Unofficial fees being charged at Đình Vũ Port

Vietnamese Prime Minister Nguyễn Xuân Phúc has asked the Ministry of Finance to verify press reports on the customs department receiving unofficial fees without invoices, the Government Office said.

According to an article published by the Tiền Phong (Vanguard) newspaper, a year after representatives of Đức Giang Chemical and Detergent Powder Joint Stock Company complained they were forced to pay unofficial fee to customs department officials at Đình Vũ Port without an invoice and therefore proposed intervention by the Ministry of Industry and Trade (MoIT), the company still had to pay the fee.

This was stated by Đào Hữu Huyền, chairman of the company’s Board of Directors, at a conference organised by the MoIT, held on August 18.

Huyền said the fee was reduced by half to VNĐ5 million (US$220) for one container. However, this expense was a matter of concern for his company.

The MoIT was requested to deal with the information and submit a report to the Prime Minister before September 30.

Experts: Production chains vital for pork industry

Vietnam’s pig farming industry should be restructured in a sustainable and competitive manner with a focus on establishing production chains for farmers and businesses, experts have said at a recent conference in Hanoi.

Nguyen Ngoc Hoa, Deputy Director of the Ho Chi Minh City Department of Industry and Trade, said developing production chains is important for the pig farming industry.

He took HCM City as an example. The city has launched a safe pork production and supply chain in which each farmer or trader needs to have their pork certified as safe and with a clear origin by municipal authorities if they want to join the chain.

The chain will help farmers and traders better advertise their products and cut costs and help authorities trace pork origins more effectively, he said. 

Dao Quang Vinh, director of a food company in Hanoi, agreed. He urged more leading enterprises and cooperatives to join the chains. It is also necessary to explain the importance of joining the chains to farmers, he said.  

During the event, Minister of Agriculture and Rural Development Nguyen Xuan Cuong mentioned small-scale farming with low productivity and lack of production and storage technologies as major challenges facing the domestic pig farming industry.

He stressed the need to expand organic farming while restructuring production methods, with priority given to launching pork production chains.

Other participants at the forum suggested ministries and sectors build a communications system to provide farmers and businesses with information about market demand to successfully develop pork production chains.

Vegetable exports in August hit nearly US$300 million

Vegetable exports in August reached US$296 million, bringing total revenue in the first eight months of this year to US$2.32 billion, a rise of 46.5% compared to the same period last year.

China, Japan, the US and the Republic of Korea were the leading markets for Vietnamese vegetables, consuming 85 percent of the exports. 

High growth was also seen in other markets, including Japan with 61.7%, the United Arab Emirates, 61.4%; China, 61.3%; and Russia, 49.4%.

Vietnam also imported US$169 million worth of vegetables, bringing the total figure in the first eight months to US$1.02 billion, up 93.7% year on year.

According to the Ministry of Agriculture and Rural Development, in August, the domestic fruit market fluctuated greatly due to changes in markets and heavy rains.

Over 700 businesses to attend Int’l Travel Expo HCM City

More than 700 businesses from 32 localities nationwide and 18 countries and territories will participate in the 13th International Travel Expo Ho Chi Minh City (ITE HCMC), which will run at the Saigon Exhibition & Convention Centre from September 7 to 9.

The ITE HCMC, which is a leading tourism event in the Mekong sub-region, is held annually by the HCM City People’s Committee and the Ministry of Culture, Sports and Tourism. 

It is viewed as an opportunity for Vietnamese and foreign firms to introduce their tourism products and services. This year, with the theme “Your Gateway to Tourism in Asia”, there will be more than 300 booths, a rise of 15 percent compared to last year’s figure.

A highlight of the event will be a programme designed especially for international buyers and the media, with the expected attendance of nearly 300 buyers and 40 reporters and bloggers from the UK, France, the Netherlands, Germany, India, New Zealand and Thailand, said Bui Ta Hoang Vu, Director of the HCM City Department of Tourism, at a press conference on August 30.

An array of networking events will be held in the framework of the fair, including a meeting of tourism ministers and seminars on tourism-related topics such as introduction of HCM City’s tourism and Vietnam-Italia travel cooperation development.

According to Ngo Hoai Chung, Deputy Director of the Vietnam National Administration of Tourism, Vietnam aims to serve 13 million international visitors in 2017, an increase of 30 percent compared to 2016.

