Coffee exports to Algeria surge     

Viet Nam’s coffee exports to Algeria saw a jump in the value of US$98.4 million in the first 10 months of the year, posting an 81 per cent increase and 66 per cent year-on-year rise in value.

Statistics from the General Department of Customs showed that in the period, Việt Nam’s total export value to Algeria reached $225.36 million, increasing 8 per cent from the same period last year.

Coffee has been the number one export product to Algeria, accounting for 30 per cent of the country’s imported coffee market share.

Coffee has been one of the favourite drinks in Algeria. Algeria often imports raw coffee and processes it within the country to assure it meets local taste demands.

Robusta coffee accounted for more than 85 per cent of the country’s imported coffee.

Algeria also imports coffee from Indonesia, Brasil, Italy and Cameroon.

According to Viet Nam’s Ministry of Agriculture and Rural Development, the country exported some 100,000 to 110,000 tonnes of robusta coffee this month. A number of coffee exports in November are expected to be lower than the previous month, as local exporters reduce their production by half due to concerns that rains could affect their harvests.

Prolonged rains in the Central Highlands region in recent weeks have caused coffee fruit to ripen slowly, reducing coffee supplies for the next few weeks.

The ministry also said this year’s harvest season would come later than usual if the weather did not improve, thus causing a shortage of coffee this month. 

Vietnamese pharmaceutical sector growth peaks in Asia     

Viet Nam’s domestic pharmaceutical industry is on the rise, due to booming demand stemming from increasing national health insurance coverage and increased spending on drugs per capita since 2010, former Health Deputy Minister Le Van Tuyen said during a Conference on Viet Nam’s pharmaceutical industry and policy held in HCM City on November 14.

Viet Nam is expected to enter the top 20 fastest and most stably growing countries in the pharmaceutical sector in the next five years, according to the Business Monitor International (BMI). Money spent on pharmaceutical products per capita in Viet Nam has doubled to around US$40 over the past 5 years.

Tuyen further commented on the favourable conditions for the development of the domestic pharmaceutical field as the fastest growing market in Asia, with 2015 sales at $4.2 billion and an average growth rate of 17 to 20 per cent from 2010 to 2015 with a prospect of 2017 growth about 17 per cent.

Nonetheless, total domestic pharmaceutical output only accounts for 45 per cent of total demand, leading to a constant supply shortage for hospitals. Also, eastern medicine currently only takes up 1 to 1.5 per cent of the total market, though the Ministry of Health has predicted a spike to 30 per cent in the next five years thanks to the vast ingredients selection of over 4,000 herbs.

Currently, the World Health Organization (WHO) has verified only 150 Vietnamese pharmaceutical factories as having Good manufacturing practice (GMP) quality. The MoH aims for a 2020 comprehensive cover of medicine supply with domestic production accounting for 80 per cent of total medicine demand, and an upgraded policy on investment and technology transfer.

The domestic pharmaceutical industry is lacking in several areas, such a long term concentrated development strategy as well as a modern promotion and distribution system. The current level of creativity is demonstrated through the low percentage of domestic patented inventions of 1 per cent.

VN imports 66,000 tonnes of Russian wheat     

Vietnam News Agency’s e-newspaper VietnamPlus cited Russian Sputnik as saying Viet Nam would import 66,000 tonnes of Russian wheat this week.

The ship carrying wheat to Viet Nam has already left Novorossiysk Port.

This event is the result of enduring efforts by specialists of Russia’s Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor).

With support from the relevant agencies of the two countries, since February, Russia has become a regular exporter of cereals and cereal products to Viet Nam.

Russian companies expect to boost wheat exports to Viet Nam from 2.7 million tonnes to three million tonnes this month. 

Organic farming called solution for safe products

Developing organic agriculture is an urgent task, given the fact that food safety violations, which pose serious threats to the health of the community, occur at an alarming rate, experts said.

However, measures should be adopted to expand this production method, experts noted at a seminar held in Hà Nội on Tuesday, as part of the 16th International Agriculture Trade Fair 2016.

Lê Văn Hưng of the Association of Việt Nam Organic Agriculture said areas under organic farming had been increased from 21,000ha in 2010 to 43,000 at present.

The demand for organic farming products is high in both domestic and foreign markets, such as Japan, Germany, South Korea and the United States, according to Hưng. In addition, prices for organic food are triple or four times higher than normal prices.

According to agricultural experts, while organic agriculture is developing well throughout the world, with revenue projected to approach US$59 billion per year (triple the 2000 figures), Việt Nam is still at its early stage of development.

Organic farming in the country is developing spontaneously, without any plan for creating organic zones. The country is still short of policies to support enterprises and individuals taking part in organic farming, while awareness by the public about organic products and the growing process remains limited.

