Internet seminar to look at Viet Nam

Cloud computing, big data, mobility and social networks will top the agenda at a seminar titled Viet Nam Information and Communication Technologies Outlook to be held in HCM City this week.

Information security on new platforms would also be discussed at VIO 2013, Chu Tien Dung, chairman of the HCM City Computer Association (HCA), said.

Experts would provide an overview of new technology trends and applications, development of ICT infrastructure, and opportunities and challenges in the country's ICT industry, he said.

Many local and foreign firms like F5, Cisco, Sao Bac Dau, Trend Micro, and EMC will display their latest technologies and products.

To be organised by the HCM City Department of Information and Communication and the HCA on September 20, the 18th annual seminar will see the participation of leading local and foreign ICT experts, state agencies, businesses, and ICT users.

The HCA also said it would organise a function to give away awards to the country's top ICT enterprises on September 19, the day it marks its 25th anniversary.

The awards are given away every year to recognise, popularise, honour, and encourage firms in the ICT industry, to promote and raise their competitive ability.

HCM City Metro wins investment

Foreign donors have agreed to contribute 857 million euros (US$1,137 million) for the first stage of the project to build a 8.9-km section of Metro Line No 5 linking Sai Gon Bridge in Binh Thanh District to Bay Hien Intersection in Tan Binh District.

The HCM City Management Authority for Urban Railways (MAUR) said ADB will finance US$500 million, EIB 150 million euros, and the Spainish Government 200 million euros. The remaining will be financed by the Vietnamese Government's counter capital.

This is the third metro route in HCM City. The other two are Metro Line No 1 running from Ben Thanh Market in District 1 to Suoi Tien Tourist Park in Thu Duc District and Metro Line No 2 which links Thu Thiem New Urban Area in District 2 to An Suong Bus Station in District 12.

Construction of Metro Line No 5 is scheduled to start in 2015 to link the Metro Line No 1 (construction of which began in 2012) and Metro No 2 (construction to start next year).

According to the HCM City Urban Railway Management Board, after completion, Metro Routes No.1, 2 and 5 will each carry about 526,000 passengers a day.

Tax cuts likely for micro financiers

Micro-finance institutions are likely to be exempted from corporate income tax for two years, according to a circular drafted by the Ministry of Finance (MoF).

Micro-finance institutions mainly provide banking services to individuals and households with low income as well as super small businesses.

Under the draft, micro-finance institutions licensed by the State Bank of Viet Nam prior to January 1, 2014 under the Law of the Credit Institutions, would qualify for the tax break.

After the two years of tax exemption, the institutions would also enjoy a 50 per cent income tax reduction over the next four years on revenues derived from micro-finance activities.

The length of the tax exemption or reduction would be calculated from the first year the micro-finance institutions had earned taxable income.

Tax breaks for other micro-finance institutions would be 20 per cent, but the rate would drop to 17 per cent from January 1, 2016.

Belgian Minister prepares to study Hiep Phuoc Port complex

A delegation of Belgian seaport experts will pay an official visit to HCM City in November to learn about the potential of Hiep Phuoc Port in the city's Nha Be District, according to a Belgian official.

The delegation will be led by the transport minister of Flanders, a northern region of Belgium.

Speaking at a recent conference with Nguyen Huu Tin, the city's People's Committee's vice chairman, Belgian Ambassador to Viet Nam Bruno Angelet asked the city to provide more information on the potential of the Hiep Phuoc Port.

This would help prepare for the visit of the transport minister of Flanders in November, he said.

Construction of the Hiep Phuoc Port in HCM City's Nha Be District began in 2009 and is expected to be completed next year.

Hiep Phuoc Port, which is 30 kilometres from the city centre and 17km from Tan Thuan Export Processing Zone, will cover more than 100 hectares in Hiep Phuoc Industrial Park in Hiep Phuoc Commune along the Soai Rap River.

Upon completion, the port's pier length will rise to 1,800 metres. It will be capable of clearing about 18 million tonnes of cargo every year.

The Soai Rap River is being dredged to a depth of 9.5 – 11.5 metres, which will help the Hiep Phuoc Port to meet transport demand by receiving larger vessels, according to the port's general director Le Cong Minh.

Tin said the second phase of the Soai Rap River dredging project was going smoothly. He said the city needed support for capital, technology and human resource training for the project.

