Seoul promotes tourism in Hanoi

The Seoul Metropolitan Government held an exchange on May 13 to introduce its tourism potential to Vietnam travel companies and tourists.

A representative from the Seoul Metropolitan Council, Lee Eun Ju, said seven among top 20 countries with the highest number of visitors to the RoK come from Asia, of which Vietnam records a 21% growth rate, trailed by Thailand (25%), Hong Kong (China) (40%) and China (42%).

To attract more tourists to the city, Seoul has built several tourism development plans and support mechanisms, including certifying outstanding tourism products and launching tourism promotion programmes.

The exchange proved a traditional modern and dynamic Seoul that boasts huge potential for tourism development with many attractive amenities.

Last year, around 470,000 Vietnamese people visited the RoK, a year-on-year growth of 20%.

Minister calls for restructuring to develop agriculture sector

The Ministry of Agriculture and Rural Development has urged the restructuring of agriculture to increase farmers' incomes, produce higher-quality produce and improve export competitiveness.

Speaking at a meeting yesterday in HCM City, Cao Duc Phat, minister of Agriculture and Rural Development, said it was important to link the agricultural sector to the national programme on new rural areas.

Restructuring the agricultural sector would help reduce poverty, he said. Though Viet Nam is one of the world's top rice exporters, many of its farmers remain poor, if not very poor.

In recent years, the country has provided training to farmers to help them increase yields, but the processing sector and the volume of raw material input has not been adequate.

Under restructuring, production chains would be established which would help enterprises, farmers and scientists work more efficiently.

Phat said agricultural restructuring would enhance economic growth and create higher incomes for farmers.

"Building new rural areas and restructuring agriculture depends on farmers," he said. "Even adapting to climate change and rising sea levels, farmers must be part of the process."

Restructuring should focus on the each region's strengths. For example, the strengths of the Cuu Long (Mekong) Delta are rice, fruit, and seafood.

Although farmers have been encouraged to grow other crops of high economic value on their paddy fields, rice paddies would remain the stronghold of Vietnamese agriculture, he said.

He said cultivation of other crops would be beneficial, but the choice of crops should depend on the market.

"It is essential now not to focus on increasing output, but instead on improving the quality and competitiveness of farm produce for export," Phat said.

Phat said that farmers needed more instruction in advanced techniques, including the use of new and better quality rice strains.

He said the agricultural industry should also seek more investment from the private sector, and focus on training high-quality human resources.

Bank to invest 15 trillion VND in Central Highlands region

The banking sector will provide the Central Highlands region with 15 trillion VND (694 million USD) for projects on power plants, transportation and agriculture.

The announcement was made during a press conference held in Hanoi on May 14 to introduce the 3 rd Conference for Investment Promotion and Social Security for the Central Highlands, scheduled to be held in Lam Dong province on May 17.

By March 31, total outstanding loans were estimated at close to 152.4 trillion VND (7.03 billion USD), representing an increase of 4.78 percent compared to December 31 last year and 3.74 percent of the country’s total lending in the same period, according to the conference organising board.

Loans serving the agricultural sector reached nearly 73 trillion VND (343 million USD), up 3.29 percent.

The banking sector helped fund initiatives to alleviate hunger and poverty, raise living standards, ensure social security and upgrade technical infrastructure and rural areas.

From 2008 to 2014, banks have spent about 556 billion VND (23 million USD) on social welfare activities in the region.

At the 2nd Conference for Investment Promotion and Social Security for the Central Highlands, commercial banks signed 20 credit contracts for over 23.8 trillion VND (1.1 billion USD) for the region, said Tran Viet Hung, Standing Deputy Chairman of the Steering Board for the Central Highlands region.

However, the mobilised capital met only about 57 percent of the region’s demand, he added.

The Central Highlands consists of Dak Lak, Dak Nong, Gia Lai, Kon Tum, and Lam Dong provinces.

Belarusian enterprises eye cooperation with Vietnam

Vietnamese and Belarusian enterprises in food and agriculture gathered at a business meeting in Hanoi on May 14.

Co-organised by the Vietnam Chamber of Commerce and Industry (VCCI) and the Belarusian Embassy in Vietnam , the event opened opportunities for enterprises of the two countries to seek partnerships and expand business links.

At the meeting, many major Belarusian enterprises expressed their hope to cooperate with and purchase peanuts, cashews, coffee and cacao from Vietnam .

