IATA grants Vietjet IOSA certification for international operation standards

Vietjet has received the certificate of IATA Operational Safety Audit (IOSA) from the International Air Transportation Association (IATA) for its outstanding operational standards. The airline made the announcement at an event to review the airline’s business performance for the first half of the year and discuss strategy planning for the second half of 2015 in Ho Chi Minh City.

At the event, Vietjet was also honored to receive an Acknowledgement Certificate from Prime Minister of Vietnam Nguyen Tan Dung for its continuous contributions to the development of Vietnam’s economy and society in recent years.

These are major accomplishments and hugely significant milestone in the airline’s development path. IOSA certification is a confirmation of the commitment of an airline to deliver safe operations based on the principles stated in the IOSA Standards Manual. Earlier, Vietjet’s technical reliability ratio has also been registered at 99.49%, a highly impressive rate.

Speaking at the event, Blair Cowles, IATA’s Asia-Pacific Regional Director for Safety and Flight Operations, said: “IOSA is an internationally accepted and recognized evaluation system designed to assess the operational management and control systems of an airline. IOSA certification involves a great deal of hard work and requires a significant commitment of people, time and resources. I would like to congratulate Vietjet for making that commitment and obtaining IOSA certification.”

“The IOSA certification shows that flight safety assurance is Vietjet’s top priority – this is especially impressive considering that the aviation industry in the world and the region has been growing faster and faster in terms of fleet expansion, flight network, and passenger and cargo transportation capacity over recent years. With our commitment in complying with world-class safety and security standards, we expect to bring our clients safe, comfortable, joyful and friendly flights,” said Luu Duc Khanh, Managing Director of Vietjet.

Despite anticipated difficulties and challenges following the deadline for the ASEAN Economic Community, Vietjet still posted impressive business results in the first six months of 2015, growing at 205% year-on-year and amassing revenue of VND5.7 trillion ($US258 millions), thus meeting the company’s planned profit.

Besides, the airline’s load factor remains high at approximately 90%, transporting more than four million passengers with 25,788 flights and on-time-performance (OTP) ratio staying at 83%. All together, the airline consists of 70% of the country’s total domestic air transportation growth rate.

The training center, which opened in early 2015, has so far trained and certified nearly 3,300 staff as well as providing 246 training courses for engineers, pilots, flight safety management team and others for aviation skills.

Vietjet currently operates a fleet of 26 aircraft of A320s and A321s with 33 domestic and international routes from Vietnam to Thailand, South Korea, Cambodia, Singapore, Taiwan and China. The airline has offered millions of people the opportunity to travel by air, making air travel the most popular means of transportation in Vietnam and internationally.

Policies could help SMEs borrow

The Government should have appropriate policies to enable credit guarantee funds to operate more efficiently so that small- and medium-sized businesses can borrow easily from banks, a conference heard in HCM City last Friday.

In 2001 the Government passed regulations on establishing and operating credit guarantee funds, but since then only 23 such funds have been established and guarantees have been provided for a very small number of SMEs.

Prof Dr Ha Thi Thieu Dao of the Banking University of HCM City said the HCM City Credit Guarantee Fund for Small and Medium Enterprises, the largest of its kind in the country, has provided guarantees for only 105 firms since its establishment in 2006 and none since last year.

Tran Buu Long, deputy director of the fund, said most Vietnamese businesses cannot get bank loans since they have no assets to mortgage. But they cannot a credit guarantee fund to back them if they do not have assets to mortgage and feasible business plans, he said.

If they can satisfy these requirements, they would rather go directly to banks to ask for loans instead of to these funds, he said pointing out an obvious drawback in the system.

Khuat Quang Trung, deputy general director of the Ha Noi Investment Development Fund, pointed to another, saying most funds have small charter capital – mostly a few billion dong – meaning banks are cautious or even refuse to lend against their guarantee.

The Government needs to address these problems, delegates said.

Nguyen Thi Thuy Van, a director of Nam A Bank, said small-sized guarantee funds should merge to form a larger one to improve the system.

Ministry says cut transport fees

The Ministry of Finance has sent a document to provincial departments of finance to improve the management of transport fees, as well as prices of essential goods, to prevent price increases.

The ministry said the move aimed to stabilise prices amid decreases in petrol costs.

It added that fuel prices have been managed flexibly under the market mechanism and during the downward trend, causing positive affects to the economy.

In addition, the central bank's move to widen the dong's trading to minimise the negative impact of China's currency devaluation would also affect imported and exported products.

Accordingly, the ministry asked relevant authorities to actively follow changes in market supply and demand, goods prices from both inside and outside the country, while collecting, analysing and implementing forecasts to take actions for stabilising prices.

