HN businesses prep for Tet demand     

Ha Noi Department of Industry and Trade has directed its enterprises to increase supply by 10 per cent over the year to satisfy the demand created by the 2017 Tet (Lunar New Year) holiday at the end of January, the year’s biggest shopping season.

The holiday’s economic impact was estimated at VND23.5 trillion (US$1.1 billion), municipal authorities said at a meeting on Tuesday.

Tran Thi Phuong Lan, deputy director of the city’s Department of Industry and Trade, said demand for goods would increase during Tet, with an increase particularly in essentials like agricultural products, dried food, confections, dry nuts, wine, soft drinks, beer and other beverages.

Commercial centres, supermarkets and convenience stores are expected to reserve essential goods worth a total of VND4.5 trillion.

Confectionary producers and beverage companies will produce and supply goods worth over VND9 trillion.

Household businesses in local agricultural and confectionery trades will prepare and stock goods worth nearly VND2.1 trillion.

Concerning the price stabilisation programme, Le Hong Thang, director of Ha Noi Department of Industry and Trade said prices of essential goods would be inevitably volatile in the holiday but the municipal authority would prepare plans to keep prices stable.

Representative from Ha Noi Trade Corporation (Hapro), a major supermarket with many outlets in Ha Noi, said Tet offered a business opportunity for the company, and it had prepared an abundant supply of goods and would organise over 60 sales points to serve the shopping needs of local people.

At the meeting, enterprises suggested local authorities allow vehicles transporting food items and fuel to move inner city 24/7 to facilitate efficiency.

The local trade department said it would closely supervise the supply and demand of goods and services and co-ordinate with other departments and agencies to tackle problems and difficulties for enterprises.

It said it would be willing to co-ordinate cargo traffic between producers and distributors to ensure well-timed traffic and supply. It had also directed enterprises and producers to actively prepare production and supply plans to ensure stable prices. 

Central Group Vietnam & Big C announce new strategy

Central Group Vietnam and Big C will invest $30 million in upgrading and expanding 13 of the 34 Big C trade centers nationwide to as big as 470,000 sq m.

The new strategy of Central Group and Big C is to continue to invest in new trade centers and upgrade existing ones into commercial complexes aimed at the high-end retail segment.

New trade centers will include modern facilities that meet shopping and entertainment demand and create new trends. Mr. Philippe Broianigo, CEO of Central Group Vietnam and Big C, said this will contribute to the country’s wealth and improve quality of life. “The development of Central Group in Vietnam is based on a relationship between partners and suppliers," he said.

The group hopes to build a sustainable foundation in Vietnam and this will be impossible if we don’t consider win-win cooperation, Mr. Philippe Broianigo added. Central Group Vietnam and Big C are responsible for gathering partners into a union that develops the advantages of each and facilitates the sharing of benefits.

The meeting of partners will become an annual event where Central Group Vietnam and Big C can thank them, hear their opinions, and announce new business strategies. More than 300 partners will attend.

Established in July 2011, Central Group Vietnam is a member of the Central Group, the leading retail and real estate group in Asia. It specializes in electronics, sports, fashion, trade centers, hotels, and e-commerce. The group has more than 15,000 employees in Vietnam and has built broad networks with Vietnamese partners, signing strategic cooperation deals with the Nguyen Kim Trading JSC in 2015, Bac Lan Chi’s supermarket chain in the north in 2015, Big C supermarket chain in 2016, and online retailer Zalora in 2016.

The group now owns multi-retail brands in the country, such as Nguyen Kim, Big C, Zarola, Robins shopping centers, SuperSports high-end sports shops, Marks and Spencers fashion shops, Japan’s Komonoya one-price shops, Lan Chi Mart chains, and Centara hotels and resorts.

In Vietnam since 1998, Big C supermarkets are found in localities nationwide. As supermarkets integrated with trade centers, Big C serves more than 50 million customers each year.

Former CEO of PVTex suspended

A former executive at a near-bankrupt fiber plant was suspended by the Ministry of Industry and Trade (MoIT) on November 15 after being absent from duties for nearly one month.  

Vu Dinh Duy, 41, the former CEO of Petrochemical and Textile Fiber (PVTex), a textile unit of the State-owned oil group PetroVietnam, was found to have been overseas since October 22.

Duy has been serving as a Board Member at the Vietnam National Chemical Corporation (Vinachem). He was found to have been absent from this position since October 24, according to a report from Vinachem and a working group of MoIT.

Three documents sent to Vinachem under his name were found. One not dated was received on October 25 seeking sick leave from October 26-28, while one dated October 31 asked for 30 day’s leave starting from November 1 so he could go overseas for medical treatment.

The third was sent by Duy to Vinachem on November 2 seeking annual leave or leave without pay. His whereabouts are currently unknown. The Immigration Management Department under the Ministry of Public Security revealed that Duy left Vietnam on October 22 and has not returned.

“Vu Dinh Duy has seriously violated regulations on the management of foreign travel,” MoIT said via a statement. The Government Inspectorate wrote in a report on October 20 that it had found several violations relating to the construction and operation of a PVTex plant and proposed police investigate the case.