VCCI’s Deputy Head of the International Relations Department Nguyen Vu Kien said enterprises of the two sides could benefit from bilateral preferential schemes.

Belarus companies could export food and beverage products to Vietnam and Vietnamese companies could expand their traditional agricultural, footwear and aquaculture products to the European country.

He highlighted that Vietnam will create the best possible conditions for enterprises from both sides.

In return, Belarusian Ambassador to Vietnam Sadokho Valery said economic and trade relations have not met their full potential, though Belarus has imported several products from Vietnam including tea, rice, and seafood.

Belarus is strong in chemistry, petrochemistry, automobiles and hi-technology but exports to Vietnam in those fields are still modest, he added.

Vietnam concluded negotiations for a free trade deal with the Russia-Belarus-Kazakhstan Custom Union in late 2014, which is expected to boost cooperation and investment between the two countries.

Sea transport industry needs reforms

Vietnam's sea transport industry needs restructuring to become more competitive, said head of the Transport Ministry's Marine Department Nguyen Nhat.

He said that the restructuring process must start with diversifying the fleet.

Statistics from the department show that Vietnam has 600 sea shipping firms with over 1,800 vessels that have a total capacity of 7.4 million tonnes.

However, more than half of the ships are bulk carriers and other smaller ships, while there are only a few container ships, liquefied gas carriers and specialised vessels.

"The unreasonable structure of ship categories was the weakest point of Vietnam's fleet," said vice head of the Marine Department Bui Thien Thu.

Thu added that five sixths of the country's sea shipping firms were private, but accounted for only a quarter of the fleets' load capacity.

"The figures show that most of the firms are small," Thu said.

"It's difficult for Vietnamese sea transport firms to compete with foreign companies," he said.

The Vietnamese fleet can currently only deal with 15 percent of the market share, and foreign shipping companies take the rest.

Vietnamese ships carry goods overseas but mostly on routes to China and Southeast Asian countries, while foreign firms take major markets like Europe and America.

Thu said that about 40 foreign sea transport firms operating in Vietnam planned to cooperate with each other to raise their competitiveness.

Domestic firms are losing out at home as local importers and exporters usually prefer agreements with international shipping which their partners have the right to select.

Head of the Marine Department Nhat said that Vietnamese sea transport firms usually developed their fleets without long term visions or strategies, which resulted in ineffective business operations.

Nhat said that incentives were needed for local sea transport firms to invest in their fleet.

Besides restructuring the fleet, the Government should offer tax breaks for goods carried by Vietnamese ships, and connect exporters with shipping firms.

He said the Transport Minister had approved a plan to improve Vietnam's marine infrastructure by 2020.

It estimated that the country needs about 2 billion USD to upgrade seaport facilities that have hindered the development of Vietnam's sea transport sector.

Nhat said that the ministry expected private investors to look at developing these infrastructure projects.

UN commission for Asia-Pacific: Vietnam’s inflation down to 2.5 pct

The Vietnamese economy is forecast to pick up moderately at 6.1-6.2 percent thanks to improving exports, investment and household purchasing demand.

According to a flagship survey of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) released in Hanoi on May 14, Vietnam’s inflation fell from double-digits to 4.1 percent in 2014 and would be 2.5 percent in 2015.

Commenting on the regional economic prospects, Dr. Albert Isgut from the ESCAP’s Macroeconomic Policy and Development Division said the Asia-Pacific economy will expand by a mere 5.9 percent this year from 5.8 percent a year earlier, spurred by decreased inflation and a steep decline in global oil prices.

The ESCAP has introduced an innovative new multidimensional inclusiveness index – a composite measure of 15 core indicators that track the economic, social and environmental dimensions of development in 16 countries, which together account for 92 percent of the region’s population and 88 percent of its GDP.

It called on regional developing economies to ensure equal opportunities, especially among women and girls by expanding their access to quality education and healthcare.

The commission also expressed its support for countries to create jobs by facilitating small- and medium-sized enterprises and industrialising rural areas with the private sector holding a key role in inclusive development.

ESCAP Executive Secretary Shamshad Akhtar urged Asia-Pacific governments to mobilise domestic resources, especially those from the private sector for sustainable development.

Promotion of value chains necessary for food industry: experts

Food producers should focus on enhancing the role of supply and value chains in the food industry to create high quality and added value farm products and food.

