Ministry rejects oil firms’ demand for price hike

The Ministry of Finance yesterday rejected a demand to hike retail prices again by three petrol companies who said they were incurring losses following the cut they made last month.

PetroVietnam Oil Corporation, Saigon Petro Co, and Dong Thap Petroleum Trading Co Ltd had cut their prices August 26 by VND500 a liter VND20,800.

The ministry added that measures would be taken to stabilize prices in case of global volatility.

Crude oil for October delivery on the New York Mercantile Exchange Wednesday settled at US$88.91 a barrel, while in Singapore, Vietnam’s largest fuel supplier, A92 gasoline went up by $4 to $121.79 a barrel, a rate which local distributors said would give them losses.

The ministry ordered distributors to ensure adequate supply.

The ministry also kept the VND300 surtax on a liter of gasoline for the fuel price stabilization fund.

Vietnam, India boost trade and investment cooperation

A seminar was held in Hanoi on Thursday to further boost the friendship, and economic, trade and investment cooperation between Vietnam and India.

As part of the 14th session of the Vietnam-India Joint Committee, the seminar was jointly held by the Vietnam Chamber of Commerce and Industry (VCCI) and the Indian Embassy in Vietnam.

Speaking at the event, VCCI General Secretary Pham Thi Thu Hang said that over the past time, the Vietnam-India relationship has seen positive developments with the signing of agreements on trade, double taxation avoidance, and investment encouragement and protection.

This is an important foundation for the two sides to strengthen their traditional friendship and cooperation in all fields, she stressed.

She expressed her wish that the economic, trade and investment cooperation between the two countries will further develop in the future, especially when the India-ASEAN Free Trade Agreement (FTA) comes into effect this year and a FTA on service and investment is now under negotiation.

Indian Ambassador to Vietnam Ranjit Rae affirmed that his embassy will do its best to boost the friendship, and economic and trade cooperation between the two countries.

Participants at the seminar were introduced to India’s investment policies and environment as well as its overseas investment law.

Vietnam’s exports to US up 20 pct

Vietnam’s exports to the US in the first seven months of this year earned more than US$9.63 billion, a surge of 20.7 percent against the same period last year, according to the US International Trade Commission.

Among Vietnam ’s export items to the US, garments and textiles took the lead with $3.64 billion, a year-on-year increase of 18 percent, followed by footwear with nearly $1.15 billion, up 24.5 percent, and wood products with $998.5 million, up 4 percent.

The country’s electric and audio equipment brought home $485 million while fisheries and seafood generated $401 million.

During the reviewed period, Vietnam imported $2.46 billion worth of goods from the US, a rise of 19.9 percent over 2010.

Cotton materials, including yarn and cloth, topped the country’s import items from the US with turnover standing at $282.8 million, a year-on-year increase of 123 percent. It was followed by transport vehicles with $210 million, up 50 percent; and machinery, mechanical equipment and spare parts with $207.4 million, up 7 percent.

Vietnam-US two way trade is expected to reach $20 billion this year, up 10 percent against 2010 and a 13-fold increase over 2001.

Brazil inspects Vietnam’s fibers for dumping

Brazil has officially started inspecting synthetic fibers imported from Vietnam for possible dumping after receiving complaints from three Brazilian companies, the Competition Management Department under the Vietnamese Ministry of Industry and Trade said on Wednesday.

The department said all fibers imported between April 2010 and Match 2011 would be inspected after Vicunha Têxtil S/A, Jofegê Fiação e Tecelagem Ltda and Fiação Alpina Ltda accused Vietnamese producers of dumping.

At present, Brazil imposes an 18 percent tariff on Vietnamese fiber imports.

In 2008 Brazil added Vietnam and China to the list of countries subject to anti-dumping inspection on leather footwear imports.

But the Brazilian Association of Footwear Industries later demanded Vietnam to be exempted because leather shoe imports from Vietnam hadn’t reached a level to warrant anti-dumping inspection.

On April 6 this year, Brazil decided to impose an anti-dumping tariff of US$4.1 per kg on synthetic fibers imported from China for the next five years.

Along with Vietnam, synthetic fibers imported from Turkey are also subject to inspection this time.