To realize the target, Vietnam’s tourism sector has stepped up activities to promote tourism and increased links with travel agents and airline.

HCMC workshop discusses digital economy

Potential benefits and challenges for the digital economy and new-age regulations for new-age businesses were discussed at a workshop in HCM City on August 30.

Pradeep S Mehta, secretary general of CUTS International, said, “The digital economy is about three things: big data, advanced analytics, and the Internet of Things. And it is undeniably changing the nature of the job market, corporate competition and corporate infrastructure.

“Fifteen years ago, when we spoke about big names in businesses, we counted oil companies, car manufacturers, retail chains, airlines, consumer goods producers, etc. Nowadays, when we talk about corporate giants, it is Apple, Google, Amazon, Alibaba, Facebook, Uber, etc. that come to our mind.”

They are part of a small yet influential group of companies that constitute the cutting-edge of digital advancement, he said, adding that in a sense they have spearheaded digitalisation.

Vo Tan Thanh, vice president of the Vietnam Chamber of Commerce and Industry (VCCI), said the digital economy is an indispensable step as the traditional economy gradually becomes saturated.

“The development of the digital economy and transfer and utilisation of technologies will provide an opportunity for developing countries like Vietnam to catch up with other developed economies quickly,” Thanh said.

If businesses can take advantage of technologies, they can improve their efficiency and expand markets, he said.

According to Google and Temasek, Southeast Asia has the fastest growing global internet population with around 260 million users.

The number is projected to increase to 480 million by 2020, Pham Que Anh, director of CUTS International in Vietnam, said.

The value of its internet economy is expected to grow to US$200 billion by 2025, primarily driven by growth in e-commerce, she said.

Nguyen Manh Hung, deputy chairman and general secretary of the Standard and Consumer Association, said e-commerce has developed rapidly in Vietnam and there is a lot of room to develop further.

Business-to-customer transactions had been worth US$4.07 billion in 2015, up 37% from 2014 and accounting for 2.8% of total retail and consumer services, he said.

Last year, 35% of businesses had online sales channels, a year-on-year increase of 7%, while 60% of consumers said they shop online, he said.

“Application of information and communication technology advancements in commerce has brought benefits for both sellers and buyers,” he said.

Digital technologies enable businesses to promote their products, services and brands to customers in the most effective manner, and at the same time help consumers find information about the products quickly, easily and comfortably, he said.

But the digital economy also comes with concerns like cyber security, data and privacy breaches, behavioural discrimination and manipulation, lack of liability, and job losses, Mehta said.

Delegates at the workshop said the digital economy has come to be known as an incubator for new-age businesses, which are based on disruptive technologies and innovative business models.

Despite their huge success, many such businesses have found themselves in turmoil. Due to the disruptive nature of such businesses, regulatory bodies often find it difficult to regulate such entities, and may end up applying archaic regulations, which may hamper their growth, they said.

Therefore, developing appropriate legal regulations that promote the welfare of consumers and ensure the legitimate rights and interests of all enterprises in the market and at the same time stimulate their creativity are needed, they said.

At the workshop, CUTS International launched a project titled “Regional Inclusive Growth Project” it will implement in three countries - India, the Philippines and Vietnam -- for 18 months till the end of 2018.

It is aimed at highlighting the need to strengthen the digital economy in these three countries by showcasing best practices from across sectors and geographies regarding the benefits brought to consumers by digital platforms and technologies and identifying and pushing for the removal of bottlenecks and barriers.

IIP up 6.7% in eight months

The national index for industrial production (IIP) increased 6.7% year-on-year in the first eight months of this year, the General Statistics Office (GSO) reported.

The metric was lower than the growth of 7.2% recorded in the first eight months of 2016, and 9.9% recorded in the same period of 2015, GSO said.

The low growth rate was due to the reduction of 6.9% in production in the mining industry, one of key industrial production sectors.

Other industrial products with drops in production included crude oil (10.8%), natural gas (9.2%) and liquid petroleum gas – LPG (13.4%), automobiles (4.5%) and mobile phones (0.8%).

The processing and manufacturing industry, which accounted for over 70% of total industrial output, saw a yearly IIP rise of 10.8%.

Many industries also enjoyed a surge in IIP, such as electric production and distribution (8.6%), water supply and waste treatment (7.4%), metal production (21.2%), electronics, computer and optical products (17.8%), rubber and plastic products (10.4%), paper production (10.1%) and weaving (10%).