Deputy Minister of Industry and Trade Do Thang Hai stressed this during his speech at a conference in Ho Chi Minh City on May 14 hosted by the Ministry of Industry and Trade (MoIT)’s Department of Trade Promotion.

According to the MoIT, Vietnam offers many products with high-export value in the world market such as cashew nuts, pepper, rice and coffee.

Vietnam’s export turnover of farm products in 2014 reached over 30 billion USD and is expected to continue growing.

However, the country is facing difficulties in shipping goods to foreign markets due to its weakness in processing capacity and trademarks.

Experts said barriers to Vietnam joining global supply chain include shortcomings in managing the quality of products and the high cost for production and business. Meanwhile, international markets are increasingly seeking free trade options, resulting in greater competitiveness.

Pham Minh Duc from the World Bank in Vietnam stressed the need to roll out practical measures to increase the export value of farm products and food while focusing on managing quality and enhancing efficiency in production, processing and distribution to meet the strict requirements of foreign markets.

Measures to ensure food safety should be implemented for all supply chains in order to facilitate trademark generation and bring prestige, Duc said.

Vo Thanh Do, Deputy Head of the Department of Processing and Trade for Agro-forestry-Fisheries Products and Salt Production, suggested farm products and food producers intensify the application of advanced science and technologies in processing.

He said the added value of agro-forestry-fisheries products is hoped to increase by 20 percent and the rate of post-harvest loss reduce 50 percent by 2020.

Salt industry needs new development strategies

Insiders have called for new salt production strategies with the increasing preference for Vietnamese handmade sea salt in foreign markets, reported the Thoi bao Kinh te Viet Nam (Vietnam Economic Times) newspaper.

Vietnam posted a salt output of 1.3 million tonnes in 2014, about 250,000 tonnes of which were unsellable.

Yet, it imported more than 350,000 tonnes of salt during the year and 400,000 tonnes in 2013, given the shortage of refined salt for chemical and medical purposes, according to relevant agencies.

Vietnam boasts vast potential for salt export, said the Ministry of Agriculture and Rural Development’s Department of Processing and Trade for Agro-Forestry-Fisheries Products and Salt Production.

The country shipped abroad over 25,000 tonnes of salt last year, including 800 tonnes to the US and 2,000 tonnes to Japan, the department noted, adding that more and more businesses from the US, Japan, the Republic of Korea, and Taiwan (China) are buying Vietnamese salt, especially handmade salt hailing from the northern region.

Some US traders said their country’s Food and Drug Administration recommended handmade sea salt for daily use over refined salt.

Several scientific studies show that a large number of cancer patients are deficient in mineral elements like magnesium, calcium, iodine, zinc, and selenium which are found in handmade salt.

The majority of countries in the world manufacture salt by using modern production lines which eliminate almost all the above-mentioned elements, making machine-made salt less healthy for consumers.

Le Quang Thang from the State-owned Vietnam Salt Co. Ltd said northern farmers still extract salt by drying seawater on sand, maintaining over 80 chemical elements in salt crystals that other production techniques are unable to do.

Consumers in Japan, the US and the European Union are increasingly favouring sea salt hailing from northern Vietnam, he added.

Thang urged further communication activities to raise public and business awareness of salt consumption, citing the fact that many companies import cheap industrial salt to produce sauces or seasoning, causing mineral shortage for consumers.

He said importing salt amid the excess of domestic products demonstrates policy gaps as there have yet to be any polices specifically designed for the salt industry.

Other insiders said State agencies should appropriately assess the value of handmade salt and design proper development strategies.

Deputy Minister of Agriculture and Rural Development Vu Van Tam asked the salt production department to step up the building of salt brands and geographical indicators.

It also needs to liaise with relevant agencies to expand markets for Vietnamese sea salt and invest in the production chain to utilise the strength of handmade salt.

Shrimp sector to benefit from Vietnam-RoK trade deal

Vietnam could export 10,000 tonnes of shrimp products to the Republic of Korea at zero percent tax thanks to the free trade agreement (FTA) signed between the two countries in May 2015 and expected to take effect in 2016.

This is seen as a huge advantage for the Vietnamese shrimp sector since rivals from Thailand, Indonesia, and India still have to pay import tariff at 20 percent when shipping the products to the RoK.

General Secretary of the Vietnam Association of Seafood Producers and Exporters (VASEP) Truong Dinh Hoe said the RoK agreed to give an annual import quota of 10,000 tonnes of Vietnamese shrimp at zero percent tax rate, which will be applied after the bilateral trade pact comes into effect in 2016.