Authorities were also asked to strengthen inspections and monitoring of the management of prices, taxes and fees for essential goods and services, such as transport costs, milk for under six year-old children, medicines, cement, construction steel and liquified petroleum gas.

Further, localities should carefully review price and price constituents of goods that are directly affected by petrol prices.

The ministry required the departments, in co-operation with departments of transport, to ask transport firms to announce fares based upon recent petrol price decreases.

The retail price of RON 92 petrol was reduced by VND816 to VND19,304 (88 US cents) per litre on August 4. This was the fifth reduction in petrol prices this year.

After five reductions, the petrol price was reduced by VND3,600 per litre.

State-owned groups speed up equitisation

State-owned economic groups are continuing to restructure their member companies, even as they surpass their set business plan targets for the first half of the year.

This news was reported at a conference in Ha Noi last Friday.

The Viet Nam National Coal and Mineral Industries Group (Vinacomin) and the Viet Nam National Chemical Group (Vinachem) reported that they have completed equitisation and divestment from operations outside their key business fields.

Electricity of Viet Nam (EVN) Deputy General Director Ngo Son Hai said the group has withdrawn investments from real estate and financial companies, and completed preparations for the equitisation of Power Generation Corporation 3.

Further, a representative from Viet Nam National Textile and Garment Group (Vinatex) said Vinatex has also withdrawn capital from financial institutions, while accelerating the carrying out of 65 projects valued at VND6.2 trillion (US$279 million).

Also, Viet Nam Posts and Telecommunications Group (VNPT), Viet Nam National Oil and Gas Group (PetroVietnam) and Viet Nam Rubber Industry Group are revamping their organisations and applying advanced administration methods.

During the first half of this year, these groups, with the exception of PetroVietnam, posted year-on-year increases of 3-13 per cent in revenues, contributing a cumulative VND76.9 trillion ($3.4 billion) to the State coffers.

Those attending the conference heard that Vinacomin is one of the groups that encountered the most difficulties in the first months of this year, especially after floods in late July forced the group to suspend coal mining in the northern province of Quang Ninh.

However, the group is committed to ensuring coal supplies for the economy, as well as for the power and chemical sectors, said Do Xuan Ly, deputy head of the group's personnel and organisation department.

Meanwhile, a representative from PetroVietnam said the group is suffering from the adverse impacts of falling global oil prices.

However, cooperation between PetroVietnam, EVN, Vinacomin and Vinatex in using their respective products is expected to help the groups maintain production during these hard times.

Hanoi, Taiwan stock exchanges collaborate in corporate governance

A delegation of the Taiwan Stock Exchange Corporation (TWSE) shared its corporate governance experiences with the Hanoi Stock Exchange (HNX) on August 13 and 14.

In his welcome speech, HNX General Director Tran Van Dung appreciated TWSE’s cooperation and assistance to HNX, particularly in corporate governance.

He added that thanks to experiences learned from global stock exchanges, including TWSE, HNX has implemented a number of corporate governance-related programmes such as building the corporate information management system, assessing corporate information transparency, and honouring companies with good corporate governance.

At the training session for HNX staff members, TWSE specialists shared their expertise in implementing the corporate governance assessment system, building assessment criteria, and conducting the assessment with the participation of businesses.

They also presented their know-how in organising and managing the information announcement system as well as critical reforms to improve the quality of enterprises’ shareholder meetings.-

Can Tho city partners with Iranian province

Vice Chairman of the Can Tho municipal People’s Committee Dao Anh Dung (left) signs MoU on cooperation with Iranian Mazandaran province (Photo: VNA)

Officials from the Mekong Delta city of Can Tho and Iran’s northern province of Mazandaran have signed a Memorandum of Understanding (MoU) on cooperation in agriculture, cultural delegation exchanges, and tourism.  

The signing ceremony took place during the working visit to Mazandaran by Vice Chairman of the Can Tho municipal People’s Committee Dao Anh Dung from August 10-13.

Under the MoU, the two localities will introduce their partner’s potential in the fields of agriculture, economics, tourism, and science to local business communities via the media.

Mazandaran leaders expressed their hope to collaborate with the Mekong Delta city and Vietnamese businesses, especially in rice farming, poultry breeding, and trade of chicken, beef and lamb.

Governor Fallah said he will send a delegation to Can Tho to study the implementation of cooperation contents as specified in the MoU.

On August 13, the Can Tho official also signed a MoU with Bobby Batmanghelidj & Associates, an Iranian business consultant company, on trilateral cooperation on growing rice in Can Tho using Japanese technology and capital to export to Iran.