To promote organic farming to ensure safe foods for the community, participants at the seminar agreed that it was necessary for farmers to undergo training and be given some time to adapt themselves to the standards of the Vietnamese Good Agricultural Practice (VietGap) or Global Good Agricultural Practice (GlobalGap).

In the meantime, the selecting of plants and animals suitable to each region, as well as the issuance of policies to attract more investors to fund organic production, also plays a vital role.

Vũ Trọng Khải, an expert on agricultural economics and rural development said, given the current situation, organic farming did not only improve incomes for farmers, but also ensured enough safe products were grown for domestic consumption and exports.

To help farmers learn organic farming techniques, Khải said, they should adopt VietGap, then GlobalGap and the production management of agricultural value chains.

Based on market demand and production, the government identified key agricultural products for each zone and set planning and linkage between provinces in each agro-ecological zone, he said.

To promote the development of organic farming, Hưng suggested ministries and agencies issue regulations and guidelines for organic production which are suitable to the country’s condition and in line with international norms for products which could be traceable through original labeling.

It is necessary to set up accreditation and certification for organic products, according to him.

Local authorities should set aside land to grow organic cultivation for key products, and offer support to organisations and individuals who engage or invest in organic production, Hưng said.

APEC summit to focus on maintaining growth

The upcoming APEC summit in Peru will focus on how to help its member economies maintain their growth rate amidst signs of slowdown and declining global trade, according to Executive Director of APEC Secretariat Allan Bollard.

Talking to Vietnam News Agency reporters in Singapore ahead of the 24 th summit of the Asia-Pacific Economic Cooperation (APEC) forum, Bollard said APEC leaders will also discuss in depth several specific issues including growth quality and initiatives to be carried out in the next year.

Regarding the Trans-Pacific Partnership (TPP) agreement, Bollard said it is not an initiative of APEC but rather one among APEC members.

Therefore, how to implement the deal will depend on its members, he said, adding that the members can hold meetings on the TPP on the sideline of the main events. 

According to the director, APEC is interested in the idea of an Asia-Pacific free trade zone and is considering promoting the establishment of such a zone. He said when doing so, APEC will need to look into the lessons of the TPP and economic cooperation in the region. 

Bollard affirmed that Vietnam has played an important role in many APEC activities and will host the APEC Summit in 2017. 

He said he is looking forward to working with the Vietnamese Government on not only activities now underway but also the themes for APEC Year 2017, which are expected to focus on connectivity among regional economies, small enterprises’ access to regional markets, the development of services and infrastructure development, among others. 

Vietnam has made good preparations for the 2017 APEC Summit, Bollard said, noting that the country is currently in a favourable position as it has signed many official cooperation agreements with APEC members. 

He remarked that Vietnam has been well aware that APEC brings opportunities for its integration in the post-globalisation period. 

The 24th APEC Summit is to take place in Lima, Peru, on November 19 and 20.

Thua Thien-Hue intensifies efforts to lure foreign investors

The People’s Committee of the central province of Thua Thien-Hue on November 17 held an online dialogue with the focus placed on improving the investment environment, solving difficulties and motivating enterprises. 

Chairman of the Thua Thien-Hue People’s Committee Nguyen Van Cao said the province chose 2016 as the “Year of Businesses” and since the middle of the year, along with some north central provinces, Thua Thien-Hue faced the sea environmental incident which has harmed production as well as the lives of locals. 

With a view to reducing difficulties for enterprises and encouraging them to drive the province’s economy, Thua Thien-Hue has implemented programmes to help enterprises develop, promote startups and create favourable conditions for the development of small and medium-sized enterprises. 

The province also focused on drawing and supporting investment by legalising policies to give investors high incentives in line with law. 

Based on these policies, the province has allocated capital to build some infrastructure works inside and outside industrial parks and industrial clusters like electricity, water, transport, wastewater to accelerate technical infrastructure projects of industrial parks and industrial clusters. 

Thua Thien-Hue also concentrated on developing transport infrastructure like the La Son – Tuy Loan Expressway, the national road 49B, 49A, the port No. 3, the Chan May – Lang Co port to help connect with the central key economic region. 

Thua Thien-Hue is currently home to seven industrial parks with total area of 2,700 hectares. The parks have attracted 137 local projects with total registered capital of 63 trillion VND (2.8 billion USD). Disbursed capital so far has reached 17 trillion VND (760 million USD). 

The parks are also accommodating 92 foreign direct investment projects with combined capital of 2.65 billion USD. Disbursed capital has reached 908 million USD. 

Foreign direct investment (FDI) enterprises’ total revenue in 2015 was 650 million USD, up 18 percent against the same period last year, and contributed 1.5 trillion VND (68 million USD) to the province’s budget. The projects have created 17,500 jobs for local workers. 