Ho Chi Minh City bans unsafe toys

The Ho Chi Minh City quality authority has ordered three toy producers to stop selling some of their products that fail to meet safety standards and pull them off shop shelves.

The Directorate for Standards, Metrology and Quality (STAMEQ) has also banned three imported toys.

It said three out of 19 locally-made toys that had been tested failed to meet certain safety and quality standards.

A shell-shaped rattle made by Trinh Quy Anh toy maker in District 6 failed to meet standards related to size, shape, and durability while tested by the Quality Assurance and Testing Center 3 (QUATEST 3).

Baby walker type 4 made by Dai Phat Tai Co Ltd in Binh Chanh District failed certain safety tests.

A toyshop on Hong Bang Street, District 11, which also makes the Song Ma Chinese chess set, was ordered to stop selling it since the paint covering the chessmen did not meet safety standards.

The lead content in it was 835mg a kilogram against an allowed limit of 90mg, while the chromium content was three times the allowed limit, QUATEST 3 said.

A joint inspection with the city’s market management agency had also found three imported toys with excessive chemical content, STAMEQ said.

One of them was a battery-run robot imported by a branch of MTV Ha Thanh Co Ltd and sold in a toyshop in District 6.

Le Tri Co Ltd said it had already destroyed some radio-controlled cars that contained toxic substances as ordered by the authorities.

Hong Phat toyshop said it had sold out all its rabbit-shaped piano toys while waiting for QUATEST 3’s test results.

Phan Minh Tan, director of the city Department of Science and Technology, urged consumers who had bought the toy to return them.

Fertiliser levels to meet needs of agriculture

PetroVietnam Fertiliser and Chemicals Corporation has said it would increase fertiliser imports and maintain domestic production to ensure a sufficient supply for the winter-spring crop.

The corporation said that it would keep at least 70,000 tonnes of fertiliser in stock.

Last month, the corporation signed a contract to import more than 40,000 tonnes of fertiliser of various kinds.

The country's production capacity of fertiliser stands at nearly 1 million tonnes, including Phu My Urea Fertiliser Plant with a capacity of 800,000 tonnes and Ha Bac Fertiliser Plant with a capacity of 180,000 tonnes, according to the Ministry of Industry of Trade's Domestic Market Department.

Two new fertiliser plants are expected to be put into operation by year-end, including the Ca Mau Fertiliser Plant with a capacity of 800,000 tonnes a year and the Ninh Binh Fertiliser Plant with a capacity of 560,000 tonnes a year.

The two new plants will increase the country's fertiliser output to 2.34 million tonnes, exceeding the domestic demand of 2 million tonnes a year.

Prices of fertiliser had risen dramatically during the last few weeks due to global price hikes in fertiliser, said Nguyen Dinh Hac Thuy, deputy chairman of the Fertiliser Association of Viet Nam.

The wholesale price of Phu My urea fertiliser rose to VND11,000 from VND10,300 on September 1.

HCM City firm wins tourism contract

The local firm Coteccons has won a contract to work as the main contractor for the Ho Tram Tourism Complex project in the southern province of Ba Ria-Vung Tau.

The contract was signed by the investor of the Ho Tram Tourism Project, Canadian Asian Coast Development Corporation, and Coteccons last week.

Coteccons is responsible for the main civil engineering items and will manage the project, with the first phase of the project valued at VND3.2 trillion (US$155 million).

The first phase will be completed in 2013.

With a total investment of $4.2 billion, the 160-ha Ho Tram strip is ranked as Viet Nam's first large-scale integrated resort, and among the largest in Southeast Asia.

Construction of the Ho Tram complex includes a five-star hotel, a casino and a golf course.

India-VN business forum launched

The Viet Nam Chamber of Commerce and Industry (VCCI) will organise a business forum today in Ha Noi in co-operation with the Indian Embassy in Viet Nam.

Many top Indian enterprises in the fields of technology, construction, machinery, real estate, banking and transport will join the forum.

The VCCI will also publish a directory book of the two countries' forum members which will be available at the event.

Petrolimex granted Lao licence

The Viet Nam National Petroleum Corporation (Petrolimex) officially received its investment licence in Laos at a ceremony held at the Laos International Convention Centre.