On October 16, Duy did not appear at the Vinachem office. He had sought leave for medical treatment overseas but the request was not approved by the company. After failing to contact him for a number of days, Vinachem’s management reported his absence to their supervisors at MoIT.

Duy served as the CEO of PVTex from 2009 to 2014. Dinh Vu, the fiber plant, was meant to supply about 30-40 per cent of Vietnam’s annual polyester synthetic fiber demand and help reduce the country’s reliance on imported raw materials.

Its operations, however, were unsteady. The plant began running in May 2014 but suspended production three times, with the latest being in September last year. PVTex planned to resume production in the first quarter of this year but remains closed. PVTex incurred losses of VND1.255 trillion ($55.5 million) in 2015, up from VND1.085 trillion ($48.5 million) in the previous year, according to a PetroVietnam report.

In their report last month, government inspectors said PVTex, as the investor of the project, and its contractors did not comply with regulations on purchasing equipment. For example, some equipment, which was supposed to be made in Germany, was replaced by equipment made in China. The poor quality equipment led to prolonged trial runs at the plant.

Following his poor performance at PVTex, Duy was somehow appointed Deputy Director of the Hai Phong Department of Industry and Trade in 2014. He was later transferred to an Industrial and Environmental Safety Agency under MoIT. Duy was then appointed as a Board Member at Vinachem in April this year, just one day before former Minister of Industry and Trade Vu Huy Hoang left office.

Mr. Hoang himself is facing punishment for unduly promoting his son and the infamous Trinh Xuan Thanh, who also fled the country amid an investigation. Thanh is accused of mismanagement and causing losses of around VND3.2 trillion ($147 million) at PetroVietnam Construction while in charge between 2011 and 2013.

HDBank supports Ariyana buyers

HDBank has signed an agreement with the Ariyana JSC to support purchasers of condominiums at Ariyana Beach Resort & Suites Danang.

It will lend 80 per cent of the total cost of a condominium during the construction phase at 0 per cent interest.

Total credit to be provided by HDBank is estimated at VND1.7 trillion (nearly $80 million). Purchasers who sign a contract to buy a condominium from now to December 12 will be offered discounts of 4 to 6 per cent.

The credit will facilitate purchasers in planning their finances to invest in one of the leading real estate projects in the central coastal city of Da Nang.

“In addition to preferential loans of up to 30 years, purchasers only need to pay 20 per cent of the apartment price from their own funds, and we will support interest rates during the construction period,” said Mr. Nguyen Canh Son, General Director of the Ariyana JSC. 

Returns of up to 10 per cent over ten years has also been committed by the project’s owners.

Ariyana Beach Resort & Suites Danang is the only project with a premier location on the beach and is just ten minutes from the center of Da Nang and 15 minutes from Da Nang International Airport.

It is also located within the Ariyana Urban and International Tourism Complex, which covers 27 ha. The north of the condotel project is near Furama Villas and the Ariyana Danang Convention and Exhibition Center. The south of the project is adjacent to the five-star Fusion Maia Resort, while a military airport lies to the west.

The project’s location on Vo Nguyen Giap Street also makes for easy access to UNESCO World Heritage Sites such as Hoi An ancient town, the My Son Sanctuary, the former imperial capital of Hue, and Phong Nha - Ke Bang National Park. The street is also known as a “five-star” boulevard as it has become home to a number of luxurious resorts.

The condotel project has three main towers: North, South and Elite. All have an ingenious layout and are connected to each other by a landscaped promenade with swimming pools. The project’s water landscapes cover more than 1,700 sq m in total and it has an indoor swimming pool combined with a luxurious spa and health services area.

Ariyana also has a number of restaurants, bars and lounges to choose from, serving Asian specialties and Western favorites. The first and second floors of the three towers are service areas that include all the luxurious facilities and services one requires for a dreamy vacation.

The owner is also developing the Ariyana Danang Exhibition & Convention Centre (ADECC) in preparation for the APEC 2017 meetings to be held in Da Nang.

With total investment of VND350 billion ($15.7 million), ADECC consists of three floors, with one basement and two upper floors covering a total of 16,644 sq m. Construction of the main ballroom, with a capacity of 1,400 people, in on track.

Southern Vietnam relies on electricity from northern and central regions

Vietnam Electricity Group (EVN) said it has continued transmitting electricity from the nation’s northern and central regions to the south on the 500-kV northern-central and central-southern lines this month, thus preventing southern consumers from choppy energy supply.

Power demand in the south is running high while a couple of thermal power projects are falling behind schedule, so the south might fall short of electricity in 2018-2019.

According to a source from EVN, the State utility will boost investment in renewable energy projects, especially solar power, and construction on ongoing power plants to create more sources of power for the south in the period.

In the long run, EVN will compel thermal power plants in the Mekong Delta to switch from coal to liquefied petroleum gas (LPG), such as Tan Phuoc in Tien Giang Province.