Among key industrial products that posted high IIP increases in eight months were television sets (34.4%), raw steel and iron (23.9%), urea (17.3%), fabric (17.7%) and processed seafood (9.4%).

According to the GSO, the consumption index of the processing and manufacturing industry rose 9.5% year-on-year, higher than the growth of 8.1% year-on-year in the first eight months of 2016, contributing to the growth of production in this industry.

GSO said that to continue growth in industrial production in the future, the industrial sector should increase the index of consuming products to reduce inventory because the inventory index of the sector in the first eight months witnessed a year-on-year surge of 9.8%, higher than the 8.9% year-on-year growth in the first eight months of 2016.

Proper strategies needed to boost aquatic exports to China

Aquatic product exporters should devise proper strategies to make inroads into to China – a potential but choosy market, experts said at a workshop held in Ho Chi Minh City on August 30.

To export aquatic products to the market, businesses must be on the list of manufacturers recognised by Chinese authorities and their products must receive the host’s quality certificates, said Dang Ngoc Sam Thuong, Supply Chain Manager at Amanda Foods Vietnam.

Tran Van Linh, Chairman of the Thuan Phuoc Seafood Joint Stock Company in the central coastal city of Da Nang, China is likely to become the largest shrimp importer of Vietnam in the future.

According to deputy director of the Vietnam Association of Seafood Exporters and Producers (VASEP)’s Training and Trade Promotion Centre Le Hang, Vietnam’s aquatic product export to China continued to grow through years from 152 million USD in 2007 to 860 million USD in 2016 with strong growth recorded in shrimp and tra fish exports.

Deputy head of the Foreign Trade Department under the Ministry of Industry and Trade Nguyen Phu Hoa said Chinese customers prefer high-quality products. 

Therefore, businesses need effective strategies to develop their brand names, thus promoting exports to this market, he suggested.

Yang Yong, Chairman of the managing board of the Guangzhou Nutriera Biotechnology Co., Ltd. said Chinese consumers are willing to pay 20-30 percent higher than normal for imported products with high quality, safety and convenience.

Vietnam shipped 749 million USD worth of aquatic products abroad in August, bringing the total in the first eight months of 2017 to 5.13 billion USD, up 18.1 percent from the same period last year.

According to the Ministry of Agriculture and Rural Development, the largest buyers of Vietnamese aquatic products included the United States, Japan, China and the Republic of Korea, accounting for 55.6 percent of total exports.

Export value to China showed the biggest increase of 57.2 percent, followed by Japan (30.8 percent), the United Kingdom (30.1 percent), the RoK (28.8 percent), the Netherlands (25.3 percent) and Canada (20.7 percent).

Toyoda Gosei builds fourth airbag manufacturing plants in Vietnam

Toyoda Gosei Co., Ltd. has released plans on its website to build the fourth airbag manufacturing plant in the northern city of Haiphong to meet the growing demand as safety regulations become more stringent in regions around the world.

The plant named Toyoda Gosei Haiphong Co., Ltd. has a total investment capital sum of $24.6 million. The construction is expected to start in March 2018 and the plant is expected to start production of airbag parts and steering wheels in July 2019 for export to final airbag assembly plants in Japan, North America, Europe, and other regions.

In 2004, Toyoda Gosei established the first plant to manufacture airbag parts with the investment capital of $74.95 million. To date, Toyoda Gosei has three plants in operation in Haiphong's Nomura Industrial Zone.

In 2016, the plants’ production capacity was 14.5 million airbag parts and 2.2 million steering wheels. The figures are expected to reach 23 million airbag parts and 3.2 million steering wheels by 2023.

Established in 1949 and headquartered in Kiyosu, Aichi Prefecture, Japan, Toyoda Gosei is a leading specialty manufacturer of rubber and plastic automotive parts and LEDs. Today, Toyoda Gosei Group provides a variety of high-quality products internationally, with a network of approximately 100 plants and offices in 18 countries and regions.

Airbags and other safety system products are a key business segment for Toyoda Gosei and the company is moving to strengthen its global production capacities.

Earlier in November 2016, South Korean Kolon Industries Inc. and leaders of the Binh Duong People’s Committee signed a memorandum of understanding (MoU) to confirm the South Korean firm’s investment plan to develop a $1-billion factory manufacturing airbags and industrial fabric for automobile tires in the southern province of Binh Duong.