During his visit, Vice Chairman Dung had working sessions with leaders of Iranian departments of agriculture, seafood, cultural heritage, industry, mining and trade, economics and finance.

Certified seafood enters domestic market

Vietnamese seafood products with international certifications, traditionally used for export purposes, are expected to be served at domestic dining venues across the country as part of the Sustainable Seafood Week from now to August 24.

At a press conference in Ho Chi Minh City on August 14, Huynh Tien Dung, Programme Manager of the World Wide Fund for Nature (WWF) in Vietnam – organiser of the week, said more seafood farms in Vietnam are gaining international certificates on sustainable farming, but most domestic consumers have little information about those certified products and hardly have any chance to get them.

As such, the week aims to introduce the safe products to the domestic market, through which they will protect the environment and consumer health, noted Dung.

WWF Country Director in Vietnam Van Ngoc Thinh and Head of the Hung Vuong seafood company Duong Ngoc Minh agreed that the benefits of responsible products for consumers would encourage responsible farming and production among producers.

The WWF announced its intention to boost relevant communications campaigns on sustainable seafood consumption while working with enterprises to increase the distribution of certified products on the domestic market.

Related information on the campaign, including the list of restaurants serving the certified seafood, can be found at cabenvung.vn.

There are 60 aquatic farming areas in the Mekong Delta region meeting standards set by the Aquaculture Stewardship Council (ASC) and Ben Tre’s clam has been accredited by the Marine Stewardship Council (MSC) since 2009, the only product earning the certification in Southeast Asia.

Vietnamese retailers urged to expand mobile e-commerce

Vietnamese retailers should pay heed to mobile e-commerce to improve product access for consumers and promote market competitiveness, an official of the Ministry of Industry and Trade said on August 14.

Wireless electronic equipment such as tablets and mobile phones are more than just communication and information searching devices, also serving as an interaction channel between retailers and consumers, Director of the ministry’s Vietnam E-commerce and Information Technology Agency (VEITA) Tran Huu Linh said at a workshop in Ho Chi Minh City.

The department reported that the online shopping value per capita in Vietnam is about 145 USD per year while the revenue of the e-commerce B2C (business-to-consumer) model reached some 2.97 billion USD, accounting for 2.12 percent of the country’s total retail sales.

Main products shopped for online include technological and electronic devices, clothes, cosmetics and household appliances.

Up to 64 percent of Vietnamese shoppers pay in cash for goods ordered online while 37 percent use e-wallets and 14 percent pay through bank transfers, the department said.

Experts attributed a boom in Vietnam’s online shopping to consumer willingness to try new shopping experiences along with business efforts to make shopping easier such as improving transaction safety or providing free or cheap delivery services.

They said owning a website is not enough to be considered e-commerce, and that each company needs to devise a multi-channel strategy to access shoppers, adding that quality products with attractive designs, reasonable prices and good after-sale services will help e-commerce develop and yield high profits.

The workshop on mobile e-commerce was among key activities in the run up to the online shopping day – Online Friday 2015, held on the first Friday of December by the VEITA and the Vietnam E-Commerce Association.

The first Online Friday took place in 2014 and attracted 1,000 businesses offering 3,226 discounted items. It generated 154 billion VND (7.3 million USD) in revenue, 2.48 times profits during average days, according to VEITA.

The agency expects this year’s event will see sales worth 25 million USD.

Cement demand rises in first seven months

The domestic cement industry saw year-on-year growth of 10 percent in consumption of cement and clinker to 40.98 million tonnes in the first seven months of this year.

Further, 6.5 million tonnes of cement was used in July, according to the Ministry of Construction.

Le Van Toi, head of the ministry's Building Material Department, said the growth in the use of cement was due to higher demand in technical infrastructure construction projects, including transport, hydro-power and social housing construction.

Moreover, new demand in the local real estate market has caused a growth in the use of cement.

Meanwhile, the export of cement also reached a year-on-year rise of 13 percent to 9.77 million in the first seven months of this year, including 1.35 million in July.

According to the ministry, the price of input material for production has increased continuously, though the selling price of cement has stabilised.

The ministry also said the local cement industry has seen one trend of expanding production in large cement enterprises, while supplying cement to a second trend found in restructuring small cement enterprises.

For instance, the Quang Ninh Cement and Construction Joint Stock Company temporarily stopped production at its Lam Thach Cement Factory on August 1 as it restructures its cement manufacturing.

Also, the Tien Son Ha Tay Cement Joint Stock Company was removed from the local stock exchange in mid-June due to their long-term losses. For three years, from 2012 to 2014, it recorded continuing losses, though local demand for cement had recovered.