In January-October this year, EVN spent VND107 trillion (US$4.78 billion) constructing power generation projects, and started work on 17 power grid projects and put into use 17 others, including one 500-kV, three 220-kV and 13 110-kV power lines.

Among the major power transmission projects are the 500-kV Quang Ninh-Hiep Hoa line stretching from Quang Ninh to Bac Giang provinces in the north, the 220-kV Ngu Hanh Son transformer station in the central city of Danang, and the 110-kV Van Trung transformer station in Bac Giang Province.

In the middle of this year, electric power transmitted from the northern and central regions to the south through the 500-kV northern-central and central-southern lines reached 2,360 MW and 2,000 MW respectively.

Hanoi tells firms to pay tax debt

The Hanoi Tax Department has requested 67 enterprises to pay tax arrears totaling VND1.38 trillion (US$61.8 million) as soon as possible or the department will take tough measures.

The sum makes up one-third of the total taxes which the corporate sector has not paid this year. Topping the list is North Star Development Investment Joint Stock Company based in Cau Giay District with tax debt amounting to VND280.7 billion.

Unpaid taxes of 40 businesses on the list total more than VND10 billion each.

On November 9, the department released a list of 156 firms which have not paid VND150.3 billion in taxes, fees and land use fees, including 143 firms owing VND121.94 billion and 13 others VND28.36 billion in land use fees.

The department has made public 12 lists of 1,636 firms which owe a combined VND3.93 trillion in taxes, fees and land use fees. As of October, 697 firms had settled tax debt of VND385 billion.

Publicizing the names of corporate tax debtors is a major measure to reduce tax debts as regulated by the General Department of Taxation.

The Tax Department in HCMC has announced two lists of corporate tax debtors.

Shrimp quality still big issue

Low-quality young shrimp and input material make it difficult to manage the quality of shrimp for export and thereby affect the competitiveness of Vietnamese shrimp exporters on global markets, experts told a conference in Can Tho City on November 15.

Pham Anh Tuan, former deputy head of the Vietnam Directorate of Fisheries at the Ministry of Agriculture and Rural Development, said domestic farms turn out around 100 billion young shrimps a year but their quality is not as good as expected.

A small number of suppliers of young shrimp meet biological safety standards, he told the conference on how to raise the competitiveness of the country’s shrimp cultivation sector.

Nhu Van Can, head of the Aquaculture Department at the Vietnam Directorate of Fisheries, said there are so many types of feed, veterinary drugs and antibiotics for shrimp breeding that authorities cannot control input material for shrimp farming.

There are currently 2,800 types of mixed feed, 3,800 types of additional feed and 2,800 substances for handling environmental pollution, Can said.

Using low-quality young shrimp leads to antibiotics being overused, which explains why thousands of categories of antibiotics can be found on the market, he added.

Le Van Quang, chairman and general director of Minh Phu Seafood Corp., said major retailers in the world, such as Walmart of the U.S., does not accept shrimp contaminated with antibiotic residues.

Huynh Quoc Tinh, manager of the Sustainable Aquaculture Program at WWF Vietnam, said there should be a transparent mechanism for testing antibiotic residues in shrimp for export.

Problems arise in Habeco stake sale talks

The Ministry of Industry and Trade said a number of problems had arisen in negotiations  as Carlsberg wants a bigger stake in Hanoi Alcohol Beer and Beverage Company (Habeco).

At present, Carlsberg owns 17.5% of Habeco. According to an agreement between the two sides, Carlsberg has a priority to negotiate with Habeco to buy shares from the latter before other Habeco shareholders can do the same.

Carlsberg and Habeco have been in talks over share pricing and related issues since Habeco made its debut on the market for unlisted public companies (UPCoM) on October 28.

Tayfun Uner, CEO of Carlsberg Vietnam, said if the stake acquisition deal is complete, Carlsberg’s beer market share in Vietnam would rise to 30%. This will allow the Danish firm to compete with Saigon Beer-Alcohol-Beverage Corporation (Sabeco) which currently holds a 40% market share.

At a meeting with a working team of the Prime Minister on Monday, Phan Chi Dung, head of the light industry department under the ministry,  said negotiations between Carlsberg and Habeco are tough. Dung said the trade ministry wrote to the Ministry of Justice seeking advice to help Habeco and Carlsberg reach an agreement on the stake acquisition.

The Ministry of Industry and Trade is the representative of an 81.79% State stake in Habeco which has a face value of a combined VND9 trillion.

Following Habeco’s listing on UPCoM, its stock price has soared more than 10 times and briefly reached VND109,500 a share.

Experts: Renovation needed for successful start-ups

If Vietnam promotes renovation and flexibility, the country will be able to realise its start-up goals, an economic expert has said.

Le Hai Binh, Vice Chairman of the Vietnam E-Commerce Association, delivered the remark at a start-up forum in Ho Chi Minh City on November 16, which was held as part of activities in response to the ongoing “Global Entrepreneurship Week”.