In the framework of the event, a representative of Kolon Industries announced a land lease contract with Investment and Industrial Development Corporation (Becamex IDC). Accordingly, Kolon Industries will rent a 42-hectare area in Becamex IDC’s expanded Bau Bang Industrial Park to construct the factory.

According to Kolon Industries’ plan, the investment capital of $1 billion will be disbursed in three phases. The first phase, with a total investment capital of $220 million, will be disbursed in 2017-2018, and the second phase will be finished by 2026 with $600 million. The $1-billion mark will be hit sometime after 2026.

Hau Giang seeks capital for key projects

The southern province of Hau Giang will organise an investment promotion conference in the middle of September to attract investment capital for its key projects, said Truong Canh Tuyen, vice chairman of the provincial People’s Committee.

The key sectors that need investment include the infrastructure in industrial zones and complexes, the wholesale markets for farm produce, the processing and preserving systems for farm produce, the high-tech agriculture zones and tourism.

The province leader said that the conference and the related activities, such as the trade fair, would draw the participation of some 300 investors.

On this occasion, the province will grant investment certificates to the investors, as well as sign memoranda of understanding with enterprises, Huynh Thanh Hoang, deputy director of the provincial Department of Industry and Trade, said.

Currently, there are 4,200 enterprises with a total registered capital of VND45 trillion (US$2 billion). The province has so far attracted 40 foreign and domestic investors, who have poured capital worth $760 million and VND 66.4 trillion, respectively, in the local industrial zones and complexes.

Vietnam Customs holds dialogue with European businesses

The General Department of Vietnam Customs held a dialogue with European businesses in Ho Chi Minh City on August 30 to help clear customs issues of their concern, especially customs revaluation.

The European Union (EU) holds a major proportion in trade with and investment in Vietnam. Bilateral trade jumped almost 11 times from 4.1 billion USD in 2000 to 45 billion USD in 2016 and is forecast to hit 50 billion USD this year.

A survey by the European Chamber of Commerce in Vietnam (EuroCham) shows that most of the questioned businesses still know little about regulations on customs revaluation.

EuroCham Executive Director Almut Roessner said as most revaluation decisions in Vietnam were made by basing on customs database or reference values collected in the internet, they haven’t been objective or in line with regulations.

According to the HCM City Customs Department, only 2-3 percent of commercial goods had their customs value revaluated in 2016. The 25-percent figure provided by EuroCham might include non-commercial goods.

In response to European firms’ opinions, Nguyen Quoc Toan, deputy head of the department’s export-import tariffs division, assured that customs valuation has always been conducted in conformity with legal regulations and in a transparent manner. Customs database is not used as a basis for adjusting goods’ customs value.

To tackle obstacles during the handling of customs procedures, the customs sector will work harder to popularise new legal documents and regulations among businesses, thereby helping to promote their awareness and coordination with customs agencies in enforcing law, preventing smuggling and trade fraud, and creating a healthy business and competition environment, he said.

Deputy General Director of Vietnam Customs Hoang Viet Cuong appreciated EU businesses’ contribution to Vietnam’s economic growth, noting that improving the business climate and businesses’ competitiveness is critical to the sustainable growth and competitiveness of the Vietnamese economy.

The customs sector is striving to realise trade facilitation targets, including cutting down the time needed to handle customs procedures for export goods from 108 hours to 70 hours, and for import goods from 138 hours to 90 hours, the official added.

Investor accused of lying about apartment sizes

Dozens of households at Imperia Garden, a high-grade apartment project in Hanoi have denounced the project investor for selling apartments which were smaller than advertised.

Imperia Garden, located on Nguyen Huy Tuong Street in Thanh Xuan District, was developed by HBI Company.

Having suspected their apartments were smaller than advertised, the households hired an independent measuring firm and found out that these apartments were from one square metre to four square metres smaller than according to the floor plans they had been shown.

Speaking with DTiNews, Dinh Thi Nguyet, the owner of apartment D2405 said her apartment was 2.6 square metres smaller than it should have been.

“Besides the papers to hand over the apartment, we weren’t given any other papers to show that the building was checked by authorities as regulated,” Nguyet added.

Nguyet also complained about rainwater leaking through the window into the house and moisture on the floor of the toilet.

Le Thi Kieu Oanh who owns apartment A1909 said that her apartment was three square metres smaller than according to the contract.

A representative from the investor said all the apartments had been measured by the Hanoi Land Office before being provided with a red book.