Thua Thien-Hue ranks 25th in the country, 4th out of five provinces in the central key economic region and sixth out of 13 provinces in the central-Central Highlands region in terms of investment attraction. 

In the first 11 months of 2016, the province has granted licences to nine new projects and the capital adjustment of two existing projects with a total capital of 23.5 million USD. 

Hoang Viet Trung, Deputy Director of the Thua Thien-Hue Department of Planning and Investment, said the province has achieved some results in attracting FDI capital but it is still below expectations. 

The province will implement solutions to attract foreign investors, focusing on prestigious investors with strong financial capability from Japan, the Republic of Korea or Singapore. 

Thua Thien-Hue plans to turn itself into a centre for the garment and textile industry in the central region, including the development of a support area of 400 hectares at the Phong Dien industrial park. The area will develop some key products with advanced technologies. 

The province’s garment and textile sector makes up from 35-38 percent of the province’s industrial value and 75 percent of export value and provides jobs to 20,000 local labourers but has to import from 80-85 percent of input materials.

VietABank offers loans to start-ups     

Viet A Commercial Joint Stock Bank (VietABank) has launched preferential loans for start-ups at a total value of VND1.5 trillion to finance members of the Viet Nam Young Entrepreneurs Association.

VietABank is the only bank supporting the Viet Nam Private Sector Forum 2016, gathering more than 500 participating firms.

Under the programme, businesses could be provided loans with a preferential interest rate of 7.5 per cent per year and a short application approval process as well as simplified procedures.

In addition, firms will receive advice on financial solutions that best suit their business to reduce the interest rate and maximise the benefit of the loan.

VietABank has become one of the pioneering banks to launch specific products for start-ups, where many face difficulty in obtaining start-up capital.

By the end of last year, the bank’s total assets reached more than VND42 trillion (US$1.86 billion), while its charter capital was VND3.5 trillion. Its pre-tax profit in 2015 was VND115 billion, increasing 92 per cent from the previous year. The bank employs some 2,000 personnel and has 87 transaction points nationwide. 

HPT programmes to help banks handle credit risks     

Information technology firm HPT Vietnam Corporation hopes to provide technological expertise and software solutions for local banks to manage credit risks and comply with required financial regulations.

During a seminar held on November 17 by HPT Vietnam Corporation (HPT), the US-based analytic software developer SAS Institute (SAS) and auditing firm Ernst and Young Vietnam (EY Vietnam), specialists, regulators and members of think-tanks in the financial-banking industry, raised concerns over the growing level of non-performing loans (NPLs) or bad debts in Viet Nam.

The local banking sector expects strong growth this year, given the high credit demand, healthy macro-economic conditions and the consolidation of banks, HPT said in a press release, adding that high NPL levels continue to loom over the country’s economy. 

The State Bank of Viet Nam has emphasised that it will strictly control the quality and pace of lending growth, especially loans for companies that have “high implicit risks,” HPT said.

“HPT is willing to enable banks to improve their risk management capability, with the help from technology expertise and risk management software solutions that HPT implements,” said Dinh Ha Duy Linh, CEO of HPT Vietnam Corporation.

Further, Eric Kong, Sales Director at SAS’ Asia Emerging Countries division, noted, "SAS technologies can adapt to the changing risk management needs of the Vietnamese market.”

Based on SAS’ solutions, banks can make the best use of the latest applications and behavioral scorecards to evaluate risks for their clients, Eric said.

They (the banks) can also “provide a basis for scoring loan applicants for virtually all lending lines, including credit cards, personal, home equity, mortgage and auto.”

It is inevitable to develop credit risk quantification models for Viet Nam’s banking-financial sector, Nguyen Thuy Duong, senior executive of EY Vietnam, said.

“EY is in a unique position to provide support to both state-owned and major joint-stock banks throughout Viet Nam in developing credit ratings and PD models, as well as analysing the gaps between current state and Basel 2 requirements.”

More than 110,000 Yamaha Nozza Grande bikes recalled     

Yamaha Viet Nam is recalling 110,250 Yamaha Nozza Grande motorbikes, produced from August 2, due to technical defects.

Earlier, some customers had complained that their motorbikes vibrated when operating at low speed. After consideration, the company submitted an announcement to the Ministry of Industry and Trade’s Viet Nam Competition Authority to launch the recall campaign to fix the fault.

Accordingly, owners of Yamaha Nozza Grande motorbikes with frame numbers from RLCSE7610GY111251 to RLCSE7620GY001001 will need to bring their motorbikes to the company’s dealers or authorised service stations to have them checked and repaired free of charge.

The campaign will last until December 3 next year. The ministry said they had been actively supervising the recall campaign to fix the problem and would update consumers and the media in the coming days.