In the first phase, the river was dredged to a depth of 9.5 metres, allowing the Hiep Phuoc Port to receive large ships of 50,000DWT.

After the second phase, when the river is dredged to a depth of 11.5 metres, the port will be able to receive larger vessels of 50,000-70,000DWT.

The Soai Rap River dredging project also will help reduce the distance from the East Sea to HCM City by about 30 kilometres.

Once completed in 2014, the project will help speed up the construction of the Hiep Phuoc Port.

Of the VND2.8 trillion (US$134 million) investment, VND2.2 trillion ($105 million) comes from Belgian Official Development Assistance (ODA) loans and the rest from the city budget, according to the city's Department of Transport.

Nguyen Van Cong, deputy minister of Transport, said the project would help increase connectivity among seaports and enhance logistics and export services in HCM City.

The use of the Soai Rap River, together with Cai Mep – Thi Vai River in Ba Ria-Vung Tau Province, is expected to help the southern economic zone become one of the country's most important zones and Hiep Phuoc Port, one of the major ports in the region.

PM demands dairy hike explanation

The Prime Minister asked the ministries of Health and Finance on Thursday to report the high price of milk on the local market.

A customer selects a dairy product for her children in HCM City's Nguyen Dinh Chieu Superrmarket.

Because the milk price is not controlled by the Government, dairy companies can increase prices at any time.

Some milk products were listed at US$4-5 (VND80,000-100,000) per unit on customs declarations forms, but were retailed for VND400,000-900,000, according to the General Customs Office,

The Pricing Management Department of the Ministry of Finance said the ministry had not conducted any investigation of milk prices because the product was not under its control.

Reports on milk products sent to the department classified those for children under six as "nutrition products", placing them outside the scope of the ministry.

In August, the Ministry of Finance asked the Ministry of Health to provide a list of companies producing and trading milk products, as well as a list of certified milk products for children under six years old of which the price had been stabilised and a list of nutrition foods for children under six.

However, almost all firms did not call the items "milk products" when submitting the lists.

In general, the consumer price index (CPI) is forecast to increase 1 per cent this month due to several factors, including the rainy season, increasing demand and higher tuition as the new school year begins.

Meanwhile, the Ministry of Finance sent official letters to Petrolimex and Dong Thap Oil and Gas Trading Ltd Company, two petrol dealers, on Thursday to ask the two firms not to change the current retail prices of oil and petrol.

MoF planned to cooperate closely with the Ministry of Industry and Trade to follow fluctuations in oil and petrol prices on the world market in order to manage prices on the local market.

To ensure price stability this month, the Pricing Management Department proposed ministries, sectors, provinces, cities and enterprises continue stabilising the price of goods and services, ensuring a balance between supply and demand, organising trade promotion programmes and not increasing prices for health care services.

Farmers face fight as rice exports drop off

Rice exports for September is estimated at about 650,000 tonnes, bringing the third quarter's total to 1.84 million tonnes, 230,000 tonnes less than planned.

A Viet Nam Food Association (VFA) report says enterprises exported 620,532 tonnes of rice last month for a FOB (free-on-board) value of US$264.34 million, a year-on-year fall of 32.55 per cent in volume and 33.09 per cent in value.

With supply outstripping demand, rice exporters have faced considerable difficulties this year. Recently, the Thai government decided to slash its rice prices to clear its stock, affecting the rice market in Asia and posing a greater challenge for local exporters.

The Thai Government has decided to lower the price of inventory rice through several means, including organising auctions for exporters, auctioning on the Agricultural Futures Exchanges of Thailand (AFET), selling rice under government contracts and even selling directly to international traders.

However, results of such moves have not been as good as expected since demand is weak and buyers are still cautious about Thailand's motivation for depleting its inventory.

Buyers are still waiting and watching the market's movements, as they are not sure of the prices that the Thai government will accept; and how deep the price cut will be.

In general, a strong reduction in Thai rice prices has had global impacts, and other Asian markets have been particularly affected.

In addition, India is going to harvest its major Kharif crop, which is going to be a bumper crop this year, yielding 90 million tonnes.

There is yet another development that is expected to affect the world rice market.

The Indian parliament has recently passed the Food Security Bill, which is the biggest national food programme in the world that will support 800 million people or 67 per cent of the Indian population. The programme is expected to cost $18 billion.