In 2014, for instance, the company took in total revenues of 37.7 billion VND, while losing 7.6 billion VND.

Meanwhile, the Thai Group Joint Stock Company (formerly Xuan Thanh Group) has received credit to develop the Xuan Thanh Cement project, with a total capacity of 4.5 million tonnes per year, at an expected cost of 11 trillion VND. Three banks have provided loans for the projects, including BIDV, Agribank and Military Bank.

Additionally, the Thai Group has purchased the Minh Tam Cement Factory project with an annual capacity of 2 million tonnes in the southern province of Binh Phuoc from the South Joint Stock Company.

Sugar production to reach 1.56 million tonnes

The sugar industry aims to produce 1.56 million tonnes of sugar from processing 15.67 million tonnes of sugarcane during the 2015-2016 season.

The announcement was made during a conference to review sugar production results from the 2014-2015 season, held by the Ministry of Agriculture and Rural Development (MARD) in collaboration with the Vietnam Sugarcane and Sugar Association (VSSA) in Quang Ngai province on August 14.

The MARD forecast that sugar consumption in 2015-2016 will be 160,000 tonnes per month with domestic supply reaching 1.88 million tonnes over the period.

According to the MARD report, the country has 305,000 hectares under sugarcane with an average yield of 65.3 tonnes per hectare while the total output reached 19.9 million tonnes in the 2014-2015 season.

In the period, 41 sugar mills nationwide produced about 1.41 million tonnes, including 700,000 tonnes of refined sugar.

By June 15, total sugar inventory at factories was 389,000 tonnes, down 159,500 tonnes compared to the same period last year.

In the first six months of this year, factories sold about 1.02 million tonnes of sugar, including 69,000 tonnes for export and 956,000 tonnes for domestic consumption.

BIDV funds projects in Quang Binh

The Bank for Development and Investment of Vietnam (BIDV) will splash out 10.9 trillion VND (506.9 million USD) to support enterprises investing in garments, construction and tourism service sectors in the central province of Quang Binh.

The information was heard at a conference on provincial investment and tourism promotion held in Dong Hoi city on August 14.

At the event, Deputy Prime Minister Nguyen Xuan Phuc urged local authorities to accelerate the project implementation as part of the fresh bid to lift up the local socio-economic development.

The province needs to address enterprises’ challenges while paying attention to manpower and culture development policies, he underscored.

Chairman of the provincial People’s Committee Nguyen Huu Hoai hailed BIDV’s active contributions to the local development, saying that the bank has promoted a strong investment flow to the province in addition to its support for training and human resources development.

BIDV pledged to accompany Quang Binh province in its efforts to foster tourism while calling for domestic and foreign businesses to invest in tourism infrastructure, according to Chairman of the BIDV Board of Directors Tran Bac Ha.

He added that the bank will arrange capital for enterprises during their operation in the province.

On this occasion, BIDV donated 21 billion VND (976,700 USD) for social welfare activities in the province. Of the total, 5 billion VND (232,600 USD) is set out for tourism promotion programmes.

Awards bestowed on top firms

The Vietnam Property Awards on August 14 recognised the country's top real estate developers and finest developments in Ho Chi Minh City and Hanoi as well as emerging resort destinations.

Organised by Ensign Media and supervised by BDO, the fifth largest accountancy network in the world, this was the first award event of its kind organised in Vietnam.

"It has been a very monumental year for Vietnam's property sector," said Terry Blackburn, CEO of Ensign Media.

"After a few slow years, the Vietnamese market is back on track, with many expat residents and investors as well as local industry players applauding the introduction of legal reforms on foreign real estate ownership in the country," he said. The panel of judges was headed by Rudolf Hever, co-founder and executive director of Alternaty Real Estate of Vietnam.

The awards included more than 30 prizes for best developer, development, design and "best of the best", such as best office development, best hotel development, best housing development, best residential development, and others.

The top winner at the awards will be eligible to compete with regional peers in the grand finale at the fifth annual South East Asia Property Awards 2015, which will be held at the Shangri La Hotel in Singapore in October.

Seafood week pushes eco-friendly products

The Sustainable Seafood Week with the message "Eat in Style–Know the Origin" opened in Ho Chi Minh City on August 14 in support of responsible production and products.

During the 10-day period, besides introducing Vietnam's responsibly farmed seafood to the domestic market, the programme will engage consumers in exciting activities to raise awareness of sustainable seafood, through a display of informative artworks, a theme-inspired flash mob and exciting mini-games at Crescent Mall in HCM City's District 7.

Consumers can visit cabenvung.vn to find the full list of restaurants participating in the programme, and also pledge their support online to demand sustainable seafood in the country.