Experts, representatives from businesses, and start-up entrepreneurs discussed the start-up ecosystem, service provision for start-up activities, start-up trends in Vietnam and the world. They also shared successful business models.

According to Vice Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Vo Tan Thanh, the Party and State treasure the role played by entrepreneurs and consider the private sector as a vital for the country’s development.

Vietnam is home to about 600,000 enterprises and over 4 million household-scale business establishments.

The country is set to have 1 million enterprises by 2020, with the private economic sector expected to contribute 45 percent of the GDP.

VCCI - the 13 th partner of the Global Entrepreneurship Network - is working hard to help Vietnamese start-ups, Thanh said.

Jessica Hilston, a US start-up expert, stressed the importance of selecting partners for start-ups, saying that this is essential for their success.

Enterprises need to cherish start-up initiatives and outline strategic orientations, she said.

Can Tho moves to turn tourism into spearhead sector

The Mekong Delta city of Can Tho is striving to make tourism a spearhead sector for the local economy by 2020. 

A resolution, issued by the municipal Party Committee in late August, set out goals and tasks for the local tourism sector to follow in the 2016-2020 period. 

The city aims to welcome 32 million tourists, including 3.5 million foreigners, in the five years. The flow of tourist arrivals is set to grow 10 percent annually. 

The tourism sector is expected to generate 12.1 trillion VND (around 544.5 million USD) in total revenue with annual growth of 16 percent. 

It is hoped to create 39,300 jobs, including 13,100 direct and 26,200 indirect employments, with 80 percent of the workforce having occupational training. 

To meet these goals, Can Tho will focus on raising public awareness of the importance of tourism, improving services toward safety and hospitality, and investing in infrastructure. 

Human resource development are also a key factor, with the Can Tho Vocational Tourism College set to be the main source of tour operators for the city. 

The municipal Department of Culture, Sports and Tourism has announced major programmes to diversify tourism products, conserving Long Tuyen ancient village and attracting investment in Con Son, Phong Dien and Tan Loc eco-tourism sites, among others.

Vietjet inaugurates new route from Hai Phong to Bangkok

Vietjet has made its debut flight for the Hai Phong – Bangkok route and welcomed the flight’s first passengers arriving at the airport at Cat Bi International Airport in the northern port city of Hai Phong. 

The new route to Bangkok is poised to meet the increasing travel demand from individuals and tourists, thus help boost the regional trade and integration. 

The Hai Phong – Bangkok route is operated on every Monday, Wednesday, Friday and Sunday with flight time of one hour 50 minutes per leg. The Bangkok – Hai Phong flight takes off at 15:20 and arrives at Hai Phong at 17:10. The return flight departs at 17:40 and lands in Bangkok at 19:30. 

Conveniently located in the northeast Vietnam as the centre for economic and social growth for the region, Hai Phong has great potential for tourism development with a series of local specialties and services for international tourists’ experience. 

Vietjet has so far operated 10,000 flights, carrying nearly 2 million passengers on the eight routes to and from Hai Phong. Meanwhile, Thailand is known as the “smile land”, the shopping paradise and favorite traditional and cultural tourism services. The new route will well connect the two key cities of Hai Phong and Bangkok, bringing more travel opportunities to individuals and tourists at the most affordable costs. 

With its high-quality services, special low-fare tickets and diverse ticket classes, Vietjet offers its passengers enjoyable flights with dynamic and friendly flight crew, comfy seats, amazing hot meals and special surprises from the airline’s inflight activities.

Vietjet Air now owns more than 40 A320 and A321 planes which make some 350 flights every day. Its flight network has covered almost all destinations in Vietnam and many others in Singapore, the Republic of Korea, China, Thailand, Myanmar and Malaysia.

It has provided services for more than 30 million passengers so far.-VNA

Central bank treasury bills coupon hits 3%

The coupon for State Bank of Việt Nam’s 14-day treasury bills hit a one-year record high of 3 per cent on November 11.

The October Vietnam Chartbook report, released by the Saigon Securities Company (SSI), also showed the overnight inter-bank rate rising to 1.083 per cent, the highest level for the past 65 days, on the same day.

According to the report, after hitting VNĐ86.7 trillion (US$3.853 billion) on October 28, 2016, the outstanding amount of SBV’s treasury bills gradually declined to VNĐ55.7 trillion on November 11. This indicated that the central bank deposited VNĐ31 trillion into the financial system in 11 days.

SSI said that the rise in the rates showed that the liquidity in the banking system is not as abundant as previously.

However, SSI said, demands for cash often rise at the end of the year, adding that the same move was seen at the end of last year. Within 24 days, from early November 2015, the VNĐ42 trillion outstanding amount of the central bank’s treasury bills reduced to zero.

The VNĐ55.7 trillion outstanding amount of SBV’s treasury bills this year therefore could diminish soon, SSI forecast. 

Animal feed imports see slight decline

Vietnam imported nearly US$2.8 billion worth of animal feed and materials for the ten months leading up to November, down 1.13% against the same period last year, according to the latest statistics from the General Department of Vietnam Customs.