However, it also said motorbike owners should contact the company as soon as possible to conduct the checks and replace the necessary spare parts.

Last week, the company also recalled Yamaha Acruzo-2TD1s with frame numbers from RLCSEA910FY001001 to RLCSEA910GY032650 to fix a technical problem. 

Australia levies anti-dumping duties on Vietnam aluminum

The Australian Anti-Dumping Commission has issued a temporary decision imposing antidumping duties ranging 8.5-34.2% on aluminum extrusions from Vietnam, reports the Vietnam Competition Authority.

The Commission initiated an investigation this past August following receipt of a complaint lodged by Capral Limited, a manufacturer of aluminum extrusions in Australia, alleging irreparable harm to the Australian aluminum industry caused by the dumping.

Following a finding by the Commission that the plaintiff had met its burden of proof that it is likely Vietnam has and continues to dump product and that the Australian industry is being harmed, the temporary decision was issued effective retroactively to October 19, 2016.

Adayroi to launch Korean products online in Vietnam

Online Vietnamese retailer Adayroi.com has unveiled the launch of Korean products on its Vietnam eCommerce website.

By launching its first Korean products on its shopping website on November 20 the joint venture with the Korea Trade Investment Promotion Agency is expecting to acquire 20% of the online niche market.

The stakeholders see the new online venture as competing with the full spectrum of retail services: physical stores, TV shopping and mobile shopping in Vietnam as well as other Korean online retailers tiki.vn and Lotte.vn.

More steel projects needed for sustainable development: Vietnam trade minister

Vietnam’s Minister of Industry and Trade Tran Tuan Anh has insisted that the country still needs more steel projects to maintain sustainable development, despite widespread concern over environmental issues new facilities may cause.

Speaking at a Q&A session with lawmakers in Hanoi on Tuesday, Anh said he is aware of the criticism that the ministry is “selling the environment for more steel projects,” but quickly refuted the allegation.

“There is no such thing as getting something at the expense of the environment,” the minister said. “This is about our view of sustainably developing the economy.”

Anh was referring directly to the Ca Na steel project, a development proposed for the south-central province of Ninh Thuan.

The minister stood up to defend his ministry’s support for the project, proposed by corrugated sheet-iron producer Hoa Sen Group, after one of the lawmakers, Pham Thi Minh Hien, representing Phu Yen Province, questioned if there is a ‘group interest’ in the project.

“Minister, please give voters countrywide an honest and straightforward answer for this: is there any group interest involved after the ministry has agreed to add the Ca Na project to the country’s master plan for steel industry development?” Hien questioned.

In response, minister Anh said that the ministry “never develops industrial projects at the cost of the environment” and “never exchanges the environment for new steel projects”.

“And why we are talking about group interest here?” the minister added. “We are aiming to sustainably and harmonically develop all economic sectors and ensure domestic supplies of raw materials to our industries.”

The minister then reiterated that Vietnam really needs more steel projects because “by 2020 the country will have to earmark $15 billion a year on imported steel.”

“Isn’t it a paradox if we are forced to waste money on steel imports when Vietnam has some 1.5 billion metric tons of iron ore reserves, but not enough steel plants to process it?” he asked.

Among the concerns raised over the Ca Na steel plant, besides pollution, is that it flies in the face of all regional and provincial planning.

As previously reported, the Ca Na project is not included in any prior planning by the Vietnamese steel industry, industrial and commercial planning for the north-central and central coastal regions, nor planning for the socio-economic development of Ninh Thuan by 2020.

In yesterday’s session, this prompted Hien, the Phu Yen lawmaker, to challenge the trade minister with another question; “Which of the two options is correct in Vietnam: that investment be in line with planning, or that planning be adjusted to validate any new investment?”

Anh replied that every piece of paperwork related to the Ca Na project had been done “in line with procedure.”

“The project was first approved back in 2009 but was later removed from the steel industry development plan as the then-developer was incapable of getting work started,” he explained.

“In late 2015 the Hoa Sen Group and Ninh Thuan administration proposed a restart of the project with a guarantee of environmental protection.”

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.

Better State management of fertilizers needed

Minister of Industry and Trade Tran Tuan Anh has proposed that only one ministry be authorized to manage Vietnam’s fertilizer industry on behalf of the State, as opposed to the existing arrangement of joint management between the Ministry of Industry and Trade (MoIT) and the Ministry of Agriculture and Rural Development (MARD).

After three years of the arrangement “there is an overlap in the management of fertilizers between the two ministries,” Minister Anh told the National Assembly (NA) session on November 15.

Circular No. 202 from 2013 states that MoIT will manage organic fertilizers and MARD inorganic fertilizers. “Effectiveness has not been ensured,” Minister Anh said. “Both ministries propose allowing only one to manage fertilizers on behalf of the State.”