He added that the quota can be raised to 15,000 tonnes in three or four years.

As a member of the Association of Southeast Asian Nations (ASEAN), Vietnam also benefits from the ASEAN-RoK free trade agreement which has enabled the bloc to export 5,000 tonnes of untaxed shrimp to the RoK.

According to the VASEP, the RoK is now the fifth largest shrimp importer of Vietnam after the US, Japan, the European Union and China.

Last year, Vietnamese shrimp made up 44 percent of the market share in the RoK, an annual rise of 41.3 percent, with a total value of 317.8 million USD, surpassing China to be the second largest shrimp supplier to the RoK.

Nevertheless, in the first quarter of 2015, shrimp exports to RoK dropped by 19.5 percent over the same period last year, to 51.33 million USD.

Though the trade deal presents huge opportunities, businesses remain worried about a number of issues such as the role of Government, ministries and sectors in dealing with commitment violations as well as investment capital and technical barriers.

Italian newspaper: more and more foreign investors choose Vietnam

Vietnam has increasingly become a favourite of foreign investors worldwide, said Il Sole 24 Ore, an Italian national business newspaper.

The article titled “I capitali esteri scelgono il Vietnam” (Foreign capitals choose Vietnam) on May 12 said foreign direct investment (FDI) to Vietnam reached 24 million USD last year, a 31 percent surge against 2013. The country garnered 9 percent of the foreign capital destined for Asia, making it the second largest destination of FDI in the continent after China.

The number of FDI projects doubled to 241 in 2014 from 118 in 2013, it added.

Vietnam’s Gross Domestic Product (GDP) expanded by 6 percent last year and is expected to grow to 6.1 percent and 6.2 percent in 2015 and 2016, respectively.

According to Il Sole 24 Ore, the promising manufacturing sector coupled with relatively low labour costs were key factors attracting foreign investors to the country despite growing competition from other economies in the region, such as Laos, Indonesia and Cambodia.

Citing FDI Markets, a service of Financial Times, the paper noted that the main reason why 60 percent of surveyed foreign investors chose Vietnam is the rapid growth of its domestic market. Around 10 percent were lured by the low Vietnamese labour costs relative to other regional countries.

US-based Proctor and Gamble has announced the construction of a 100 million USD factory in southern Binh Duong province, the manufacturing heartland of the country, while Samsung was considering transferring its production of LCD screens to Vietnam or China due to the rise in labour costs in the Republic of Korea, it said.

Samsung is the largest foreign investor in Vietnam and about to become the largest foreign employer in the country.

Although FDI in Vietnam rose by 5 percent during the first four months of 2015, the country has begun to tighten its belt towards the goal of developing a more sustainable economy.

Several provinces of the nation have rejected investment projects that were likely to increase pollution, consume too much land or require a considerable amount of unskilled labour.

According to the newspaper, it is a good time for Italian companies who can provide technologies and expertise to improve the quality of production in Vietnam to invest.

New A320 added to Vietjet Air’s fleet

The low-cost carrier Vietjet Air welcomed an additional A320 aircraft on May 13, increasing the number of its planes to 25 with a view to meeting the high travel demands this summer.

The move also helps the carrier expand its domestic and international presence.

Vietjet Air is currently operating 150 flights per day on 30 air routes, covering domestic destinations and a number of international destinations in Singapore, Thailand, the Republic of Korea, Taiwan (China), and Cambodia.

On this occasion, the carrier decided to provide additional 1,500 flights, offering 270,000 tickets from 199,000 VND (9.26 USD) for short routes and 399,000 VND (18.56 USD) for over-one-hour voyage.

The special fares are particularly reserved for passengers booking tickets before May 30 for flights departing from now until August 30.

Over 22 million USD for rice land development

The Prime Minister has approved spending an additional 480.9 billion VND (22.1 million USD) from the State budget on rice land development and protection.

The money will be allocated to nine localities across the country, which are Bac Ninh province in the north, Da Nang city, Thanh Hoa and Quang Ngai provinces in the central region and the southern provinces of Tay Ninh, Vinh Long, Dong Thap, Hau Giang and Kien Giang.

In Vietnam , protecting cultivated rice land is essential as urbanisation, industrialisation and infrastructure construction reduces rice farming areas.