But there are concerns over how such a huge programme can be carried out.

Export prices of Indian rice have reduced much recently, mainly due to a depreciation of its currency, the rupee, while prices in the domestic market have been stable, the VFA said.

China has continued to be the biggest importer of Vietnamese rice this year, but there has been a slowdown ahead of the harvest season

Demand from Africa has been stable, but there will be more critical competition among rice exporters when the prices of Thai, Indian and Pakistani rice all reduce, shortening the price gap with Vietnamese rice.

Philippines and Indonesia will look to import rice in the remaining months of the year, but there will be fierce competition among rice suppliers to meet this demand, VFA said.

The report said that as of August 31, Viet Nam had exported 4.67 million tonnes of rice for a FOB value of $2 billion, a reduction of 7.86 per cent in volume and 10.9 per cent in value from the same period last year.

VN, Japan firms look to build co-operation

A conference intended to accelerate industry and trade co-operation between Viet Nam and Japan took place yesterday in Tokyo.

Co-organised by the Ministry of Industry and Trade's Trade Promotion Agency and the Trade Office at the Vietnamese Embassy in Japan, the forum witnessed the participation of over 120 small and medium-sized enterprises from the two nations, involving sectors such as iron and steel, electronics, plastic and agricultural machinery.

Speaking at the event, the Trade Counsellor at the Vietnamese Embassy in Japan, Nguyen Trung Dung, said businesses have enjoyed favourable conditions to accelerate bilateral co-operation due to the two countries' strategic partnership.

Recently, Viet Nam's Government has approved the country's industrialisation strategy as part of Viet Nam-Japan co-operation agreement towards 2020 with a vision to 2030.

Under the plan, Dung said that Viet Nam has defined six industries that would be prioritised for co-ordination with Japan in the near future, including electronics; agricultural machinery; agricultural and seafood processing; ship building; the environment and energy saving; and the manufacture of cars and spare parts.

During the event, Japanese companies heard about the status of Viet Nam's investment environment and its policies on prioritised industries and explore co-operation opportunities with Vietnamese firms.

Japan is now Viet Nam's second biggest trade partner. Two-way trade hit US$25 billion in 2012 and is estimated to reach $28 billion in 2013, up 12 per cent year-on-year.

Phu Quoc urged to become a special economic zone

The project to turn Phu Quoc into a special administrative-economic zone is under scrutiny at a seminar in Phu Quoc island district in the southern Kien Giang province.

In his opening speech on September 16, Deputy Prime Minister Vu Van Ninh said Phu Quoc is a great potential island district. As early as in 2004, the Prime Minister already approved an overall plan for development of Phu Quoc island until 2020.

In order to make new breakthroughs in economic development, the political bureau of the party central committee has assigned the Government to formulate projects to build special economic zones such as Van Don in Quang Ninh province, Van Phong in Khanh Hoa province and Phu Quoc in Kien Giang province.

The Deputy PM asked the participating scientists and experts to consider every possibility of turning Phu Quoc into a special economic zone with new breakthroughs in terms of institutions and laws. Many argued about whether to build Phu Quoc into a city late this year or to focus on forming a special zone in the coming time.

They also emphasized the need to introduce the special economic zone law into the Constitution and build a mechanism for Phu Quoc to create competitive products in the international market.  

Shrimp exports to reach US$2.6 bln in 2013

Vietnam expects to earn around US$2.6 billion from shrimp exports in 2013, up by 15 percent against last year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

The positive forecast has been attributed to the sharply increasing price of domestic shrimp, which is expected to bring higher profits to shrimp breeders and accelerate shrimp hatching to ensure a steady supply for export.

The expected hike in the export value has also been influenced by the US Department of Commerce’s (DoC) recent confirmation that Vietnamese businesses trading with the US do not dump their frozen warm-water shrimp products on the market at costs that undercut domestic producers.

This key recognition will also help boost Vietnam’s shrimp exports to other major markets such as the EU and Japan.

Vietnamese enterprises’ turnover from shrimp exports is now at least US$250 million per month.

VASEP have also revealed that Vietnam earned over US$337 million from shrimp exports to the US, accounting for one quarter of the country’s total shrimp exports, in the first seven months of this year.

Meanwhile, shrimp exports to the Japanese and EU markets have seen year-on-year growth of 11% and 3% respectively over the reviewed period.