Agreeing with the proposal, General Secretary of the Vietnam Fertilizer Association (VFA) Nguyen Hac Thuy also believes the joint management of the two ministries saw poor results, as cooperation has proven ineffective.

“There are thousands of fake fertilizer products on the market right now,” Mr. Thuy told VET on November 15. On behalf of VFA, he is proposing an amendment to draft Circular No. 202, with two scenarios for each ministry.

If the government and the NA authorize MoIT to solely manage fertilizers, Mr. Thuy insisted that Vietnam will have to amend two Laws and three Circulars.

The Law on Chemicals No. 6 from 2007, the Law on Product and Goods Quality No.51/2001, Circular No. 127, Circular No. 187, and Circular No. 199 provide the regulatory framework for MARD to manage fertilizers. If MARD was authorized to solely manage fertilizers, he believes no regulatory change is required but serious execution is needed.

The proposal to allow one ministry manage fertilizers comes as a State-owned fertilizer plant teeters on the brink of bankruptcy. The Ninh Binh Nitrogenous Fertilizer Plant, under the Vietnam National Chemical Corporation (Vinachem), is one of five unprofitable projects belonging to the State.

With investment capital of $667 million, the plant was put into operation four years ago but has recorded heavy losses due mainly to soaring production costs, slumping market prices, and high maintenance costs. Its combined losses over the last four years are estimated at almost VND2 trillion ($90 million).

Fertilizer producers in Vietnam and in China can offer lower prices, according to industry insiders, while Ninh Binh Fertilizer has been maintaining a huge stockpile of more than 50,000 tons.

Many factors are behind the failure of Ninh Binh Fertilizer, ranging from poor corporate governance to low crude oil prices and the State policy of two ministries managing the industry. Vinachem has recently appealed again to the Prime Minister and the MoIT to step in and help the fertilizer producer out of its financial difficulties. A final decision is still to be made.

Chemical fertilizers account for 90 per cent of current consumption. Agriculture products are therefore not safe, have low value, and pollute the environment.

Hanoi to spend over USD312,000 to support start-up community

Hanoi Chairman Nguyen Duc Chung has approved a VND7bn (USD312,000) Incubator for Information and Communication Technology programme for the 2016-2020 period.

The goals for the first three years are to accept at least 12 start-up companies, commercialise at least two ideas and help 70% of the start-up projects to produce marketable products.

Also in this period, it is hoped that the incubator's operators can connect with 15 big business, organisations and experts, and benefactors for capital venture funds.

The incubator programme targets individuals or groups with start-up ideas or start-up businesses that are capable of rapid growth with new ideas or technology. Most businesses are only allowed to enjoy favourable deals and support of the incubator programme for five years.

In the final quarter of 2016, infrastructure and equipment for the programme will be prepared. In the next phase, activities such as investment and trade promotion and building new ideas will be maintained. From 2020, the programme will be reviewed and a new operating model may be implemented.

The city will provide policies to help start-up projects with legal procedures, capital, media activities and connections with start-up ecosystem.

Priority to access the state budget, city's development fund, science and technology development fund will be given to the programme.

IT, biology, food and agriculture equipment are relatively active start-up sectors. However, individuals as well as companies are lacking a legal framework to protect and help them develop.

USD7.5m in tax arrears recouped from car importers

Recent report from the HCM City Customs Department show that 110 car importers had submitted wrongful tax declarations and owed over VND169.30bn (USD7.56m) in tax arrears.

The case was discovered after various inspections were carried out from January 2011 to September under the prime minister and Ministry of Finance's directives about tightening management over car imports. 

The importers failed to fulfil their tax duties including excise tax, corporate income taxes and VAT. Some of the most notable cases are Au Chau Automobile Company that owed VND82bn (USD3.67m) and Motor Image Vietnam Company which owed 55bn.

In July, the General Department of Vietnam Customs reported on pricing fraud for imported cars in the form of gifts and donations in which importers declared their commodity's value lower than market prices at customs departments in Hanoi, Hai Phong, Danang, HCM City and Ba Ria-Vung Tau Province.

The General Department of Vietnam Customs asked the departments to review suspicious cargoes.

Deputy Prime Minister Vuong Dinh Hue also ordered Ministry of Finance to investigate pricing fraud for imported cars in the form of gifts and donations in the first nine months of 2016. The ministry already reported nearly VND1trn (USD44.78m) of tax arrears owed by importers in various cities and provinces.

VCCI wants many business conditions repealed

The Vietnam Chamber of Commerce and Industry (VCCI) has proposed ripping up a range of business conditions provided in a law whose draft was recently forwarded to the National Assembly (NA).