In the reviewed period, import markets post high growth, including Japan (up 91.6% to US$3.8 million), the UAE (up 54.79% to US$66 million), China (up 47.45% to US$228 million) and Malaysia (up 41.32% to over US$28 million).

Major suppliers in October 2016 included Argentina, the US, China and India. Argentina ranked first with import value of more than US$145 million, bringing the total ten-month period import value to US$1.2 billion, accounting for 49.6% of Vietnam’s total import revenue.

The US came second at US$31 million in October and US$302 million in ten months and China was placed third at US$13 million and US$228 million, respectively.

Vietnam also imports animal feed and materials from other markets like Brazil, Austria, Indonesia, and Taiwan.

HCMC kicks off Vietnam Forum for Startup

Vietnam Chamber of Commerce and Industry (VCCI) and the Vietnam – Finland Innovation Partnership Program (IPP) co- organized the 2016 Vietnam Forum for Startup in Ho Chi Minh City on November 16. 

The forum attracts crowded domestic startup students, young people and enterprises, responding to the Global Startup Weekend (GSW) which has taken place in 160 countries and territories from November 14- 20 with the participation of 10 million people.

It is considered as a youth-friendly space to introduce new innovation ideas of young people.

Domestic food consumption increases, said Deputy Minister

As per statistics, there is an increase in food consumption annually in Vietnam, said Deputy Minister of Industry and Trade Ho Thi Kim Thoa at a conference in HCMC on food processing industry held in Ho Chi Minh City on November 16.

Annual domestic food consumption is estimated to account for 15 percent of the whole country’s gross domestic product (GDP) and is likely to increase to  18 percent meanwhile food production just soares by 8.5 percent.

Currently, foreign-invested companies in the food processing industry accounts for 1 percent. As per forecast, within next 20 years with the rate of economic growth at 5-6 percent, consumption demand, appearance of urbanized residential blocks and retail market will increase leading to higher demand of more quality processed food.

On other hand, there is a high potential of food export to foreign countries. Vietnam is one of the biggest exporter of rice, coffee, cashew in the world. It is scheduled that in 2017, Vietnam will reach US$31 billion from agriculture, forestry and fishery export.

Speaking about food processing industry in Vietnam, a representative from Vietnam’s Association of Foreign Invested Enterprises said that thanks to investment incentives, foreign investors eye Vietnam most. Fore instance, 49 percent of Korean businesses have planned to set up processed food companies in Vietnam.

Yet,  Claudio Dordi, EU-MUTRAP Project team leader, said that to improve agricultural produce quality for export Vietnam needs to invest in brand names. In reality, many countries consume Vietnamese agricultural produce but they did not realize.

Housing law still not meet demand

The Law on Housing taking effect from July 1, 2015 allowed foreigners to have the right to own houses in the same way as local Vietnamese citizens which was considered as a push for property market; yet, it is not like expectation.

According to statistics made by the Land Registration Office under the city Department of Natural Resources and Environment, for one year and a half, just 217 foreigners registered to buy houses, most of them bought condos in districts 2, 7, and Binh Thanh; lower than in 2014 with 279 people registered to buy.

Also according to the Land Registration Office, formality is the hiccup preventing foreigners from buying houses because there has no guideline for issuance of ownership certificates to foreigners, head of the Office Pham Ngoc Lien said.

Demands for ownership certification increased days by days and foreigners were angry to apply for registration yet the office can not solve. Mr. Lien explained that as per the guideline of Ministry of Defense, the Ministry of Public Security and people’s committees in provinces, the departments of construction are responsible for publicize the index of housing projects where foreigners are eligible to buy yet so far the city Department of Construction has not announced any information on the issue.

Le Hoang Chau, chairman of the city's Real Estate Association, said that recently the Ministry of Defense, the Ministry of Public Security liaised with the association upon the matter. The three sides agreed that foreigners can buy commercial condos which are not located in the national defense and security areas, except for Ly Son, Cu Lao Cham and Nam Du islands.

Sembcorp looking at software park in Da Nang

Da Nang is selecting a plot of land south of Thuan Phuoc Bridge for a possible software park project invested by Singapore’s Sembcorp Industries.

In a document signed by the Deputy Chairman of the Da Nang’s People Committee Nguyen Ngoc Tuan, the Departments of Construction, Natural Resources and Environment, and Planning and Investment together with the Da Nang Investment Promotion Center are to cooperate on a research report for the People’s Committee this month.

Confirming the plan with VET, Mr. Le Canh Duong, Director of the Da Nang Investment Promotion Center, said it is considering the most suitable land for the software park. “The investor is also researching and considering the feasibility of the project,” he added.

Ms. Mary Ann Chan, Senior Manager, Corporate Relations, at Sembcorp Industries, told VET that the Singaporean investor will only provide further details once the project is confirmed.

During his official visit to Singapore in August, State President Tran Dai Quang met Mr. Tang Kin Fei, Chairman and CEO of Sembcorp Industries, where he introduced Da Nang as a dynamic urban area with many socioeconomic achievements in recent years.