Vietnam has earlier planned to make export earnings of US$2.4 billion from shrimp this year.

Vinamilk plans to build a factory in US

The Vietnam Dairy Products Joint Stock Company (Vinamilk) is prepared to invest in building a milk factory in the US.

After being licensed by the US Food and Drug Administration (FDA) to export its products to this potential market, the company will build a milk factory in the US, said Mai Kieu Lien, Chairman and general director of Vinamilk.

At present, Vinamilk has a powdered milk factory in New Zealand. The company is expected to put the milk production line into operation to supply fresh milk to the international market.

Lien said Vinamilk plans to invest not only in the US but also in some European markets.

Finance Ministry plans tax cuts for micro-finance institutions

Micro-finance institutions are likely to be exempted from corporate income tax for two years, according to a circular drafted by the Ministry of Finance (MoF).

Micro-finance institutions mainly provide banking services to individuals and households with low income as well as super small businesses.

Under the draft, micro-finance institutions licensed by the State Bank of Vietnam prior to January 1, 2014 under the Law of the Credit Institutions, would qualify for the tax break.

After the two years of tax exemption, the institutions would also enjoy a 50 percent income tax reduction over the next four years on revenues derived from micro-finance activities.

The length of the tax exemption or reduction would be calculated from the first year the micro-finance institutions had earned taxable income.

Tax breaks for other micro-finance institutions would be 20 percent, but the rate would drop to 17 percent from January 1, 2016.

Singapore group eyes more joint IPs in Vietnam

Singapore’s Sembcorp Development Group plans to develop more industrial parks in Vietnam in the future, announced the group’s CEO Kelvin Teo.

Talking to The Business Times, a leading daily newspaper in Singapore, Kelvin Teo highlighted Vietnam’s huge potential for development, despite the numerous difficulties the country has faced in the past two years.

He said his group considers Vietnam as a long-term investment destination with half of the 90 million people under 30 years old.

Sembcorp is interested in the Vietnamese market regardless of the challenges faced by inflation, forex and bad debts, Teo said, adding that his group plans to double its shares from the current 33.3% a thermal electric power plant in the southern province of Ba Ria-Vung Tau.

The group began construction on the Vietnam-Singapore Integrated Township and Industrial Park (VSIP) in the central province of Quang Ngai on September 13 in the presence of Prime Minister Nguyen Tan Dung of Vietnam and Prime Minister Lee Hsien Loong of Singapore.

PM Nguyen Tan Dung (second, right) and Singaporean counterpart Lee HsienLoong (second, left) attend the VSIP’s ground-breaking ceremony in Quang Ngai on September 13.

Teo said his group will expand operations in Vietnam to various sectors, such as food processing, consumer goods production, electronics, and oil and gas.

The daily Today quoted PM Lee as saying that VSIPs in Vietnam have so far attracted more than US$6 billion in investment from 500 companies and created over 140,000 jobs.

Vietnam chosen as honourable guest at Accenta 2014

The organising board of the 68th trade fair announced on September 14 that Can Tho City will be an honourable guest at the 69th Accenta Trade Fair in Belgium in 2014.

The fair which has been held annually over the past 68 years is considered the biggest trade event in Europe, under the auspices of the Belgium Royal Government. This year’s event attracted more than 300 companies from all over the world.

Governor of East Flanders Jaw Briers said East Flanders has established long-lasting links with Can Tho City. Its participation in the 69th Accenta Trade Fair will help further boost economical and cultural cooperation between the two localities.

Minister Counsellor to Belgium Vu Ba Phu said the organising board will set aside 1,000sq.m of display for Vietnamese businesses, providing an excellent opportunity for Mekong Delta provinces and Can Tho in particular, to promote their products to the international market.

Around 100,000 guests are attending this year’s Accenta fair which runs from September 14 to 22, and Nepal is the honourable guest of the event.

Vietnam Business Forum in Europe

More than 200 Vietnamese delegates from 12 European countries have examined ways to strengthen links and expand operations in this large, lucrative market.

The Vietnam Business Forum in Kharkov, Ukraine, on September 14.

The September 14 forum, held in Kharkov, Ukraine, focused on building and developing retail networks, bars, restaurants and services to help establish effective trading methods for the overseas Vietnamese community in Europe.