Having consulted the business community and experts, VCCI has urged a removal of a lot of controversial business conditions added to the draft law amending and supplementing Annex 4 of the Investment Law on the list of conditional business and investment fields.

In a petition VCCI sent to the NA Economic Committee, which appraised the draft law, VCCI put an emphasis on Article 7 of the Investment Law: “Conditional business and investment fields are where business and investment activities must meet certain conditions for reasons related to national defense, national security, social safety, social ethics and community health.”

VCCI said that whenever a business or investment activity is defined as conditional, the rationale should be based on the above article. However, some conditional areas are retained or added to the draft law on the grounds that they are already contained in other legal documents which have long been in force.

Most of the conditional business and investment fields provided in the draft law are not justified in line with Article 7 of the Investment Law.

VCCI supports the removal of all such business and investment conditions to make life easy for the corporate sector which is still struggling with a lot of difficulties in reality.

A number of NA deputies and economic experts have expressed concerns over the extra business conditions in the draft law since they might have negative impact to thousands of enterprises.

This draft law was originally part of a tentative law designed to amend and supplement some articles of the enterprise and investment laws. This standalone draft law is on the table of the NA during the ongoing session of the legislature.

Rule compliance makes exporters competitive

Exporters in Vietnam can still be competitive on global markets if they strictly comply with regulations on goods safety, social responsibility and environmental protection, said Frank Juettner, general director of TUV Rheinland Vietnam.

A high level of compliance gives Vietnamese manufacturers a chance to sell their products to many retailers and compete better globally, said Juettner at a seminar on product safety and compliance issues held in HCMC on Tuesday by the HCMC chapter of the American Chamber of Commerce in Vietnam (AmCham) and the American Apparel & Footwear Association (AAFA).

Apparel and leather-footwear orders are shifting towards countries like Cambodia and Myanmar where labor costs remain low. But exporters in Vietnam can still compete by strictly observing regulations in foreign markets.

Juettner said this is because consumers and retailers there have a positive impression on Vietnamese businesses with good compliance.

However, compliance requires much effort and money. Nate Herman, senior vice president in charge of supply chain at AAFA, said enterprises should first learn about the rules, both old and new.

Certain rules have been in force for a long time but many local businesses still have a difficult time complying with them, Herman said. For example, there are regulations governing a number of restricted chemicals to make sure consumers get a product that is safe for consumers and the environment.

The U.S. Congress has recently reformed the Toxic Substance Control Act (TSCA) with which the government can keep all the chemicals imported into America in check. However, a substance must be scientifically proven harmful to users before it is put on the restricted list.

As for reporting and labeling, there are regulations adopted by California, Proposition 65, and some other states like Washington, Oregon and Vermont. Specifically, 66 chemicals if used for imported items must be reported to authorities of these states, who shall publish the reports online and start labeling.

Other major markets like Europe also have their own rules on product safety, such as REACH, a regulation on forbidden chemicals, and CMR (carcinogenic, mutagenic and reprotoxic substances), which involves the use of 300 new chemicals in clothing and footwear.

Besides the rules on food safety, the U.S., European and other markets provide rules on social compliance, with all items made by forced labor or penal labor banned from being imported. For instance, companies with products on sale in the U.K. are required to disclose information about their activities on the Internet to prevent human trafficking and forced labor in the supply chain.

Vietnam struggles to find buyers for over 1 million tons of rice

Vietnam is sitting on a stockpile of 1.2 million tons of rice, according to the Vietnam Food Association (VFA).

In addition to excessive supplies from other rivals like Thailand, Pakistan and India, the country has recorded lower rice demand from key export markets.

Data from Vietnam Customs showed that China, Vietnam’s largest buyer, imported 153,000 tons of rice for US$66.2 million in October, down 10% in volume and 12 % in value against September.

The country also saw falls in rice export volumes to other main markets such as the Philippines (91%), Hong Kong (26.3%) and Singapore (8.1%).

Rice traders say they are unlikely to reach this year’s export target with global demand falling behind supply.

China has already used up its official rice import quota for this year, while the Phillippines is unlikely to purchase any more before the year-end.

The Philippines is going to call for bids for an additional 250,000 tons of rice, but bidders will have to wait until late November to find out about deliveries scheduled for early 2017.

Other markets have yet to send any clear signals so far.

“At present, it’s impossible to foresee the picture for Vietnam’s rice exports. Apart from small contracts from China and the Philippines, the country is going through a quiet phase,” the VFA said.

Vietnam’s rice exports in the first 10 months hit 4.2 million tons, jumping by 21.2% on-year, but export value fell by 16.9% to about US$1.9 billion.

For the first time in eight years, the VFA has lowered its annual forecast for rice exports to under six million tons.