"Consumers hold the power of demand and they can play an important role in transforming markets and industries to become more sustainable," said Dr. Van Ngoc Thinh, Country Director for WWF (World Wide Fund for Nature) -Vietnam, organiser of the event.

"When they speak and buy together, it encourages the community of farmers and producers in Vietnam that there is a domestic market, and they should continue developing sustainable seafood," he added.

The Aquaculture Stewardship Council (ASC) and Marine Stewardship Council (MSC) stamps are two of the most widely recognised international eco-labels that confirm that seafood meets strict standards.

Recent projects supported by WWF have greatly aided producers in the Mekong Delta to get their products certified. The number of the Mekong Delta's ASC-certified farms saw an almost nine-fold increase, from five farms in 2012 to 43 in 2014.

Vietnam's consumers, however, barely know of the existence and availability of these products, since most ASC and MSC certified seafood in the country is exported and very little is available domestically.

The Sustainable Seafood Week 2015 is part of WWF's effort to raise consumer awareness about the seafood sector's responsible practices.

WWF looks forward to gathering key players of Vietnam's seafood supply chain – from producers to end users – in a joint mission to achieve the large-scale availability of internationally certified products in the domestic market in the near future, and thus improve the country's environment and consumer health.

"Sustainability might be on every company's agenda, but when consumers don't see the benefits of your responsibly-produced goods in comparison to regular ones, it's easy to question the return on investment," said Duong Ngoc Minh, General Director of Hung Vuong Corporation, a top seafood producer in Vietnam, and the supplier of ASC certified seafood during the Sustainable Seafood Week 2015.

In 2014, Vietnam exported 7.9 billion USD of seafood, an increase of 18 times compared with 2013. The Mekong Delta produces 80 percent of national seafood production, although it covers only 12 percent of the land of the entire country.

Half of top 20 seafood manufacturers in Vietnam have joined a sustainable aquacultural production system, and 60 local aqua-cultural regions have gained ASC-certified along with 20 others plant to reach certification.

VASEP: Crab exports to Japan slowing down

Vietnam shipments of crab to Japan in the six months leading up to July clawed their way up 28.7% compared to last year’s same period to US$8.329 million on the back of tightened controls by Japan over Russian imports.

The Vietnam Association of Seafood Exporters and Producers (VASEP) also reported that Japan accounted for 17.4% of market share during the period, making it the third largest export market.

The average sales prices for crab hovered around US$14 a kilogram, which was price competitive with other ASEAN countries the report read, however demand is forecast to slowdown throughout the remainder of the year.

Dong Nai busy with land lease orders

Nine out of 29 industrial parks in the southern province of Dong Nai have been flooded with land lease orders to build warehouses or develop production facilities.

They include Bien Hoa 2, Go Dau, Nhon Trach 3, Nhon Trach Garment and Textile, Bien Hoa 1, Tam Phuoc, Loteco and Ho Nai industrial zones, according to the Dong Nai industrial parks’ management board.

The board said over 122 hectares have been leased so far this year, over 22% higher than the set target, with industrial parks such as Long Thanh, Loc An-Binh Son, An Phuoc, Nhon Trach Garment and Textile, Ong Keo, Dau Giay and Giang Dien drawing the greatest interest from investors.

The total capital poured into infrastructure development in the industrial parks has exceeded VND15.4 trillion (roughly US$693 million). Most of the sum has been injected into Nhon Trach 3, Long Duc, Amata and Giang Dien industrial zones.

Under a master plan ratified by the Government, Dong Nai will have a total of 31 industrial parks, 29 of which have completed infrastructure and are operational.

Reduced scale, capital for road project

The Prime Minister gave nod to a proposal to cut capital for and scale down a road project that connects Hanoi – Hai Phong and Cau Gie – Ninh Binh highways.

Accordingly, its investment will be reduced by VND876 billion (US$40.4 million) to about VND4.68 trillion (US$215.5 million) due to reduced material and labour costs as well as capital squeeze, which has resulted in construction delay.

The project began in 2011 and is expected to be completed within 2015.

However, due to financial difficulties, its first phase of building two one-way traffic lines is scheduled for completion by 2017 and after the second phase, the road is set to have four traffic lines.

Trade barriers sink fish and seafood exports

Despite all the talk of global integration and reduced tariffs, Vietnam’s fish, seafood and agriculture exports continue to be plagued by non-tariff barriers (NTBs) to trade at just about every turn, say industry leaders.

In the early months of the year, fish and seafood exports have dipped 23.5% over last year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP) and market access issues urgently need to be addressed.

“Perishable products like fish and shrimp have been hard hit by the strong rise in the value of the US dollar against the euro and yen as it caused their value to drop markedly in the US and Japanese markets,” VASEP said.