To develop cultivated rice land, the Government recently issued a decree on managing and using rice fields efficiently.

Vietnam ’s 2014 rice production was estimated at 28 million tonnes, equivalent to 45 million tonnes of paddy and up almost 800,000 tonnes from 2013, according to the Ministry of Agriculture and Rural Development.

The country exported 6.5 million tonnes of rice worth roughly 3 billion USD last year. Major export markets for Vietnamese rice include Singapore, mainland China, Hong Kong, Cote d'Ivoire, Algeria and Indonesia.

Vietnam calls for more Egyptian investors

The Vietnamese Embassy in Cairo introduced cooperation potentials and partnership opportunities in the Vietnamese market to Egyptian enterprises during a conference in Ismailia city on May 13.

Addressing the event, Ambassador Dao Thanh Chung reviewed Vietnam’s 2014 socio-economic context as well as key benchmarks of the Vietnam-Egypt relations. He also proposed a number of measures to beef up bilateral trade ties.

Businesses of both sides should actively participate in trade fairs, investment conferences and exhibitions to seek partnerships, he said, suggesting they should set up direct relations to avoid third party risks.

He held that agriculture, forestry and seafood are promising areas for the two countries to cooperate, urging authorised agencies of both sides to pay greater attention to tapping the full collaboration potential in these fields.

Chairman of the Ismailia Chamber of Commerce Akram El Shafey confirmed that local enterprises are keen to explore collaboration opportunities with Vietnamese partners.

He suggested the Vietnamese Embassy in Egypt organise similar conferences to offer Ismailia enterprises deepened understanding on potentials and Vietnam’s investment environment.

He revealed that the Ismailia Chamber of Commerce hopes to sign a memorandum of understanding on affiliation with the Vietnam Chamber of Commerce and Industry to fostering partnerships between the business communities of both sides.

Last year, trade between Vietnam and Egypt reached 395 million USD, a 100-million USD rise from 2013. The two sides are striving to raise the figure to 400 million USD this year.

Ismailia, a city in northeast Egypt and the capital city of Ismailia province, is located between the Suez canal—a key transport route of Egypt connecting the Mediterranean—and the Red Sea.

Food safety, hygiene vital to developing export markets

Unhygienic food and the overuse of plant protection and stimulants on vegetables and fruits are major obstacles to guaranteeing food safety and exporting Vietnamese vegetables and fruits to foreign markets.

At a conference that discussed the production and consumption of vegetables and fruits for sustainable development in Hanoi on May 14, Nguyen Xuan Hong, director of the Ministry of Agriculture and Rural Development (MARD)'s Plant Protection, said that developed countries, especially the US, Japan, the Republic of  Korea, and countries in the EU, which have been the major importers of Vietnam goods, require high-quality, hygienic food, while ensuring environmental protection during their production.

Hong noted that demand from these countries is expected to increase in the coming years.

However, the issue of hygiene has been a great consideration for countries importing food. In addition, markets that cater to medium- and high-income consumers also have strict requirements on this matter.

A representative from the Ministry of Industry and Trade said the most important task is to follow information from markets and take timely measures.

He noted that the major drawback of Vietnamese fruits and vegetables exporters is inconsistency in resolving and exploiting information.

The lack of effective cooperation between management agencies has resulted in stocks of agricultural products piling up at border gates in recent days, causing damages for both farmers and businesses.

He remarked that management agencies should be able to find overall solutions to issues related to production, distribution, consumption, as well as exports to keep up with modern trends.

Investments in processing and preservation technologies, especially of small and medium units, should be given priority, he said, adding that Vietnam should have processing workshops in areas where the cultivation of crops is centred.

In addition, the country should also pay attention to food chains to ensure quality and hygiene.

Local authorities should mobilize investments for the production and trading of agricultural products as well as for providing relevant information to farmers.

He noted that trade promotional activities should be enhanced while expanding new markets through fairs, conferences, and advertisements in foreign markets.

Duong Phuong Thao, deputy head of MoIT's Department of Import-Export Department, said the annual export turnover of fruits and vegetables over the past five years has been high at 26.5% a year. The turnover increased from US$439 million in 2009 to US$1.1 billion in 2013.

Enterprises in the southern province of Dong Nai have been advised to innovate manufacturing technology, improve their brand names and boost trade promotion to anticipate opportunities offered by the formation of the ASEAN Economic Community (AEC) by the end of this year.