Vietnamese Ambassador to Ukraine Ho Dac Minh Nguyet said the forum demonstrates the Party and State’s concern for Vietnamese businesses abroad and encourages them to operate in line with the legal system in their countries of residence.

Ambassador to Belgium Pham Sanh Chau said success of overseas Vietnamese businesses helps raise Vietnam’s profile and improve its global business relations and international trade negotiations.

He briefed delegates on new opportunities and challenges which will present when the Ukraine becomes a member of the European Union.

Participants shared experiences in penetrating European countries.

Pham Ngoc Chu, head of the overseas Vietnamese businesses association in Hungary, said retail trading is more and more difficult in Eastern Europe, and in order to compete with multinational groups, Vietnamese businesses need to build trademarks.

Pham Minh Nam, head of the Vietnamese businesses delegation in the UK discussed regulations and the differences in retail trading in the UK. He noted businesses find it difficult to gain similar success in other Eastern European countries.

Participants watched a video clip introducing successful businesses in Kharkov and Ukraine and their contributions to their homeland.

The eighth forum will be held in Italy next year.

 New plant varieties offer untapped potential

Although the number of certified new plant varieties every year has increased, many have not been put into large-scale production, according to experts.

The Vietnam Academy of Agricultural Science (VAAS) has reported that 161 new plant varieties, mostly rice strains, were certified by the Ministry of Agriculture and Rural Development (MARD) in 2011 and 2012.

During this period, the Cuu Long Delta Rice Research Institute also provided 27 rice varieties certified by MARD.

The institute has had 132 rice varieties certified and put into production so far, according to the institute head, Le Van Banh.

Nguyen Van Bo, VAAS director, said most plant varieties that are cultivated on a total area of more than 50,000ha were certified five to 10 years ago.

Most vegetables, cashew, pepper and soybean varieties that are now being cultivated were certified more than 10 years ago, he said.

Because there is no key plant variety for individual regions, agricultural production has not been equal in quality and has had low competitiveness and brought low prices, he added.

MARD Deputy Minister Le Quoc Doanh said the quality of plant varieties must be improved to increase prices.

Institutes and government agencies should create rice varieties with high yield as well, he said.

Mai Xuan Trieu, Head of the Corn Research Institute, however, noted that the quality of our new "corn varieties is not lower than corn varieties of the US and some countries."

The unstable output of the corn varieties occurred because of improper implementation of tending, irrigating, and fertilising.

To increase the country's corn output by one tonne per hectare under the Government's requirements, cultivation processes must be improved.

MARD plans to develop groups of plant varieties and advanced farming technologies for each region, and those that will adapt to climate change and be environmentally sustainable.

The country exported US$27.5 billion of agricultural produce last year. Of that figure, plant produce accounted for 60 percent, according to MARD.

Vietnamese rice faces disadvantages

Experts warn Vietnamese rice—one of its major export staples– risks losing its competitive advantages on global markets unless a long-term quality improvement strategy is developed as soon as possible.

At a recent conference in HCM City, experts expressed alarm at ominous statistics from the Vietnam Food Association (VFA). In the first eight months of 2013 Vietnam exported 4.67 million tonnes of rice, earning US$2 billion, representing a 10.9% fall in value and a 7.86% drop in volume compared to a year earlier.

VFA Vice President Pham Van Bay said domestic rice exporters are struggling to overcome excess supplies and global dwindling demand.

Thailand recently lowered rice prices in an attempt to clear its stocks, impacting the Asian rice market and posing a big challenge for Vietnamese exporters.

Vietnamese rice volume for export is forecast to fall in the coming years (Photo:vneconomy)

Bay said there will be a fierce competition among rice suppliers later this year after India decided to join the global rice market, and the Philippines and Indonesia – the two big importers – postponed transactions due to decreasing rice prices.

VFA forecast Vietnam’s 2013 rice export output will total 7.1–7.2 million tonnes— 500,000 tonnes less than in 2012. The sharpest fall is still to come as Asian abundance looks set to flood fourth quarter markets.

Deputy Minister of Trade and Industry Tran Tuan Anh believes inconsistent quality, insufficient branding, and volatile prices are all exacerbating the Vietnamese rice industry’s struggles.

In his opinion, many rice businesses lack the long-term export investment strategies required to expand their customer base and connect with processors.