Under the contracts signed between the households and the investor, in cases where there is a difference between the measured area, the investor will arrange the meeting for measuring units to compare their figures and methods to find out what is more suitable for the regulations of the law.

“We’ll pay compensation for customers in cases where their measuring method is more accurate,” said a representative from the investor.

Vietnamese high-quality products fair opens     

A Vietnamese High-Quality Products Fair opened on Wednesday in Bien Hoa city with 150 businesses taking part.

Organised to coincide with the occasion of the National Holiday and the beginning of the school year, the fair displays garments and textiles, footwear, handicrafts, food, household products, electrical goods, and school supplies such as notebooks, school bags, uniforms and desk lamps.

To run until September 4, the fair also includes many activities to promote Vietnamese products, including a section for exhibiting products meeting international standards, a “Green-Nice Market” where visitors can enjoy activities like culinary and oil extraction demonstrations and a sales area where customers can buy products at big discounts.

A promotion to sell over 1,000 different products at VND20,000 (89 US cents) every day at 10-10.30am and 4-4.30pm, game shows, a cooking contest and art performances are also on the schedule.

Organised by the High Quality Vietnamese Product Business Association, the event is being held at the Dong Nai Conference and Event Centre on Nguyen Ai Quoc Street. 

APEC members aim for free, open trade     

APEC-member economies agreed to continue enhancing regional cooperation to achieve the Bogor Goals of freer and open trade by 2020 in the Asia-Pacific region, an official said at a press conference held on Wednesday in HCM City.

The press conference was held to conclude the third Senior Officials Meeting (SOM3) of the Asia-Pacific Economic Co-operation (APEC) forum held in the city from August 18-30.

Speaking at the meeting, Deputy Foreign Minister Bui Thanh Son, the APEC 2017 SOM chair, said: “In the context of concerns about the unequal distribution of the benefits of globalisation and trade liberalisation, APEC members have affirmed their determination to continue bringing APEC co-operation into practical benefits for each economy, community and business.”

SOM3 aims to continue promoting the completion of the Bogor Goals of free and open trade and investment in the region by 2020, he said.

“Participants reached a consensus that the implementation of Bogor Goals must be associated with creating equal opportunities for every citizen and enterprise to contribute to, and benefit from, achievements of regional economic growth and linkage, and to contribute to global efforts for sustainable development,” he added.

“In parallel, APEC needs to enhance response capability and creativity in the context of the rapidly developing fourth industrial revolution,” he added.

During the two-day SOM3 meeting, APEC senior officials discussed major issues in the fields of healthcare, micro-, small- and medium-sized enterprises, food security and sustainable agriculture, e-commerce facilitation and the internet-based economy, among others.

Senior officials have adopted three guiding documents for cooperation, including the e-commerce facilitation framework, support industry initiative document, and APEC Supply Chain Connectivity Framework Action Plan.

In addition, Viet Nam reported on outcomes of the High-level Policy Dialogue on Sustainable Tourism, the High-level Meeting on Health and the Economy, and the High-level Policy Dialogue on Food and Security and Sustainable Agriculture in Response to Climate Change.

Viet Nam also reported the outcomes of the Symposium on Advancing Inclusion in the APEC Region and updated the proposed APEC Action Agenda on Promoting Economic, Financial and Social Inclusion in the APEC region.

The country updated preparations for the Small and Medium Enterprises Ministerial Meeting, and the Women and the Economy Forum.

Son said the Food Security Week in Can Tho produced important results with three key documents being adopted: Can Tho Statement; action plans on food security; and rural-urban development.

In addition, the High-level Meeting on Health and the Economy, attended by health ministers, sought ways to improve patient-first investment and build capacity for healthcare financing and access in the region with an aim to ensure a healthy and productive workforce, he said.

During the meeting, SOM3 discussed the recent development of Regional Trade Agreements and Free Trade Agreements (RTAs/FTAs) and the SOM Dialogue on RTAs/FTAs, according to Son.

It also discussed the implementation of Lima Declaration on Free Trade Agreement in the Asia-Pacific Region (FTAAP), as well as the next steps to develop the APEC Post-2020 Vision, including the possibility of a leaders’ statement on APEC Toward 2020 and Beyond, Son said.

“With only three months to go for the APEC Economic Leaders’ Meeting in Da Nang, Viet Nam is ready for everything to ensure a successful APEC year,” Son said.