FPT Vietnam brings online math puzzle contest version to Laos

FPT University and the Ministry of Education and Sport in Laos yesterday jointly organized a launching ceremony for a math contest via internet in Laos with new version named Laolympic.

This is the first time, FPT Vietnam brings its version to other country marking a progress in the “international intellectual playground”. As per an agreement, FPT will provide, implement  and maintain the contest's system, ensuring to attract maximum 100,000 subcribers at the same time.

The two sides will liaise to instruct participants how to partake in the contest in each round. 

Similarly to Violympic, Laolympic includes two contests in maths in Laotian and English for first grade to twelfth grade students cross over the country.

Ha Noi’s Vietnamese Goods Fair      

The capital city will host Ha Noi’s Vietnamese Goods Fair 2016, which will take place at the Agriculture Trade Promotion Centre on 489 Hoang Quoc Viet Street on November 19-24, 2016.

The event will be an opportunity for businesses to promote agriculture production and trade and strength competitive ability, trademark and market expansion.

Ha Noi Industry and Trade Department director Le Hong Thang said some 150 companies with 250 stalls would showcase locally made products belonging to consumption, essential industry and support industry products, specialised products and traditional crafts.

In addition, the fair will also display food and drink products, essential goods, fashion and electronics, as well as garments, textiles and home decoration items. 

Vinalines expects gov't raise domestic carriers' market share   

Viet Nam National Shipping Lines (Vinalines) expects that the Government will increase the domestic market share of import-export goods carriage on sea routes for Vietnamese fleet.

The aim is not only to help Vinalines boost its equitisation but also domestic carriers maintain business in the country.

Sea transport is an indispensable part of the operation chain including sea ports and logistics, making a great contribution to enhancing competitiveness capacity of the maritime shipping industry as well as successfully implementing the country’s maritime strategy.

If the Government gives the nod, the domestic sea transport industry will not be dependent on foreign ship owners and Vietnamese goods owners would not have to suffer a plunge in prices when demand for transport of goods increases, especially seasonal goods such as rice, agricultural products and seafood.

According to a report from Vinalines, the industry has gone through a crisis with difficulties in three markets -- bulk carrier, container shipping and oil carrier. The recession began in 2008 and has touched its lowest level in the last 31 years. The corporation’s revenue is equal to 2.45 per cent compared with the highest level period.

In addition, the serious imbalance between demand and supply in the sea transport market, or the amount of goods carriage being reduced while the number of new ships has sharply increased, resulting in a gap of 30 per cent, has critically affected carriers.

Vinalines said the collapse of Hanjin Shipping Global in August plunged the industry into crisis and even the world’s leading shipping companies were unable to avoid losses. The CMA CGM Group, the world's third-largest shipping company from France, announced consecutive losses in the first six months of this year. Meanwhile, leading company Maersk Line reported a loss of US$107 million in the first six months of this year.

Of the 12 leading shipping companies worldwide, 11 announced losses in the third quarter of this year.

It is predicted that the industry can earn revenue of $170 billion this year, incurring a loss of $10 billion.

In such a difficult situation world over, Vinalines said its fleet was capable of undertaking goods carriage for domestic giant corporations, such as Vietnam National Textile and Garment Group, Viet Nam National Coal-Mineral Industries Holding Corporation Limited, Electricity of Viet Nam and Vietnam Oil and Gas Group. However, access to transport was very difficult because of fierce competition with foreign shipping businesses.

The majority of the domestic market share on import-export carriage has been taken over by foreign shipping businesses and the remainder of some 10-12 per cent of the Vietnamese fleet.

This is because of the long-term habit of many cargo owners, who often buy goods based on the Cost, Insurance and Freight method or sell goods using the Free on Board (FOB) method.

Therefore, Vietnamese businesses have lost goods carriage rights and have to use shipping firms nominated by international clients.

In addition, there is little support and association among Vietnamese businesses. Many firms are just concerned about exporting their goods at the earliest, not caring to support the development of domestic fleets.

During the degradation period, many foreign shipping firms quickly restructured their fleets by investing in new, modern and fuel-saving carriers. Meanwhile, domestic private businesses bought new ships with low-interest loans thanks to supporting from local banks. Therefore, in the future, when the sea transport market recovers, Vinalines will have to compete with both domestic and foreign firms on domestic and foreign routes.

To overcome difficulties, Vinalines also suggests the Government direct domestic coal importers reserve the right of renting carriers using the FOB method while negotiating contracts with its foreign partners.

In the case of bidding when there is the attendance of foreign shipping firms, domestic companies should reserve 30 per cent of import-export goods carriage for Vietnamese carriers.