Experts are also worried Vietnamese rice export volumes will decline from 2014 as farmers are encouraged to shift to other crops of higher economic value.

The Ministry of Agriculture and Rural Development (MARD) is planning to restructure rice cultivation in several provinces, increasing crop diversity and benefiting farmers.

MARD Cultivation Department Deputy Head Pham Dong Quang said corn will be a key rice alternative thanks to high market demand and productivity.

The plan is expected to be approved by the end of this year. A steep fall in Vietnamese rice exports will benefit India and Thailand—its two major trade rivals.

VFA has recommended the Ministry of Industry and Trade broaden government-level trade promotion to support the negotiation and signing of larger contracts.

It also urged the MARD to draft regulations governing rice stockpiling, thereby assisting farmers and stabilising market prices.

Deputy Minister Anh said the industry’s future rests on restructuring production, developing reputable brands, boosting trade promotion, and exploring emerging markets.

Other experts underlined the need to develop larger scale rice cultivation areas; strengthen links between farmers, scientists, authorities, and traders; and apply the advanced technologies capable of improving quality and efficiency.

EU supports Vietnamese localities’ development

An EU-funded project helping Vietnamese localities develop their economies was launched in Hanoi on September 13.

The European Union (EU) has contributed 275,000 Euro to the two-year project, with another 150,000 Euro given by Germany’s Konrad Adenauer Stiftung (KAS) Institute.

The Association of Cities of Vietnam (ACVN), in cooperation with KAS, will implement the project in a number of provinces and cities nationwide, including Hai Duong City in the north, Hue City in the central, and Tay Ninh town in the south.

It is designed to assist urban authorities expand their administrative capacity and encourage poverty reduction by helping small businesses.

Ambassador Dr. Franz Jessen, Head of the EU Delegation to Vietnam, expressed pleasure at the EU’s support for improving urban residents’ living conditions in the three target localities.

“We hope the project will achieve its targets, deliver benefits to Vietnamese businesses, and offer the Vietnamese Government useful counsel,” he said.

SOEs asked to report profits

Deputy Prime Minister Vu Van Ninh asked ministries and ministerial-level agencies to direct State-owned groups and corporations to report their profits and dividends.

State-owned groups and corporations are also required to report how much they receive from selling State capital shares during the equitisation process.

By the end of July, the country restructured 5,914 SOEs, equitised 3,990 businesses and converted 1,924 businesses into one-member limited companies.

Several big State-owned groups and corporations including Vietnam Airlines, Vietnamotor and Vinatex will soon hold initial public offerings (IPOs).

Firms may buy more US cotton

US cotton exporters met with their Vietnamese customers in HCM City on Wednesday to discuss stepping up cooperation.

Garments and textiles are a key export item, so the demand for cotton in Viet Nam is quickly increasing. The country imported 420,000 tonnes of cotton last year, putting it in the top ten cotton users and top five cotton importers in the world. Between 40 and 50 per cent of Viet Nam's cotton imports come from the US.

The Viet Nam Cotton and Spinning Association Secretary General Nguyen Hong Giang said mutual understanding between the US's cotton sector and Viet Nam's spinning industry plays an important role in boosting trade and reducing risks caused by changes in prices and markets.

The US Staple Cotton Cooperative Association has launched a programme to support Vietnamese customers, according to Hank Reichle, a representative from the organisation that met on Wednesday with the Viet Nam Cotton and Spinning Association and the Viet Nam Textile and Apparel Association.

PVF to delist next week after merger

Shares of PetroVietnam Finance (PVF) will be delisted from the HCM City Stock Exchange on September 24 as part of its merger with Western Bank.

A meeting late last week officially announced the establishment of a new bank after the merger - PVcomBank.

However, worries over the future of the bank after consolidation have impacted the stock. PVF saw heavy sell-off this week, hitting the floor price for three consecutive sessions.

An official of PVF, under conditions of anonymity, told the stock market information website cafef.vn that PVcomBank would meet the trading requirements of shareholders as expected and ensure maximum shareholder benefits.

"As each party in the merger has particular strengths, PVcomBank as a large-scale credit institution [with approximately VND100 trillion (US$4.7 billion) in total assets and VND9 trillion ($424.5 million) in charter capital] will operate effectively," he said.