With an open investment environment, high quality human resources, and development oriented towards clean industry and high technology, the President proposed Sembcorp consider it as a potential investment location. Sembcorp Development, a wholly-owned subsidiary of Sembcorp Industries, last year invested in the Sembcorp Hai Phong Logistics Hub. 

Singapore is now one of the largest investors in Vietnam. The country ranked third out of 114 countries and territories investing in Vietnam in the first ten months of this year, with $1.73 billion in 255 valid projects.

The average size of each investment project is $22.7 million, higher than the average of $13.8 million. Many Singaporean projects are operating effectively and contributing greatly to employment, export growth, and economic growth in Vietnam.

The Vietnam-Singapore Industrial Park (VSIP) is a flagship project of Singapore in Vietnam. There are currently seven VSIP industrial parks in six cities and provinces: Binh Duong, Bac Ninh, Hai Phong, Quang Ngai, Hai Duong and Nghe An.

Singaporean investment can be found in most economic sectors in Vietnam, ranging from oil and gas exploration and exploitation and industrial manufacturing to agriculture, forestry and seafood processing. Most Singaporean investment capital has been channeled into infrastructure, services and real estate.

Rubber recovery boosts profits

Strong recovery of world rubber prices was expected to continue through the end of the year and increase revenues for local rubber firms, according to local securities companies.

The world rubber price closed at 208.5 yen per kilo on November 11, 4.98% higher than 198.6 yen in the previous session, reported tradingeconomics.com website. The price increased by 17.27% against the price in the previous week, 16.68% month-on-month and 33.48% year-on-year.

The world rubber price reached its highest level at 526.4 yen per kilo in February 2011, and then dropped to its lowest level at 146.4 yen in January 2016.

The Bao Viet Securities Company (BVSC)’s analytical division reported world rubber prices at the end of September 2016 rose by 32%, compared to earlier this year.

On the local market, rubber prices also displayed positive fluctuations against expectations, as the average price at the end of September increased by 15% to VND30 million per tonne against the price in the first half of this year.

Rubber prices were expected to increase in the future due to support from a surge in oil prices, it said.

In addition, El Nino and La Nina, which are a natural part of the global climate system, would cause negative impacts on rubber output for the short term, resulting in rubber prices rising, BVSC said. Meanwhile, demand for natural rubber in China was expected to increase in the coming months due to the production of cars and car tires.

Therefore, positive developments in rubber prices would help local rubber enterprises exceed their targets in production and business for this year, it said.

The BIDV Securities Company (BSC) also said global rubber prices saw positive fluctuations and local enterprises expected rubber prices to increase by 17% in the fourth quarter of 2016, in comparison with the same period last year.

BSC anticipates a recovery in rubber prices, while lower production costs would assure that rubber production remains profitable in 2016. Rubber companies are expected to overcome difficulties and remain stable in their output of rubber in the fourth quarter of 2016.

Two large natural rubber processors, Phuoc Hoa Rubber Company and Dong Phu Rubber Company, reported profits in September, as well as in the first nine months of this year, exceeding their yearly plans.

The net profit of Phuoc Hoa Rubber Company in the third quarter reached VND131 billion, being 31% higher than its yearly plan, while Dong PhuRubber Company’s net profit stood at VND85.5 billion in the first nine months of 2016, 50.7% higher than its yearly plan for 2016.

Meanwhile, Tay Ninh Rubber Company and Hoa Binh Rubber Company had net profits of VND29.8 billion and VND3 billion, respectively. The net profit tripled for Tay Ninh Rubber Company and rose by 77% for Hoa Binh Rubber Company, against their yearly plans.

However, in the third quarter, Thong Nhat Rubber Company saw a reduction of 78% year-on-year in their net profit, to VND1.7 billion, due to the company not having revenues from the liquidation of rubber trees.

In particular, Quang Nam Rubber Company, during the quarter, reported a loss of VND17 billion, reflecting its investing in Vien Dong Seafood Company, resulting in its largest loss since the first quarter of 2013.

Hoang Anh Gia Lai was one of the local enterprises investing in the rubber business in 2011, when rubber prices were at their highest, but later there were many difficulties in the global rubber market, including reductions in world rubber prices. The difficulties affected on the rubber business of Hoang Anh Gia Lai, reported dantri.com.vn online newspaper.

But, the recovery in rubber prices on domestic and world markets resulted in net revenues at Hoang Anh Gia Lai reaching VND35.5 billion in the third quarter of 2016, a year-on-year increase of VND5 billion.

Further, the increase in rubber prices offers an opportunity for Hoang Anh Gia Lai to recover production and sales of rubber in the future.

Shrimp sector must cut costs

Vietnam’s shrimp industry should reduce production costs and improve food safety to improve its competitiveness.

Truong Dinh Hoe, secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), made the statement at a round table on improving the competitiveness of Vietnam’s shrimp industry. The meeting was held by the Ministry of Agriculture and Rural Development’s General Department of Fisheries, VASEP and GIZ’s Integrated Coastal Management Programme in Can Tho on November 15.