Though the strong dollar hasn’t directly impacted the volume of the exports it definitely has decreased the overall value in the US, EU and Japan (the three largest markets) and reduced the bottom line.

Fish and seafood businesses have also had failure this season gaining access to a number of foreign markets and the lack thereof has caused the overall volume of shipments into these regions to tumble.

VASEP said the US has imposed preliminary anti-dumping duties on pangasius fish imports while it conducts a complete review and the industry will continue to suffer over the next 12 months if this barrier is not adequately resolved.

The Vietnam Food Association (VFA) agreed that non-tariff barriers remained a significant issue noting that China has set stricter rules for the quality of rice imports, creating yet another hurdle for businesses to jump over.

Even though China has been the biggest rice importer over recent years, exports of rice would be higher if the obstacles were removed.

The VFA said these NTBs force businesses in the rice industry to incur substantial costs due to delays, complex documentation requirements and the unpredictable quality standards and procedures at border crossings.

Transporting rice to African nations can be tedious, time-consuming and expensive so countries such as India and Pakistan have an advantage in these markets thanks to their closer proximity and lower transportation costs, the VFA underscored.

Vietnam’s economic viability in these and similarly situated markets and ability to compete internationally on an equal footing far beyond our national borders depend on removing these roadblocks and liberalising commerce.

The VFA stressed the key barrier to trade in agriculture remains the lack of sufficient investment in modern state-of-the-art technologies to improve rice quality and varieties in all phases of production and training for workers.

In pretty much most markets around the globe, those exporting agricultural products have run up against non-tariff barriers that are throwing up barricades to trade that haven’t been adequately addressed by free trade agreements.

Free trade agreements primarily address tariff issues whereas non-tariff barriers need to be addressed through investing and enhancing government-to-government relationships.

Tax sector expands online payment services

The General Department of Taxation (GDT) officially signed agreements on August 14 with 15 domestic and foreign banks to allow electronic tax payment services.

According to the department, with 27 banks having signed earlier, the total number of banks now involved in e-tax payment services has reached 42.

Reviewing the results of the implementation of the e-tax service, Bui Van Nam, general director of the department, said the service has been put in place in 63 cities and provinces in over 700 districts and communes across the country.

There are more than 398,000 businesses already engaged in using e-tax payment services, with more than 327,000 businesses successfully registered for use of the service with banks, he said.

Further, according to Nam, the total amount of taxes collected through portals for online payment services has reached 40.7 trillion VND (1.87 billion USD).

With the majority of joint-venture and foreign banks participating, the department's leader said businesses will have more choices when paying taxes.

In the near future, Nam said the tax sector plans to expand its e-tax payment service to the remaining banks in the country.

The department will also bring this service to all businesses, to ensure 90 percent of the nation's businesses participate in the service in 2015, as directed by the Prime Minister, said Nam.

The 15 banks signing the agreements on August 14 included Ocean Bank, VietBank, ANZ Vietnam, HSBC Vietnam, Standard Chartered, Shinhan Vietnam, Vietnam-Russia bank, VID Public bank, Indovina bank, Bank of Tokyo-Mitsubishi, Mizuho bank, Sumitomo Mitsui Banking Corp, Bank for Investment and Development of Cambodia (BIDC), Bangkok Bank Hanoi branch, and BNP Paribas HCM City branch.

Bac Giang earns trillions of dong from lychee

The northern province of Bac Giang has earned around 4 . 6 trillion VND (2 07 million USD) from lychee this year.

The figure was released by the provincial People’s Committee at a conference reviewing the lychee production and consumption in 2015 on August 14.

The province has more than 31,000 ha under lychee, which produce an average 195,000 tonnes of fruit annually.

Bac Giang aims to expand the application of international standards such as VietGap and GlobalGap in lychee production in order to enhance revenues in the coming time, said Duong Van Thai, Vice President of the Committee.

Additionally, the locality has worked with the Ministry of Science and Technology, and the Ministry of Agriculture and Rural Development on the transfer and application of techniques in growing, harvesting and preserving lychee fruits to enhance productivity and ensure product quality for export.

The province has asked the Ministry of Industry and Trade for assistance in marketing lychee in potential foreign markets to boost lychee export.

Publicity campaigns will be conducted to boost the consumption of local lychee, with focus on promoting the brand names of the lychee from Luc Ngan and Phuc Hoa districts in international markets.

The connection between producers and businesses is given priority in a bid to develop an effective distribution network, thus ensuring sustainable markets for the fruit.

The province expects to see a year-on-year increase in domestic consumption, from 55 percent this year to 60 percent in 2016.