Petrolimex will now be able to directly conduct business activities in Laos with the co-operation of Chevron, the world's third largest oil group.

Petrolimex has already established a limited company in Singapore and a representative office in Cambodia.

Indian-built IT centre to open

A centre for information and communications technology training will be opened in Thanh Xuan District tomorrow. It is a gift from the Indian Government to Viet Nam.

The project has been built at a cost of over VND57 billion (US$2.7 million) with VND46 billion ($2.2 million) worth of equipment, software, text books and teachers' training paid for by India's non-refundable aid.

Once operational, the centre will train programmers, professional technicians, State employees and enterprise managers for Ha Noi and nearby regions, with the aim of building an e-administration for the capital by 2015.

Growth in cement projects slows

Only two cement factories have been put into operation since the beginning of the year, the Ministry of Construction has said.

According to the ministry's plan, about 10 cement plant projects are set to be finished this year.

These projects were forced to a complete stand-still and haven't even begun construction. Several projects were left unfinished, awaiting further bank loans.

French IT firms' reps visit VN

Four French information technology enterprises have paid a three-day visit to Ha Noi and HCM City since Monday, according to the French Embassy in Viet Nam.

ESI Group, MEGA International, SYSUN Technologies and Worketer spent the trip learning more about the IT developing potential of Viet Nam.

The visit aimed to intensify mutual trading and co-operation in the field of information and technology between the two countries.

FTSE adjusts Viet Nam Index series

Changes to the FTSE Viet Nam Index will be applied next Monday, with expected impacts on the portfolios of a number of Vietnamese exchange-traded funds (ETFs).

The FTSE Group announced in its FTSE Viet Nam Index Series Quarterly Review this month that shares of software producer FPT and real estate developer Hoa Sen Group (HSG) would be removed from the FTSE Viet Nam Index, to be replaced by shares of food producer Masan Group (MSN) and Becamex Infrastructure Development Co (IJC).

FTSE would also add Phu Nhuan Jewellery (PNJ) to its FTSE Viet Nam All-Share Index, while removing Agribank Securities (AGR), Minh Phu Seafood (MPC), Cotec Construction (CTD), Lam Son Sugar (LSS), Sacombank Securities (SBS), Southern Rubber Industry (CSM) and real estate developer Hoang Quan (HQC).

The FTSE Viet Nam Index Series, including the FTSE Viet Nam All-Share Index and FTSE Viet Nam Index, was launched by the FTSE Group in 2007. The Viet Nam All-Share Index is a broad market benchmark covering shares representing 90 per cent of market capitalisation, while the Viet Nam Index is a tradeable index comprised of companies that have yet to come close to their foreign ownership caps.

Market insiders predicted that two popular ETFs, the Market Vectors Viet Nam (VNM) ETF managed by Van Eck Global and FTSE Vietnam Index X-Trackers managed by Deutsche Bank, would unload FPT and HSG shares while picking up MSN and IJC shares.

X-Trackers managed total assets of 230 million euros as of September 12, while VNM managed a portfolio worth $257 million, 68 per cent of which was invested in Viet Nam.

The VNM fund currently holds 825,000 FPT shares out of total 193 million outstanding shares, and 4.3 million HSG shares out of total 317 million outstanding shares.

Refinery back at full throttle
 
Two months after the first maintenance work was carried out on the Dung Quat Refinery, operations resumed at full capacity on Tuesday, two days earlier than scheduled.

The refinery actually resumed operations on August 26 at 85 per cent capacity, but this was increased to full throttle from noon yesterday, said Nguyen Hoai Giang, general director of the Binh Son Oil Refining and Petrochemical Co Ltd.

Since it resumed operations, the refinery has produced about 70,000 tonnes of oil and petrol, including 40,000 tonnes of diesel oil, 21,000 tonnes of petrol and 10,000 tonnes of liquefied petroleum gas.

Giang added that the resumption of operations at the Dung Quat Refinery played an important role in lifting the burden from the shoulders of other petroleum companies that had been forced to import petrol at high exchange rates and expensive transport costs.

Giang said that during the maintenance work, experts fixed 55 technical problems.