Talking about the AEC at a workshop in the province on May 14, Director of the provincial Department of Industry and Trade Le Van Danh said that once established, the AEC will help Vietnam expand its market, penetrate ASEAN partners’ markets, and participate in the global value chain.

The establishment will also eliminate most tariff and non-tariff barriers while helping Vietnam speed up reform and improve its economic institutions and international trade policies, and increase national competitiveness.

However, the increased opportunities are coupled with increased competition in product price and quality. The gap in incomes between AEC countries will force Vietnam to manage the free movement of goods, capital and skilled labour within ASEAN.

Twelve types of goods will receive integration priority, including farm produce, aviation, automobiles, electronics, tourism, and garment-textiles.

Dong Nai is home to around 20,000 enterprises. To anticipate opportunities and surmount challenges posed by the integration process, many have actively invested in expanding production scales and applying new technologies in business and production management.

Hanoi to host Land24 real estate exhibition

Land24 real estate exhibition is set to take place in Hanoi from May 28-31, expecting to draw the participation of major property developers from the three regions of Vietnam.

The first exposition of its kind will introduce “hot” property projects, including D'.Le Pont D'or, Goldmark City, Parkview Residence, R6 – Vinhomes Royal City, CT36 Dream Home, Mipec Riverside , The Crown – Mulberry Lane, Gamuda Gardens, The Sun Avenue, Mega Village, Vinhomes Central Park, FPT City Da nang.

The event,co-oganized by Land24 Real Estate Information Channel and Real Estate Project Supermarket System Supermarket STDA, is of great significance for clients, businesses, investors and the social community and will provide them with incentive policies in this field.

During the event, seminars will be held in the presence of famous real estate experts- Pro. Dr. Dang Hung Vo – former deputy minister of the Natural Resources and Environment and Dr. Nguyen Minh Phong from the Hanoi Institute for Economic and Social Development Studies.

Local company exports sprayers to Cuba, Myanmar

Duc Dat Plastic Company in the Tan Tao industrial zone plans to export around 16,000 sprayers used in agriculture and industry valued at US$120,000 to Cuba and Myanmar.

The company’s Vice Director Tran Thi Mai Trang said both nations are new markets Duc Dat has made their foray since late last year, adding that it is very important for her firm to explore the new markets after the EU market faces difficulties due to economic downturn.

Duc Dat Company has become a sole supplier of sprayers in Myanmar, Trang said, noting that Myanmar costumers like “made in Vietnam” products.

If businesses export high quality products at reasonable prices, they can secure a firm foothold in the Myanmar market, she added.

Companies urged to focus on food quality

Vietnamese firms need to enhance their role in the food industry value chain to supply more quality products and increase export of farm produce, according to the Ministry of Industry and Trade.

Speaking at a conference in HCM City on May 14 Deputy Minister of Industry and Trade Do Thang Hai said the agricultural sector not only met local needs with its diverse, quality products but also exported to many countries around the world.

Agricultural exports had increased strongly in recent years to more than US$30 billion last year, with Vietnam being among the world's largest exporters of many items like cashew, pepper, rice and coffee, he said.

"However, limited processing capacity, a lack of brands and exports via many intermediaries have resulted in low export earnings."

Held by the Vietnam Trade Promotion Agency on the sidelines of the first Vietnam International Food Industry Exhibition, the conference sought to come up with measures to add value to Vietnamese food products, improve their competitiveness, and promote them globally.

Pham Minh Duc, senior economist at the World Bank in Vietnam, said fragmented land ownership, quality control issues, low quality of seeds and other inputs, and poor techniques and misuse of inputs like water and pesticides were among the challenges faced by the agricultural sector.

"Increasingly liberalised and connected markets will drive competition from other low-cost countries such as Myanmar in rice and Kenya in coffee.

"Long-term sustainability issues related to climate change, especially in low-lying coastal areas, is another challenge."

Vo Thanh Do, deputy director of the Department of Processing and Trade for Agro-Forestry-Fisheries Products and Salt Production, said despite efforts to reduce them, post-harvest losses remained high at 20% for fruits and vegetables and 11%-13% for rice, resulting in high production costs and low quality and prices.

Vo Ngan Giang of the UN's Food and Agriculture Organisation said demand for many kinds of food, including meat, milk, eggs, rice, wheat, and cereal had shot up in the global market.