He also revealed that his bank would manage to list shares again. "The share value of the bank will quickly restore sustainable growth," he said.

"PVcomBank has full conditions for listing," he affirmed. "The managing board will decide when to go public on the basis of balancing the long-term development of the bank and benefits of shareholders."

As the delisting is just a legal procedure, all the rights and interests of investors are secured by law. The payment of dividends and information disclosure will operate normally.

After delisting, PVF shares will be traded on the over the counter (OTC) market. The HCM City Stock Exchange will have to choose another blue chip to fill in the list of the 30 largest shares tracked by the VN30.

But it also means that PVF will be rejected from two exchange-traded funds. According to data on September 6, PVF shares accounted for 1.24 per cent of the total portfolio value of FTSE Vietnam.

Additionally, in Market Vectors Vietnam ETF, updated as of September 12, shares of PVF held by the fund reached almost 14 million worth $3.35 million. — VNS

In addition, securities firms will cut margin trading on PVF, creating large sell-offs. The losing streak of PVF shares will probably continue until the delisting.

PVF closed yesterday's session at just VND4,900 ($0.2).

Viet Nam hosts advertising summit

Viet Nam will host for the first time the 28th Asian Advertising Congress (AdAsia 2013) at the National Convention Centre in Ha Noi on November 11-14.

With its focus on "Re-engineer Advertising," AdAsia 2013 will be a great opportunity to promote Viet Nam's image and expand co-operation in trade, investment and tourism with Asian countries and the world, Dinh Quang Ngu, president of the Viet Nam Advertising Association (VAA), said at a recent media briefing in HCM City.

In 2009, two years after it joined the Asian Federation of Advertising Association (AFAA) as a member, Viet Nam Advertising Association won the bid to host AdAsia 2013 in Viet Nam, Ngu said.

More than 1,000 delegates from AFAA member countries and territories, world leading media and advertising corporations and representatives of trade promotion chambers from Asia and the world are expected to participate in the event, which is organised every two years in member countries.

AdAsia 2013, with a budget of US$2 million, will attract more than 20 world renowned speakers including famous author David Allen Aaker; Don Peppers, founding partner of Peppers & Rogers Group; Edward Pank, managing director of Warc Asia; Nigel Hollis, vice executive president and chief global analysis of Millward Brown; and Rose Tsou, Yahoo's senior vice president, Asia-Pacific.

VTV, VNPT team up for overseas package

Viet Nam Television (VTV) and VNPT Global Joint Stock Company last week reached a strategic cooperation agreement to enable Vietnamese viewers worldwide to watch domestic television channels.

This will be the first time a copyrighted Vietnamese TV channel package is distributed to Vietnamese communities around the world. The package includes channels on general news, movies, financial and economic information, entertainment, health and travel.

Viewers can find on these channels latest and diverse news about the country. The two sides have plans to add more channels in the coming years.

VTV and VNPT Global will resort to the Over the Top (OTT) broadcasting solution, which has become popular among users across the world. Using this solution, TV viewers can watch their favorite programmes using various devices such as set-top-box, Internet TV, laptops, smartphones and tablets.

Mobile phone purchases continue to rise

The latest quarterly report on the Vietnamese market from the International Data Corporation (IDC) showed that 5.8 million mobile phones were delivered in the country in the second quarter of 2013.

Smart phone accounted for 32.7 per cent, two times higher than that in the same period last year.

The IDC statistics showed the rapid development of the Windows Phone operating system, which stood at the second place with 15.3 per cent in Q2/2013. This operating system increased 119 per cent, from 5.7 per cent in Q2/2012.

The Android operating system tops the Vietnamese market with 82.2 per cent, while Apple's iOS took the third spot with only 1.6 per cent. .

VN e-commerce firm wins regional award

Ngan Luong, a member company of pioneering Vietnamese e-commerce group, Peace Soft Solutions Corporation, seized the Red Herring 100 Asia award with its mobile payment solution MobiPay in Hong Kong last week.

MobiPay is the first service in Southeast Asia to allow traditional retail stores or individuals to use mobile phones for payment with only one-minute registration and without utilizing point of sale (PoS) machines. It was completely designed and developed in Viet Nam by Vietnamese experts.

The platform supports two payment methods. It allows customers to transfer money to sellers from bank cards linked with their mobile phone numbers; and also allows customers to swipe bank cards into a card reader attached to sellers' mobile phones.

