-half times that of 2014, while PDR expects to raise its pre-tax profit to 300 billion VND (14 million USD), six times higher than last year.

Vietnam, Thailand develop rice markets

The Vietnamese and Thai agriculture ministers discussed cooperation to build sustainable rice markets and increase the value of exported farm produce during their meeting in Hanoi on March 12.

Thai Minister Petipong Pungbun Naaydhya noted that Thailand and Vietnam are the two biggest exporters of agricultural products in Southeast Asia and among the leading exporters in the world.

However, the competitive global price of farm produce has pushed the prices of key staples like rice, rubber, seafood, vegetables, fruits and sugarcane down, adversely affecting farmers, he said.

Vietnam and Thailand grow similar rice seeds and collectively comprise more than half of the global rice exports, he said.

He suggested the two countries put forth a cooperation strategy to build a sustainable farm produce market for their long-term mutual interests, including defining grain standards, prices, and quality.

Minister Cao Duc Phat reiterated that Vietnam is home to 4 million hectares of rice and one million hectares of rubber, and stated his country’s intention to work closely with Thailand to generate mutual long-term benefits.

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