Speaking at the press conference, executive director of the APEC Secretariat, Dr Alan Bollard, praised Viet Nam for organising the APEC this year professionally.

“Viet Nam, which has a big role in hosting the APEC this year, has chaired the meeting very professionally, considering how many delegates participating in the event and how many events it has hosted so far,” he said.

“Viet Nam has been pooling some ideas from other economies about other initiatives, some of which will be announced in Da Nang by the leaders.”

“We notice some trade tension, but we definitely are focused on Bogor Goals to achieve free and open trade in Asia-Pacific no later than 2020,” he told Viet Nam News.

The Bogor Goals include a subset of elements such as commitment to the multilateral trade system, trade facilitation, consultations on economic growth strategies, regional capital flows and other macro-economic issues, as well as to increased development cooperation to attain sustainable growth and equitable development for APEC economies.

APEC is currently finalising its second-term Bogor Goals review.

The initial findings suggest that, since the Bogor Goals were launched, average applied tariffs have fallen and it is getting faster and cheaper to trade across borders.

Extreme poverty has dropped by 83.5 per cent, life expectancy continues to increase, and enrolment in tertiary education has more than doubled.

However, the initial findings also suggest that some sectors, especially agriculture, have seen higher tariffs, and greater use of non-tariff measures affecting trade.

Behind-the-border restrictions continue to affect services trade and investment, while negative perceptions on restrictions facing foreign investors are more prevalent. 

Auto imports rise slightly in August     

Some 8,000 complete built-up units of cars worth US$180 million were imported to Viet Nam in August, marking a slight increase of 1,000 units in volume and $13 million in value compared with the previous month.

These figures were estimated by the General Statistics Office of Viet Nam (GSO).

The increase was marginal, however it pointed to positive signs for the auto import market.

Insiders said domestic auto consumption is currently unstable because many consumers are still waiting for prices of cars to be lowered until early 2018 when import tariff in the ASEAN bloc will become zero per cent. Notably, local automakers and distributors have been trying to accelerate consumption through discounts and promotional programmes.

According to the GSO, Viet Nam imported some 66,000 units in the first eight months of the year with total import turnover of nearly $1.39 billion, down 4.4 per cent in volume and 14.4 per cent in value year-on-year.

Based of the current situation, according to some forecasts, the turnover of CBU import cars at the end of the year will continue to fall, as new policies will lead to changes. The dramatic change either up or down will depend on whether the auto industry has a new policy in place and the market has clearly defined the "picture" of car prices in 2018.

Feedback for tax cut draft

According to the Ministry of Finance’s draft document in which the ministry presents two methods for implementing tax cuts on parts that are used to assemble cars with nine seats or less and trucks with capacity of five tonnes and below in Viet Nam, the Viet Nam Chamber of Commerce and Industry (VCCI) and the Vietnam Automobile Manufacturers’ Association (VAMA) sent their ideas on the document before it is submitted to the Prime Minister for approval in the future. The document would be in effect from January 1, 2018 to December 31, 2022.

According to the ministry’s first proposed method, import tariffs on 163 auto parts will be cut to zero per cent. The average tariff of the set of auto components will be reduced from 14-16 per cent to seven per cent for nine-seater cars and to one per cent for trucks. Under the second method, the ministry wants to decrease import tariffs on 19 parts, including engine, gear-box, automatic transmission system and fuel injection pump, which are not produced in Viet Nam, from the current 3-50 per cent to zero per cent. Under this plan, the average import tax on the set of auto components will decrease from 14-16 per cent to 9-11 per cent for cars and to 7.9 per cent for trucks.

VCCI said it chose the first method because it will help automakers cut costs more significantly than the second method. It is expected to encourage the import of parts to boost auto assembling of cars with nine seats or less and trucks with capacity of five tonnes and below.

Meanwhile, VAMA proposed that the ministry reduce import tax on all auto parts that are imported by automakers to zero per cent when import tariff in the ASEAN bloc becomes zero per cent in 2018. This would also be applied for all the material and semi-products imported by part suppliers. No condition will be given to automakers or part suppliers.