Sticking to copyright rules can help exports

Compliance with copyright rules can help create competitive edges in export deals, according to the Viet Nam Competition Authority.

It said that adherence to software ownership rules would, in the long run, be beneficial to businesses involved in global competition, market expansion, brand building and sustainable exports, particularly since Viet Nam was now a member of the World Trade Organisation.

A recent study indicates that a 1 per cent increase in the use of licensed software in Viet Nam can generate about US$87 million in gross national product, compared to $37 million created from the use of illegal software.

Tarun Sawney, senior director, Antipiracy, Asia-Pacific, Software Alliance (BSA) said that using legal software provided low regulatory risks and protection from penalties found during audits and reviews.

He said a new software product called Verafirm had been created by his organisation. He said it helped companies improve the control of their business while complying with Vietnamese and international laws and regulations.

"Verafirm not only makes it easier for companies to keep tabs of their software assets, but helps them achieve better competitiveness by putting information technology to better use," he said.

"Transparency and quality control in exports using digital technology have now become the norm for developed countries. Verafirm is a non-profit endeavour supported by major software publishers.

Spain-Vietnam trade on the rise

Two-way trade between Vietnam and Spain rose 14% in the first half of this year to more than EUR1 billion, according to Spain Customs statistics.

Of the total, Vietnamese exports fetched EUR930 million, up 13%, and its imports increased nearly 18% to EUR122 million.  

Vietnam mainly exports machinery, electric and electronic appliances, coffee, footwear, mechanical equipment, garments, seafood, handbags, wallets, and suitcases from Spain.

Its key imports include chemicals, machinery, electrical equipment, aircraft, plastics, tanned hide, pharmaceuticals, and animal feed.

Bilateral trade reached a record high of EUR2 billion in 2012, a year-on-year increase of 19.4%.

Quang Ngai urged to attract more investment

Prime Minister Nguyen Tan Dung has asked the central province of Quang Ngai to attract more foreign investment to develop its industrial parks and spur local economy.

During the September 13 working session with key provincial leaders, Dung said that besides boosting industry, Quang Ngai should also advance the agricultural sector through increasing application of technology in production to enhance the productivity, quality and competitiveness of products.

Noting that the ratio of poor households in Quang Ngai remains high at 17%, the PM urged the locality to pay more attention to poverty reduction measures, while focusing more on vocational training and human resources development to meet the labour requirements of local industrial parks.

In addition, he asked the province to continue implementing the programme of building new-style rural areas, thus increasing local people’s income, while improving its investment environment, intensifying administrative reforms and ensuring social welfare.

Dung also gave his opinions on the proposal to develop Ly Son island district and the construction of Tri Binh-Dung Quat road, a key transport project.

Praising the efforts that the province has made over past years, the PM said its comprehensive achievements seen in all fields have made positive contributions to the socio-economic development of the whole country.

It was reported at the working session that Quang Ngai's GDP in the January-June 2013 period rose 13.6% year on year, industrial production 27%, and earnings 40.43%.

In the last months of this year, the province will continue easing business difficulties, improving its provincial competitiveness index (PCI), and creating a favourable environment for investors.

Vietnam praises IFC’s support

Vietnam treasures close cooperation and valuable support from the International Finance Corporation (IFC), affirmed Deputy Prime Minister Hoang Trung Hai.

Deputy PM Hai made the remarks at the reception for Jin Yong Cai, Executive Vice President and CEO of the IFC, a member of the World Bank Group, in Hanoi on September 13.

He said that the IFC’s increased investment has been enjoying practical and effective results.

Vietnam is in the process of restructuring its economy and has high demand for resources to serve its national development towards industrialisation and modernisation. Therefore, he said, the wants to continue receiving IFC’s financial and technical assistance to help it obtain more resources and experience in increasing social investment, equitising State-owned enterprises (SOEs) and restructuring the banking system, he added.

Jin Yong Cai affirmed that IFC is always willing to support Vietnam in important spheres during the country’s economic restructuring.

He also expressed his interest in the establishment of the Public-Private Partnership model in building infrastructure, and pledged to assist Vietnam in restructuring State-owned enterprises and the banking system as well as dealing with bad debts.

He stressed that IFC can not only act as an investor, but also call on other investors and companies to invest in Vietnam.

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