In the 2015 lychee season, more than 12,300 hectares of lychee were cultivated in line with VietGap standard, while another 100 hectares met the GlobalGap standard, producing some 600 tonnes for such strict markets as the US, France, the UK, Australia, and Japan.

PV Gas, Posco sign gas processing contract

PetroVietnam Gas Corporation (PV Gas) and a joint venture of South Korea's Posco Engineering Co Ltd., along with PetroVietnam Technical Services Corporation (PTSC), signed an engineering, procurement and construction (EPC) contract on August 13 for the VND5.5 trillion ($248.81 million) first stage construction of the Ca Mau Gas Processing Plant.

Leaders of PV Gas South Korea's Posco Engineering Co Ltd., along with PetroVietnam Technical Services Corporation at the signing ceremony. Photo dddn.com.vn

The project, located at Khanh An Industrial Zone, Khanh An Commune, U Minh District in the southern-most province of Ca Mau, includes construction of a gas processing plant, storage facility, port and a 37 km pipeline. Total investment capital for the project has been set at VND11 trillion ($497.62 million).

The Ca Mau Gas Processing Plant project will use the advanced liquid separation technology developed by UOP Company, a subsidiary of the US based Honeywell Corporation.

Raw materials for the plant will come from local mines, such as Cai Nuoc and others in the south western region.

Upon completion, after an expected period of 18 months, the project will annually supply the market with approximately 207,500 tons of liquefied petroleum gas (LPG) and 11,900 tons of condensate, generating revenue of about VND4.4 trillion ($199.05 million) and contributing approximately VND 500 million ($22.62 million) per year to the State budget.

Currently, PV GAS, the largest player in the LPG market in Viet Nam, has supplied gas for the production of nearly 35 per cent of the nation's electricity and maintains over 70 per cent of the domestic demand for LPG, serving many industries in the country.

Securities firm launches online trading platform

Techcom Securities last week launched its new e-securities trading platform, TCInvest.

TCInvest allows users to open an account and buy and sell stocks online. Users can access the platform through the internet, with their mobile devices, or by phone. TCInvest also includes features such as TCWealth and TCrating, with research and analysis about the stock market and companies in order to help users make decisions.

Most importantly, TCInvest is integrated with Techcombank’s core banking system, so that users can transfer funds immediately.

“TCInvest is the manifestation of two of our strategies: to invest heavily in technology, and to bring investment products to individuals that have previously only been available to institutional investors,” said Nguyen Xuan Minh, chairman of the board of members of Techcom Securities.

“TCInvest is very convenient because users can utilise the services of both the bank and the securities company on the same platform,” said Tran Nhat Nam, director of online investment of the company

Techcom Securities is 100 per cent owned by Techcombank. It operates in three main areas, namely online trading, investment products, and investment banking. Its services include research and analysis of companies, as well as sectors, asset management, and corporate finance advisory, which consists of investment consulting, M&A consulting, financial consulting, and management consulting.

Vietnam currently has 675 million stocks listed on the Hanoi and Ho Chi Minh stock exchanges, with the total market capitalisation of VND1,270 trillion ($60 billion). As of July 31, Vietnam Securities Depository has licensed 18,068 foreign investors to trade stocks, of which 2,727 are institutional investors and 15,341 are individuals.

BIDV, BacABank provide $147 million credit for cement project

The Bank for Investment and Development of Vietnam (BIDV) and Bac A Bank signed a VND3.1 trillion ($147 million) credit agreement on August 13 with the Tan Thang Cement Joint Stock Company to build a cement plant.

The BIDV and Bac A Bank have agreed to provide credit worth $147m to build a cement plant in Nghe An province. - Photo www.baomoi.com

The credit has a maximum term of 12 years.

The Tan Thang cement project, with total investment capital of more than VND4.5 trillion ($204 million), will be built in Quynh Luu District in central Nghe An Province. It is one of few localities in Viet Nam that have huge reserves of mineral resources to produce cement.

The plant is designed to have a capacity of 1.98 million tonnes of cement per year.

Around 30 per cent of its products will be exported.

The plant, a key project in the province, is part of the cement industry's development planning to 2020 and orientation to 2030, approved by the Prime Minister in 2011.

Its production line will come from leading cement equipment manufacturers such as Bedeschi (Italy), ThyssenKrupp (Germany), Loesche (Germany), Haver & BOECKER (Germany) and ABB (Switzerland).

Estimated consumption of cement this year will be 72-74 million tonnes, up from 1.5 per cent to 2 per cent compared to 2014, according to the Ministry of Construction. Domestic consumption is expected to be about 53-54 million tonnes and exports 9-20 million tonnes.