The dialogue attracted 100 participants from central and local state offices, businesses and farmers in Cuu Long (Mekong) River Delta.

The General Department of Fisheries said Vietnam had 700,000ha shrimp rearing land in 30 provinces and cities. The total area of rearing shrimp was expected to increase to bring millions of jobs and develop a supply chain for medicine, feed, services and processing activities.

Hoe said in 2015, Vietnam was the second largest shrimp producer in the world, accounting for 14% of global market share. Vietnam’s shrimp exporters exported large amounts of giant tiger prawns to the US and Australia.

Local shrimp enterprises have expanded their market shares while the shrimp industries in Thailand and China have been hit by diseases, he said.

Vietnam would face difficulties in exports when Thailand and China’s shrimp industries recover if local enterprises don’t reduce production costs and improve the quality of export shrimp, Hòe said.

Vo Van Phuc, director of Vietnam Clean Fishery JSC, said at the dialogue that the shrimp industry has had low output and high production costs and was dependant on the demand of Chinese traders.

In addition, farmers and processing enterprises have not created production and business chains, he said. The local supply industry has not met demand of the processing sector while the state has not paid much attention to developing the processing sector.

Hoe said domestic production costs had risen, including feed, varieties, electricity and water costs. The shrimp industry lacks strong links between farmers and processors and has few value-added products. Some state policies for industry have been insufficient. Meanwhile, markets such as Japan and Australia have enhanced regulations controlling food safety for imported shrimp.

Hoe said to improve the competitiveness of Vietnamese shrimp on the world market, the local shrimp industry must reduce production costs and improve food safety.

The enterprises should make use of preferential tariffs under free trade agreements and follow export markets closely to create reasonable business plans, he said.

Phuc said the State should only give operation licences for enterprises meeting conditions about food safety and operation environment. It should also enhance management for quality of material, chemical products and animal medicines.

Many participants said the local shrimp industry should have transparency of input production and increase the quality of varieties and feed.

HCM City plans massive golf course near biosphere reserve

The city already has three courses, with another one in the making.

Ho Chi Minh City’s urban planning department is seeking permission for another golf course in the city, which already has three.

The department proposed a 36-hole golf course over more than 135 hectares (336 acres) in the coastal district of Can Gio, home to a treasured mangrove forest.

It said the project will not affect paddy fields and natural habitats. No particular developer has been named.

Under a plan approved by the government, HCMC will have five golf courses by 2020. One of 266 hectares (657 acres) in Thu Duc District and another of nearly 160 hectares near Tan Son Nhat airport have been fully opened. Another has been partially opened.

Site clearance work has begun for the fourth golf course in Binh Chanh District.

Can Gio's mangrove forest of 31,000 hectares (76,600 acres) is the home of around 200 different species of wildlife and 150 species of flora. UNESCO recognized the wetlands a world biosphere reserve in 2010.

HCMC is also considering building a small golf course in the coastal Nha Be District.

The development of golf courses to target affluent tourists has been a controversial issue in Vietnam. Investors see it as a big draw but environmental experts are vocal about serious pollution threats due to the heavy use of fertilizers and pesticides, often near bodies of water.

For example, Tan Son Nhat golf course reportedly uses 190 tons of fertilizers and nearly nine tons of pesticides every year.

Le Anh Tuan, a senior environment researcher at Can Tho University in the Mekong Delta, said international studies have found that each hectare of these courses uses three to five times more chemicals than the same area of agriculture land.

A national development plan said that by the end of 2020, Vietnam will have 96 golf courses, including 19 in the Red River Delta and four in the Mekong Delta, the two main rice baskets of the country.

Food processing holds good investment prospects

The big gap between production and market demand for processed food means there are good prospects for investment in the processing industry, experts said at a workshop in Ho Chi Minh City on November 16 to promote investment in food processing. 

Food consumption accounts for about 15 percent of Vietnam’s annual GDP, and it increased by 18 percent in 2015. Meanwhile, the food processing and beverage production respectively grew by 8.5 percent and 7.4 percent the same year. 

Vietnam is a world leading exporter of agricultural products, which means the food industry holds great development prospects not only in the domestic market but also the foreign ones, said Deputy Minister of Industry and Trade Ho Thi Kim Thoa. 

Bui Huy Son, Director of the ministry’s Trade Promotion Agency, said Vietnam’s signing of economic partnership agreements with other countries opened up a vast market for domestic and foreign- invested companies in this industry. 

Claudio Dordi, an expert at the European Trade Policy and Investment Support Project (EU-MUTRAP), was of the opinion that there remain many shortcomings in the local food processing industry, such as small-scale production, slow restructuring in agriculture and the rampant use of chemicals and pesticides. However, Vietnam can make use of an abundant workforce and fresh materials to assist the growth of this industry. 

Dang Xuan Quang, Deputy Director of the Foreign Investment Agency, admitted that the local food processing hasn’t been attractive to foreign investment. There were 521 FDI projects worth 7.6 billion USD in this industry as of the end of October this year. 