According to the ministry’s draft, to benefit from the tax cuts, automakers of cars with nine seats or less and trucks with capacity of five tonnes and below must reach an annual growth rate of 16-18 per cent and 40 per cent of production value must be accrued locally, in line with the national automobile industry development programme. Automakers that do not meet the targets will pay higher taxes on imported parts. They also must reach an annual growth rate of 16 per cent with minimum output of 34,000 units by 2018. Output must rise steadily each year to hit 61,000 units by 2022. As for trucks, the ministry requires the manufacturers to achieve an annual growth rate of 18 per cent with minimum output of 8,000 units in 2018, raised to 15,000 by 2020.

VAMA said the draft tax cuts only created equality of import taxes between locally-assembled cars and imported cars, and there was no preference for local auto manufacturing.

As for policies to support local manufacturing, VAMA proposed that the ministry issue policies supporting local automakers to enhance their competitiveness and raise costs for imported cars to maintain the domestic automobile industry and attract more investment into Viet Nam. 

Workshop seeks to develop organic farming in Vietnam

A workshop was held in Hanoi on August 31 to collect opinions from experts, manufacturers and businesses to build a decree on organic farming development in Vietnam.

The event was organised by the Ministry of Agriculture and Rural Development and the European Trade Policy and Investment Support Project (EU-MUTRAP).

Participants discussed the revision and modification of the set of standards TCVN 11041:2005 guiding the manufacturing, processing, labeling and marketing of organic food products. 

They also mentioned the strict management of manufacturing and business activities and certification of organic farm produce to ensure food safety, quality and origin of products.

Incentives for businesses to invest in producing organic fertilisers, bio-fertilisers, microorganisms, and biological botanical products were another issue on the agenda, along with the development of brands and market for Vietnamese organic products.

Former head of the Plant Protection Department under the Ministry of Agriculture and Rural Development Nghiem Xuan Hong said international treaties do not have particular regulations for organic products. Therefore, it is necessary to build a new set of high standards for Vietnamese organic products.

He suggested investing in technical scientific research and supporting cooperative groups and cooperatives to switch to organic production. 

Dao The Anh, deputy director of the Institute for Food Plants, said in the near future it is essential to improve policies and legal regulations to boost the development of organic farming.

He recommended promulgating and implementing policies to encourage organisations and individuals to join organic agricultural production such as exempting or reducing income taxes and providing incentives in land lease.

Legal regulations on the management of production, certification and labelling must ensure harmonization between the specific conditions of Vietnam and regional and global regulations.

Deputy Minister of Agriculture and Rural Development Tran Thanh Nam said the organic farming area in Vietnam has been increasing over the past few years, which reached about 76,000 hectares in 2015, over 3.5 times against 2010.

Hanoi enjoys steady growth in all key sectors

Hanoi’s economy has expanded since the beginning of this year with steady growth recorded in all the key sectors of industry, trade, tourism and services and agriculture, reported the municipal People’s Committee.

The city’s industrial production index grew 6.5 percent in the first eight months of 2017, of which the mining industry rose 7.1 percent. The manufacturing and processing sector expanded 6.6 percent while the electricity production and distribution registered a 6.1 percent increase. The water supply and waste treatment sector saw growth of 3.1 percent.

Total revenue from retail sales and services in August hit 202.56 trillion VND (8.92 billion USD), representing monthly and yearly increases of 2.1 percent and 12 percent. Of which, total retail sales were 48.78 trillion VND (2.14 billion USD), up 2.8 percent against the previous month and 14.7 percent compared to the same period last year.

During the January-August period, Hanoi’s export turnover enjoyed a year-on-year increase of 8.5 percent to 7.6 billion USD.

Since the beginning of the year, Hanoi has welcomed more than 2.3 million foreign visitors, up 22.7 percent year-on-year.

In the remaining months, Hanoi will focus on stimulating consumption, exchanging goods with other localities, and promoting export while well managing the domestic market and developing tourism products.

The city will approve a planning scheme for developing industrial clusters by 2020 with a vision to 2030 while calling more investors to build local industrial parks. It will take measures to remove difficulties in terms of procedures for investors and pay attention to big domestic and foreign-invested projects so that they could be licensed in 2017.

Hanoi welcomes over 16,700 new businesses in eight months

The number of newly-established business in Hanoi rose by 14 percent to 16,714 in the first eight months of 2017, with a combined registered capital of approximately 130 trillion VND (5.72 billion USD), up 4 percent year on year.

The figure was revealed at a meeting on August 31 between the municipal People’s Committee, departments, sectors and districts to review the achievements since the beginning of this year and outline tasks for the remaining months.