In the first six months of 2015, cement production was estimated at 34.16 million tonnes, an increase of 6 per cent compared to the same period of 2014.

Domestic consumption stood at 25.97 million tonnes, up 5 per cent, while exports totaled an estimated 8.19 million tonnes, up 7.7 per cent compared to the same period last year.

Vingroup spends $45.85 million on Ring Road 2's flyer over

The People's Committee of Ha Noi has approved real estate developer Vingroup's payment of VND 1 trillion (US$45.85 million) for the construction of Ring Road No 2.

The money is to be spent for construction of the section in the Vinh Tuy – Mai Dong area in the south of the city, according to the financial website cafef.vn.

Ring Road No 2 was planned by the city's Transport Department and includes a 5 km flyer over, connecting Vinh Tuy-Mo Market and Vong Intersection, and is expected to cost 5 trillion ($227 million).

The construction work was scheduled in 2012 to ease traffic congestion in the city, however, limited financing for land clearance had prevented the road construction to begin.

Thus, according to local media, Vingroup's disbursement of VND 1 trillion will be used for land clearance, adding that since Vingroup was chosen as the investor, with the flyer over being part of the Build and Transfer investment, the advance payment would be deducted from its financial obligations for the project.

Construction begins on HCM logistics centre

Transimex-Saigon Joint Stock Company (TMS) started construction of a new hi-tech bonded warehouse and logistics centre in HCM City on August 12.

Located in Ho Chi Minh City Hi-tech Park, 15km downtown from HCM City, the project has total investment capital of nearly VND600 billion ($27.68 million).

It comprises a system of bonded warehouses, normal warehouses, cold storages and container yards in an area covering 10ha. Meanwhile, the logistics centre will follow the model of a third party logistics provider for its operations, where it accepts orders from other logistics providers, assisting them with part or all of their supply chain management functions.

Upon completion in 2016, the project is expected to meet the demand for domestic distribution from enterprises inside and outside the hi-tech park as well as enhance import-export goods circulation.

Currently, there are many large enterprises, such as Intel, Samsung and Nidec, relocating their factories to this high-tech area.

TMS is the first logistics company to have registered for and received an investment licence for logistics services in the park, one of the two hi-tech parks in Viet Nam.

The centre will connect the southern provinces of Dong Nai, Binh Duong and Ba Ria-Vung Tau with the main ports of HCM City, including Cat Lai, Phuoc Long, Khanh Hoi and Sai Gon.

Yuan fall to slightly affect Vietnam tourism: insiders

While the cheaper Chinese currency will certainly make tour packages to Vietnam costlier for Chinese tourists, local travel agencies believe the impact of the weakened yuan will not be too serious.

Some Vietnamese tour organizers have closed new contracts with Chinese partners with the new yuan-U.S. dollar exchange rate, as China cut the yuan rate against the U.S. dollar for a second straight day on Thursday.

The People's Bank of China trimmed the reference rate for the yuan by 1.11 percent to 6.4010 yuan for $1, from the previous day's 6.3306, according to AFP.

The new forex rate means Chinese holidaymakers will have to spend more to travel to Vietnam, but the extra costs are inconsiderable, The Saigon Times Online reported, citing industry insiders.

“Our packages normally cost $200-$300, so [Chinese] customers will have to pay around a few dozen more yuan compared to the old prices,” Tu Quy Thanh, director of Travelink Co., told the economic newswire.

“The fluctuation is not big, and thus will not affect the market much.”

China is Vietnam’s biggest source of tourists. Vietnam received 1.9 million visitors from its northern neighbor in 2014, and nearly 950,800 in the first seven months of this year, according to official statistics.

Some local travel firms said their Chinese partners have asked to use the old yuan-U.S. dollar exchange rate to sign new contracts, but such requests were turned down most of the time, according to The Saigon Times Online.

On the other hand, Vietnamese tourists will benefit from the cheap yuan when it comes to shopping or dining in China. But the prices of tour packages to China will remain almost the same, as they are paid in U.S. dollars, industry insiders say.

Some Vietnamese travel firms, however, are concerned that Chinese low- and average-income earners will be more hesitant to spend their holidays abroad due to the yuan devaluation, as evidenced by the case of Russia.

Since late 2014, when Russia’s economy entered troubled times and the ruble collapsed against the U.S. dollars, the number of Russian tourists to Vietnam has fallen sharply.

Russia used to be one of the top ten largest markets for Vietnamese tourism, with annual two-digit growth rates.

But only 190,400 Russian holidaymakers visited Vietnam in the year to July, a 12 percent decline from the same period last year, according to statistics.

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