With the global population rising, an additional one billion tonnes each of cereals and beef and 460 million tonnes of meat are expected to be needed each year by 2050. With more people entering the middle class, demand for meat and high added-value food products are expected to rise.

Duc said Vietnamese firms had an opportunity to expand their markets through greater regional and global integration through the ASEAN Economic Community, the Vietnam-EU free trade agreement, and the Trans Pacific Partnership.

It would be hard for Vietnam to increase exports of many kinds of agricultural products since they had reached peak output levels, and the firms should instead focus on increasing their value-addition, he said.

They needed to improve quality management through the entire value chain from production to consumption to meet consumers' food safety demand, he said.

Do said the agricultural sector was taking steps to restructure production with a focus on quality, value, efficiency, competitive capacity and protecting the environment. By 2020 the agro-forestry and fisheries sector's value addition was expected to increase by 20%, and post-harvest losses would reduce by 20%.

EVN to divest from An Binh Securities

State utility Electricity of Viet Nam (EVN) will auction its entire stake of nearly 29 per cent, or about 11.48 million shares, in An Binh Securities Company on June 4.

The firms said in their online statements that the auction is open to both domestic and foreign investors. The shares have a combined value of some VND114.87 billion (US$5.47 million) and will be bid at an initial price of VND10,000 (48 cents) per share, equivalent to their face value.

EVN management board Chairman Hoang Quoc Vuong said the An Binh stake accounted for 0.08 per cent of the EVN's charter capital of VND143.40 trillion ($6.83 billion). The auction is part of the roadmap of the electricity company to divest from non-core businesses.

Last year, EVN completed divestments from Land Sai Gon and Land Central property companies, and partially withdrew from EVN Finance. It fetched EVN VND691 billion ($32.90 million) after it exited these businesses, finishing about 40.8 per cent of all capital it was supposed to divest following its reorganisation plans.

EVN leaders said the company was determined to totally withdraw from the banking, finance and insurance areas this year – the final year for it to accomplish the 2012-15 restructuring scheme, as required by the Government.

This year, it would complete divestments from An Binh Bank and Global Insurance Company, as well as EVN Finance. It would also reduce its stakes in several mechanical firms, besides submitting a plan to privatise the Power Generation Corporation 3 (Genco 3) to the Ministry of Industry and Trade for consideration.

Prime Minister Nguyen Tan Dung asked EVN to become a strong economic group by 2015, and tasked it to accelerate investment in the national grid and regulate the trade of electricity to assure adequate power supply for the nation by 2030.

"Although more and more private investors have taken part in the electricity sector, EVN still plays a decisive role in supplying power for the economy. Thus, its demand for capital will still be great in the coming years," said a joint EVN and An Binh report.

EVN is reportedly building a project to increase labour productivity and enhance production and business efficiency for the next five years, and this scheme is expected to be presented to the prime minister for approval by the end of this year.

The company reported last week that it produced and bought nearly 48 billion kilowatt hours of electricity during the first four months of this year. It spent about VND31.75 trillion ($1.51 billion) on the construction of power facilities during the period.

EVN was the founding shareholder of An Binh when the securities firm was established in 2006. The Ha Noi-based brokerage has VND397 billion ($18.90 million) in equity.

Vietnamese export items facing anti-dumping investigations overseas

Vietnamese export items are confronted by anti-dumping investigations abroad following official announcements from authorities there.

While Canadian officials have announced they will carry out an anti-dumping re-investigation into oil steel pipes imported from Vietnam, Turkish authorities said they would do so soon following a petition of Turkish polyester yarn producers.

The launch of those anti-dumping probes signals that Vietnamese exporters will continue to be challenged with more trade barriers when Vietnam’s economy integrates further in the world’s, local experts said.

The Vietnam Competition Authority under the Ministry of Industry and Trade on Tuesday said the Canada Border Services Agency (CBSA) will undertake an investigation into Vietnamese-made oil country tubular goods (OCTG) to reinforce the findings of another probe authorities released on April 2.

Oil country tubular goods are pipe and tube products used in thepetroleum industry.

The CBSA said the normal values established during the re-investigation, which is scheduled to be concluded by the end of September, will be effective for related anti-dumping cases in the future.

This will be the second anti-dumping investigation into oil steel pipes imported from Vietnam.

In July last year, the CBSA initiated a similar probe, which was the first of its kind in the North American country, into steel pipes imported from eight foreign countries, including Vietnam, following complaints by Canadian firms Tenaris Canada (in Calgary, Alberta) and Evraz North America Inc. (in Regina, Saskatchewan).