Experts also increased the refinery's crude oil capacity by 34 per cent, so that operations could continue uninterrupted when bad weather disrupted the delivery of imported oil.

Operations started at the refinery in February 2009, and to date, it has imported more than 12 million tonnes of crude oil.

HCM City airport car tolls to rise in October

Tolls for cars to domestic and international terminals at HCM City's Tan Son Nhat International Airport will be increased next month.

The toll for cars with less than five seats will be doubled to VND10,000 (US$0.5), while for cars with 7-15 seats it will be VND15,000 ($0.7) and cars with 16-30 seats and more, VND 20,000 ($1).

About 9,000 cars visit the terminals each day.

Indian firms: Vietnam is gateway to ASEAN markets

Indian companies are seeing Vietnam as a hub for reaching out to the whole ASEAN region and that explains why many of them are coming to explore this market, heard a business forum in HCMC on Tuesday.

At the Vietnam-India forum, Abhay Thakur, Indian consul general in HCMC, pointed out diverse investment areas in Vietnam that are attractive to Indian companies, including infrastructure, power, information technology, auto-components, banking and finance, and minerals.

The Vietnam Chamber of Commerce and Industry (VCCI) and the Federation of Indian Chambers of Commerce and Industry (FICCI) organized the event for nearly 20 representatives of visiting Indian companies to meet with their local counterparts in HCMC as well as the Mekong Delta provinces of Vinh Long, Dong Thap and Tra Vinh.

Vo Tan Thanh, director general of VCCI in HCMC, told the forum that opportunities were opening for Indian companies to invest in infrastructure development as the Vietnamese Government had identified this as a breakthrough for Vietnam to sustain its economic growth.

Thanh said it was estimated that Vietnam would need US$70-80 billion for development of roads, railway and seaports in the next five to ten years, and up to US$140 billion if energy infrastructure was included. To have this huge investment, Vietnam will have to find capital from foreign sources in addition to local ones.

Ninad Karpe, who leads the Indian business delegation from FICCI, told the Daily at the forum that many participants of the large delegation were visiting Vietnam with their viable planes to invest and do business in this country.

The strong interest made Karpe believe that the delegation would reap good results when they wrapped up their trip. “We are hoping that by Friday we will have some in-principle partnerships between our delegation from India and Vietnamese businesses.”

Karpe, who is also CEO and managing director of Aptech Global Learning Solutions, said Indian businesses were looking to partner with Vietnamese partnerships and invest in small- to large-sized projects depending on sectors in this market.

“I think the opportunity (for partnerships and investment) is there and they will have good partnerships,” Karpe said, adding that his delegation had received keen interest from Vietnamese companies.

Karpe said now was the right time for the emerging countries like India and Vietnam as well as their enterprises to work together to become stronger and weather the impact of uncertainties in developed nations.

He assured that many Indian companies were well-positioned to invest in Vietnam, a market that can serve as a springboard for enterprises from that country to grow and penetrate the ASEAN market of around 600 million people.

Indian consul general Thakur said in support of Karpe’s view that overseas investments by Indian companies in the 2010-2011 financial year jumped by 144% to US$43.9 billion, from about US$18 billion in 2009-2010.

Thakur said Indian investment in Vietnam had exceeded US$500 million, with a very high rate of capital realization. In the year to date, Indian companies have had their nine new investment projects approved with combined registered capital of US$11.2 million.

An Indian feed mill by Venky’s was inaugurated in Tay Ninh Province this year and Indian sugar and cashew processing facilities are expanding, Thakur said and unveiled more Indian new investments.

“In the near future, we will see the inauguration of a large instant coffee plant in Dak Lak Province by CCL and a major Indian Carbon Black facility in Vung Tau by Phillips Carbon Black,” he said. “Fortis Healthcare of India is reportedly acquiring a 65% stake in Hoan My Medical Corporation and Marico of India is acquiring an 85% stake in ICP.”

To attract more Indian investors, Thakur underlined the importance to create specific opportunities. He said the US$5-billion greenfield steel plant proposed by Tata Steel in Ha Tinh Province was still awaiting an investment license more than three years after the Indian steel giant clinched a memorandum of understanding with Vietnam Steel Corp.