To promote foreign investment in food processing, experts advised that local authorities develop zones supplying agricultural materials to serve investors, bolster technology transfer, and try to sign more mutual recognition agreements on processed food quality examination.

Hanoi: 10-month foreign investment jumps 2.6 times year on year

Hanoi attracted 445 foreign invested projects with total registered capital of 2.8 billion USD between January and October, rising by 2.6 times from the same period of 2015. 

About 1.2 billion USD of the registered capital was implemented during the period, the Government portal (chinhphu.vn) quoted Deputy Director of the municipal Department of Planning and Investment Tran Ngoc Nam as saying at a meeting on November 15. 

Big foreign investments were poured into some industries that the capital city is strong at, he said, noting that in the hi-tech sector, 300 million USD was committed for the building of a Samsung research and development centre. 

FDI companies have posted growth in the disbursed capital and performance, which in turn would promote their confidence in the market and the local investment climate, Nam said. 

One-fifth of the enterprises nationwide are based in Hanoi, making the capital city one of the leaders in business number, he said, adding that the continually improved business environment has facilitated the establishment of new firms. 

From 2011 to 2015, 80,209 companies were set up in Hanoi, accounting for 43 percent of the total number of firms founded here between 1992 and 2015. 

More than 22,000 new businesses with registered capital of over 203 trillion VND (about 9.1 billion USD) have been born in the city since the beginning of 2016, respectively rising by 19 percent and 42 percent from a year earlier. 

Nam attributed those outcomes to drastic moves to tackle business difficulties, promote investment, and hold dialogues with enterprises. 

The gross domestic product of Hanoi this year is estimated at 8.03 percent – a six-year high, he added.-VNA

Lao Cai expands border gate economic zone

The expansion of Lao Cai Border Gate Economic Zone with investment of over 14 trillion VND (around 625 million USD) from 2016-2020 has been approved by Prime Minister Nguyen Xuan Phuc. 

According to the Prime Minister’s decision No. 40/2016/QD-TTg taking effect on November 15, the Lao Cai Border Gate Economic Zone includes a tax area, a border gate area, an industrial cluster and industrial craft area, an entertainment area, a tourist area, an urban area, a residential area, and other functional areas. 

Of the capital, 2 trillion VND (90 million USD) comes from the State budget, 957 billion VND (43 million USD) from the local budget and the remainder sourced from enterprises. 

Nguyen Tien Dung, Deputy head of the Lao Cai Economic Zone Management Board, said the move will help the province fully exploit its geographical and transport advantages to boost export-import, the local economy and cross-border trade between Vietnam and China. 

The board is working with agencies to review mechanisms, policies and projects to put the expanded economic zone into operation by the first quarter of 2017. 

According to the plan, the Lao Cai Border Gate Economic Zone will cover the districts of Bat Xat, Bao Thang, Muong Khuong and Si Ma Cai and Lao Cai city. The province’s import-export value is hoped to reach 4.6 billion USD by 2020 and 10 billion USD by 2030.

Food processing attractive to investors: deputy minister

The big distance in growth rate between food production and consumption made the food processing industry attractive to investors and showed a large development room in the field, said deputy Minister of Industry and Trade Ho Thi Kim Thoa at a conference in HCMC on November 16.

Specifically, domestic food consumption now accounts for 15 percent gross domestic product with the growth rate of 18 percent a year while production grows only 8 percent.

In addition, Vietnam has attended many free trade agreements (FTAs) bringing food processing companies tax incentives from 50 countries in the world.

In the upcoming time, Vietnam will assist domestic businesses to boost the export of key food products to take advantage of incentives from signed FTAs with Japan, South Korea, Russia and European nations. This will be an advantageous condition for domestic businesses to attend the field.

Int’l conference promotes product safety, local exporters’ compliance

Product safety and compliance to export markets’ requirements were discussed at an international conference in Ho Chi Minh City on November 15. 

The event was organised by the American Chamber of Commerce in Vietnam - HCM City chapter and the American Apparel & Footwear Association (AAFA ). 

Speaking at the event, Director General of German TUV Rheinland Vietnam Frank Juettner, said Vietnamese enterprises need to comply with legal regulations and the requirements of each export market. 

Vietnamese exporters need to focus on developing brand names and labeling to ensure their products meet international safety standards, Juettner said. 

He suggested that ministries, sectors and businesses develop a management system for a supply chain from materials to finished products, especially for apparel and footwear. 

AAFA Senior Vice President, Supply Chain Nate Herman said all stakeholders in a supply chain, such as producers, exporters and partners need to communicate closely with one another and comply with legal regulations. 

According to experts, Vietnam will need to join global supply chains and customs reform to fulfill its commitments it has made to join the free trade agreements (FTA), such as the Trans Pacific Partnership and the Vietnam – Europe FTA. 

Business representatives pointed to difficulties facing them in meeting the US requirements, particularly the safety requirements of each state.

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