Statistics showed that over 223,900 enterprises are operating in the capital city. In the reviewed period, some 93,000 business registration applications were submitted online. The municipal administration has provided free consultancy for nearly 50,000 firms and individuals, both in and outside the country, who are doing business in the city.

Hanoi’s economy continued witnessing growth trend in key sectors, including industry, trade and services, tourism and transportation. 

The city welcomed 114 non-budget investment projects, worth 71 trillion VND (3.12 billion USD); 22 Public-Private Partnership (PPP) projects with a total investment of 60 trillion VND (2.64 billion USD); and 1.74 billion USD in foreign direct investment (FDI) projects.

So far, Hanoi has had 128 PPP projects with a combined investment of 333 trillion VND (14.65 billion USD), of which eight projects have been completed and 120 others are underway or preparing procedures.

Speaking at the meeting, Chairman of the municipal People’s Committee Nguyen Duc Chung emphasised that attracting investment is a very important task of the city though many challenges remained. 

Hanoi has taken a wide range of measures to create favourable conditions for investors by stepping up the application of information technology and holding dialogues with businesses to remove their difficulties, he added.

14th China - ASEAN Expo on horizon

The 14th China - ASEAN Expo (CAEXPO) will be held in Nanning, Guangxi province, China, from September 12 to 15.
A spokesman for China’s Deputy Minister of Commerce said that trade and economic cooperation between China and ASEAN via CAEXPO has made important strides forward.
“ASEAN-China bilateral trade was more than $452 billion in 2016,” he said. “ASEAN is currently China’s third-largest trading partner, fourth-largest export market, and second-largest importer.”
Direct Chinese investment into ASEAN, he went on, has reached $9.31 billion this year; $3 billion more than direct investment from ASEAN into China.
As at the end of May, bilateral investment between China and ASEAN stood at more than $183 billion in total.
Bilateral cooperation in infrastructure has substantial potential and has brought positive results to date. As at the end of May, signed agreements in infrastructure investment between China and ASEAN exceeded $296 billion.
China is also actively involved in the economies of ASEAN and East Asia.
A representative from the Guangxi Zhuang Autonomous Region said that CAEXPO has contributed to cooperation between China and ASEAN in recent years and has become a symbol of the region.
The 14th CAEXPO will continue to give priority to investment, cooperation, and economic exchanges between ASEAN and China. It will focus on mutually-beneficial cooperation between China and ASEAN, introducing prestigious products from both, and will also enhance the quality of its exhibitions.
The expo will also focus on innovating and promoting achievements gained and expanding and enriching cultural exchanges to create a more effective cooperative mechanism.
Kazakhstan will be a special partner of CAEXPO 14, according to the China - ASEAN Expo Secretariat.
The Kazakh delegation is expected to be led by Deputy Minister of Agriculture, Ms. Gulmira Isayeva, who will deliver an address at the opening ceremony. Kazakhstan will also host national trade promotion conferences, open national pavilions, and conduct other trade links to showcase its advantages in agriculture, trade, and investment, as well as promote the country’s image for international cooperation.

Ha Nam exerts efforts to draw more investment

Investment in Ha Nam has significantly increased in recent years thanks to the northern province’s concerted efforts in attracting more projects.

The province’s FDI between 2011 and 2015 tripled that of the 2006-2010 period while the number of FDI projects from 2016 to the end of July 2017 was equal to the 2006-2010 figure.

The province has so far lured 688 investment projects, including 197 FDI and 491 domestic investment ones, with total registered capital of 6.07 billion USD. Since the beginning of this year, Ha Nam attracted 12 FDI and 44 domestic investment projects with a combined capital of 448.4 million USD.

The province has been considering more incentives to draw investment in the fields of urban development, water supply and drainage, urban environment, social and low-cost housing.

It has built houses, schools and other facilities for workers at local industrial parks while encouraging enterprises to provide free bus services to them. 

The province has worked to improve infrastructure at industrial parks and Nam Cao University as well as enhance environmental treatment, especially around Tay Day area.

It has also adopted policies to invite more skilled workers from other localities to work in the province and carried out projects to training workers for local Japanese and Korean enterprises.

It has closely coordinated with foreign investment promotion agencies like Japan External Trade Organisation (JETRO) and Korea Trade-Investment Promotion Agency (KOTRA) to get more access to foreign investors.

VNA/VNS/VOV/SGT/SGGP/TT/TN/Dantri/VNEVET