Besides investment, India has achieved expanding trade with Vietnam. Thanh of VCCI HCMC, told the forum that the two countries saw their bilateral trade surpassed US$2.7 billion in 2010, a whopping increase of 34.4% over 2009. Vietnam’s exports to India last year surged by over 136% year-on-year to US$991 million worth of coal, pepper, electronic parts, rubber latex, steel and other products.

Thanh said two-way trade between Vietnam and its strategic partner exceeded US$2 billion in the first seven months of this year, with India registering revenue US$1.3 billion from exporting animal feed, mobile phones, machines, pharmaceuticals, plastic items among others.
 
Five-star cruise ship brings 1,800 tourists to city

Some 1,800 international tourists, mainly from Singapore, Malaysia and Australia, arrived in HCMC on board the five-star cruise ship SuperStar Virgo of Star Cruises cruise liner.

Saigontourist Travel Service Co. is taking them to many famous tourist attractions around the city before the ship departs for Malaysia this afternoon.

Saigontourist said the company expected to welcome over 45,000 international tourists coming to Vietnam in the first nine months by several large cruise ships such as Costa Classica, Costa Romantica, SuperStar Virgo, Princess Daphne, Amadea and Pacific Venus.
 
360 firms to join food/hotel show in city

The annual Food and Hotel Vietnam 2011 will be held in HCMC from September 28 to 30 with 360 companies from 31 countries and territories taking part to showcase their latest products and services.

Over 80% of the participating companies will come from abroad and demonstrate the latest equipment and trends in the food and catering industries, including food and beverages, processing and packaging machinery, and consumer goods, organizers said at a press briefing on Tuesday.

There will also be 15 international group pavilions at the exhibition at the Saigon Exhibition and Convention Center (SECC) in District 7, representing Belgium, France, Australia, South Korea, Germany, Singapore, the U.S. and Poland.

According to the organizers, Food & Hotel Vietnam plays an important role in building Vietnam’s reputation as a growing tourism destination and its potential for foreign investment.

According to the organizers, Food & Hotel Vietnam 2011 will help raise the quality benchmark of Vietnam’s food and hospitality industry through specialized events that will give local Vietnamese professionals insights into international service standards.

The Vietnam Culinary Challenge will return for its fourth edition at Food & Hotel Vietnam 2011, Vietnam’s most comprehensive food and hospitality trade exhibition for the business and industry. The event will display culinary skills by some of the best Vietnamese chefs.

Organized by the Saigon Professional Chefs’ Guild and under the patronage of the HCMC Tourism Association and Food&HotelVietnam 2011, the Vietnam Culinary Challenge has been recognized by the local culinary community as one of the key platforms for chefs to promote and present their expertise and techniques.

This year’s competition will include even more team and individual challenges. Spectators will be able to catch live in action competitors participating in 16 categories for the team and individual challenges.

The competition encourages the exchange of expertise among the culinary community, thereby raising Vietnam’s culinary standards.

The competitors will also be reviewed by a distinguished panel of international judges from Australia, Germany, Hong Kong, Korea, Indonesia, Macau, Malaysia, the Philippines, Singapore, Switzerland and Vietnam.

Food & Hotel Vietnam 2011 is also entrenched in other areas of the industry, with competitions to serve other professions such as baristas and sommeliers. Returning after a successful launch in 2009, the Vietnam Barista Competition (VBC) will be held at the event, whereby the best of Vietnamese baristas will battle for the title of the country’s champion.

Food & Hotel Vietnam 2011 is being organized by the Vietnam Chamber of Commerce and Industry’s Exhibition Service Co. (Vietcham Expo) in conjunction with Singapore’s Exhibition Services Pte.
 
Corporate income tax reduction in the offing

Vietnam will likely slash the corporate income tax from next year to make life easier for enterprises, but will mull raising the value-added tax, said the chairwoman of the Vietnam Tax Consulting Association.

Nguyen Thi Cuc, former deputy head of the General Taxation Department, told a seminar in Hanoi on Tuesday to review the two tax laws, said that the current corporate income tax rate of 25% is average compared to the region, but is still substantially higher that those in Hong Kong and Singapore. Therefore, the tax rate will be slashed to promote business, said Cuc of the Vietnam Tax Consulting Association that was establish in 2008 as a semi-public entity.