Another investigation into anti-subsidy was also launched by the Canadian authorities at the same time.

One month later, the CBSA announced that the estimated dumping margin for Vietnam amounted to 28.6 percent, the highest among the rates from 4.9 percent to 18.3 percent applied to Taiwan, India, Indonesia, the Philippines, South Korea , Thailand, Turkey, and Ukraine.

Regarding allegations of anti-subsidy, the CBSA said Vietnam had eighteen programs considered as subsidies with an estimated amount of subsidy of 19 percent, the highest rate among the eight countries, with rates ranging from three percent to 12.1 percent.

In December, the Canadian authorities slapped anti-dumping and anti-subsidy taxes of 53 percent and 19 percent on Vietnamese products.

Prior to the CBSA move, on July 11, the U.S. Department of Commerce (DOC) announced its final decision confirming dumping margins for OCTG imports from Vietnam, India, South Korea, the Philippines, Saudi Arabia, Taiwan, Turkey, and Ukraine, as well as steel pipes made in India and Turkey.

As a result, the DOC imposed an anti-dumping duty of 24.22 percent on steel firm SeAH Steel Vina Corporation, and 111.47 percent on Hot Rolling Pipe and other steel exporters in Vietnam as they had refused to fill in the DOC’s questionnaire.

The rate levied on Hot Rolling Pipe and other companies in Vietnam was the highest anti-dumping margin claimed by petitioners, according to the VCA.

The VCA on Monday also announced that Turkish authorities would start a similar investigation into polyester yarn imported from Vietnam.

The Turkish authorities said that they have received complaints from domestic manufacturers and considered that they had enough evidence to launch the investigation for a future lawsuit, the VCA said.

Vietnamese polyester yarn exports to Turkey are around US$120 million per year, just behind China and India.

This will be the fifth anti-dumping lawsuit against Vietnamese export goods and the third anti-dumping lawsuit against Vietnamese yarn, according to the VCA.

Vietnamese yarn has been subject to anti-dumping taxes when exporting to Turkey following the result of two anti-dumping lawsuits against the item in 2008 and 2012.

Revised Housing Law hoped to boost real estate market

The revised Housing Law to take effect from July will open a door widely for foreigners to buy houses in Vietnam, which is hoped to reduce real estate inventory and warm up the market.

Statistics by the General Department of Land Administration under the Ministry of Natural Resources and Environment showed that 427 Vietnamese settled abroad and foreigners have possessed houses in Vietnam.

This number is too low compared to over 80,000 foreigners living and working in the country.

Legal barriers and high property prices have blocked the housing door to many foreigners despite high inventory level.

The number of foreigners and oversea Vietnamese in need of house purchase is very high but only those getting married with Vietnamese have been able to do so, according to a representative from Phu My Hung Joint Venture.

Mrs. Helther from the US has become the first foreigner to get house ownership certificate at Phu My Hung New Urban Area after living in Vietnam for 16 years.

She has learnt about regulations for foreign house buyers and found they are too complicated. “It took me over nine months to buy the house” she told.

In 2009, the National Assembly issued Resolution 19 allowing foreigners to buy and own houses in Vietnam for 5 years. The following year, the Government released Decree 51 permitting foreigners living in Vietnam to possess an apartment at commercial housing projects in 50 years.

However they have showed limitations, resulting in limited foreign house buyers.

Clause 159 in the revised Housing Law allows three groups of foreigners to buy houses. The first are foreign organizations and individuals who invest in housing projects in Vietnam.

The second group comprises foreign invested companies, subsidiaries and representative offices of foreign firms, foreign investment funds, and branches of oversea banks in Vietnam.

The third group includes foreign individuals permitted to enter the country.

Under the new regulations, foreign organizations and individuals are eligible to buy houses, sign hire-purchase contracts, receive property as a present, and have commercial apartments and houses by inheritance.

They are authorized to purchase a maximum of 30 percent of apartments in an apartment block or 250 houses and villas in an administrative unit of ward level.

However they are unpermitted to own houses in areas for national defense and security as per Government’s regulations.

The above regulations are expected to help recover the real estate market in the upcoming time.

Many experts said that besides permitting foreigners to buy houses to settle in, the Government should approve them to resell or let the property out. This would further stimulate house purchase demand in high-grade segment which are among those with the highest inventory level.

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