Two scenarios have been put forth on the tax reduction, she said.

In the first scenario, the tax rate will be slashed to 23% next year and further cut to 20% from 2016 onward. Meanwhile, the second scenario calls for the sharp fall to 20% right from next year.

To harmonize the interests of both the State and enterprises, the first scenario is preferred, she told the gathering.

Cuc explained that a low tax rate would provide a better financial leverage for enterprises, encouraging them to reinvest their earnings into business that in the end would contribute more to the State coffer.

Regarding possible changes to the value-added tax, Cuc said the dual-rate mechanism – at 5% and 10% for different groups of products and services – should be made a single rate of 10% in the future, likely from 2020.

Another scenario is to maintain the current mechanism, but to apply the high rate of 10% on five key groups of products and services that are currently subject to the 5% rate. It is unclear which groups of products and services will be subject to the higher rate.

Many experts at the meeting on Tuesday uphold the views by the Vietnam Tax Consulting Association. However, these suggestions must be considered by the Ministry of Finance and approved by the National Assembly.
 
Mekong Delta to get nine focal tourism projects

Vietnam’s tourism industry will invest in three national tourism areas and six national tourist sites in the Mekong Delta, according to Vietnam National Administration of Tourism (VNAT).

Nguyen Van Tuan, head of VNAT, said the projects in question are Thoi Son Island, Phu Quoc Island and coastal areas, Nam Can Mangrove Forest, Lang He resort, Dong Thap Muoi area, Ha Tien Town, Tram Chim National Park, Ong Ho Isle and Sam Mountain.

In addition to these tourism venues, each province will also combine its strengths with tourism development strategies, Tuan said on the sidelines of an international tourism conference in HCMC on Tuesday.

The provinces of Bac Lieu, Ca Mau and Soc Trang, for example, will take advantage of their traditional festivals such as Ok Om Bok Festival or Ngo Boat Race to attract tourists. Meanwhile, Can Tho City and Phu Quoc Island will be the main tourist sites of the whole region.

Special features including eco-tourism need to be highlighted to boost the region’s tourism. Connectivity among tourism products and services between provinces should be built.

The Mekong Delta is targeting 2.7 million international tourists and 5.2 million visitors in 2015. Only 1.2 million foreigners came to the region in 2010 while there was no accurate number of domestic visitors.

Greenbiz exhibition and conference opens in Ho Chi Minh City

A conference and exhibition on green business solutions (Greenbiz 2011) opened in Ho Chi Minh City on September 15.

The event was organised by the Ho Chi Minh City Investment and Trade Promotion Centre, the European Chamber of Commerce in Vietnam (EuroCham) and the Vietnam Chamber of Commerce and Industry (VCCI).

Participants include representatives from EuroCham and the Ministries of Industry and Trade, Construction, Finance and Natural Resources and the Environment, along with hundreds of domestic and foreign businesses.

The conference held an online dialogue with Deputy Prime Minister Nguyen Thien Nhan. He said that through this event, Vietnam will learn to develop green technologies towards sustainable development in the future.

This is the second time such a conference and exhibition has been held in Vietnam, aiming to analyze challenges and provide solutions for sustainable development to mitigate damage to the environment.

Deputy Minister of Industry and Trade Tran Tuan Anh said recently, Vietnamese businesses have started using green technologies in industrial production, especially energy. However, the process requires the responsibility of all State management agencies, businesses and the community.

German region opens Vietnam centre

The Chamber of Commerce and Industry (IHK) of Pfalz region of Germany on September 14 opened a Vietnam centre called “Kompetent Centre Vietnam”.

The centre will provide help and consultancy to German enterprises regarding investment, market, production, laws, policies and tax in Vietnam.

IHK will also offer help in seeking suitable partners and play as a bridge with German businesses operating in Vietnam.

A Vietnam Economic Day was held to mark the centre’s inauguration. According to IHK, Vietnam attracted much interest from German enterprises thanks to its socio-economic development achievements in recent years and potential.

PV