U.S. – Vietnam Labor Dialogue Held in Hanoi

The 14th ‎session of the annual U.S.-Vietnam Labor Dialogue took place in Hanoi on November 15. The Department of Labor Chief of Staff for the Bureau of International Labor Affairs Thomas Richards led the U.S. delegation and held productive discussions with Vice Minister Doan Mau Diep of the Ministry of Labor, Invalids and Social Affairs (MOLISA).

The two countries discussed their long-standing cooperation on workers' rights, the successes of technical assistance projects in Vietnam funded by the U.S. Department of Labor (DOL), and potential new cooperation in the future. They also discussed steps Vietnam is taking to strengthen worker' rights and modernize the country's industrial system.  

The U.S. - Vietnam Labor Dialogue was established through a Memorandum of Understanding in 2000 between the U.S. Department of Labor and MOLISA.  The Dialogue provides a forum for the two countries to discuss labor and employment challenges and cooperative activities to address the challenges.  

In other meetings held by DOL with various labor, business, government and civil society stakeholders in Hanoi and Ho Chi Minh City, it became clear that the two countries continue to share a strong commitment to workers' rights in Vietnam.  Promoting better labor conditions remains a key component of U.S. foreign policy, including in our relationship with Vietnam, and we are committed to continuing frank and productive discussions with the Vietnamese government on these issues.  

The United States commends Vietnam for its commitment to economic and labor reforms, and we will continue to work closely with Vietnam to ensure those commitments become reality.  

Vietnam Cycle 2016 expo opens in Hanoi

The 5th Vietnam International Bicycle Exhibition opened in Hanoi on November 17.

The event features 150 booths of 50 manufacturers from the United Kingdom, France, Italia, Japan, the Republic of Korea, China and Vietnam.

Vietnam Cycle 2016 brings together many famous domestic and international brands such as Thong Nhat, Bamboo Bike, Viet Long, Giant, Galaxy and Phoenix.

Speaking at the opening ceremony, Nguyen Huu Son, Vice Chairman of the Vietnam Auto, Motorcycle and Bicycle Association, said that the event is believed to be a push to the trend of using bicycles and promoting green energy in big cities today.

It will also offer a chance for businesses to promote trade and franchise as well as seek distributors, he said. 

During the three-day expo, there will be a seminar on the development of bikes in urban transport and a BMX bike show.

US State of Oregon promotes trade with HCM City

The US State of Oregon wants to boost trade and investment relations with Vietnam and Ho Chi Minh City in particular.

Mayor of the State’s Beaverton city Denny Doyle, who is leading a delegation from the Portland Business Alliance, expressed the wish at a meeting with Chairman of the HCM City People’s Committee Nguyen Thanh Phong in the city on November 17.

He said US investors such as Nike and Columbia Sportswear recognised the city's attention and efforts to improve the investment climate, thus reinforcing trust of the two sides’ businesses in the bilateral cooperation opportunities.

The mayor confirmed that his city and the Oregon State in general are willing to support and share experience with HCM City to address problems in urban development and environmental pollution as well as improve the quality of education and life for local residents.

Chairman Nguyen Thanh Phong said HCM City is pioneering in enhancing the comprehensive partnership between Vietnam and the US.

The southern metropolis has become a popular destination for US businesses and investors, he said, pledging to create the optimal conditions for US companies, including those from the Oregon State , to make investment, particularly in the fields of their strenghs such as finance, start-up, logistics and seaport.

He proposed Beaverton support HCM City to build and manage the smart city for sustainable development.

Local authorities are also ready to connect domestic and US enterprises to carry out collaborative activities, specifically in education, trade and investment, he confirmed.

Ha Nam wants to attract foreign investment in high-tech agriculture

The northern province of Ha Nam wants to lure foreign investment in support industry and high-tech agriculture, Chairman of the provincial People’s Committee Nguyen Xuan Dong has said.

At a working session with a business delegation from Japan’s Hyogo prefecture on November 17, Dong said that Ha Nam will provide all the possible conditions for foreign investors, including those from Japan. 

The province has put aside the Dong Van III Industrial Park for Japanese businesses who invest in support industry, he said.

Those who pour cash into agricultural production will be allowed to hire land in a period of at least 20 years at a preferential price of 25,000 USD per ha per 20 years, he added. 

Tsuyoshi Oda, head of the Japanese delegation, lauded Ha Nam’s policies to attract investors and promised to introduce the province’s favourable conditions and policies to businesses in Japan and Hyogo prefecture in particular. 

He also held that Vietnam is an attractive destination for Japanese investors, especially small- and medium-sized enterprises.

RoK investors seek opportunities in Quang Ngai province

Twenty businesses from Ulsan city, the Republic of Korea, arrived in central Quang Ngai province on November 17 to explore investment opportunities.

They visited the Dung Quat Economic Zone Management Board and were briefed of local incentives and sectors calling for investment by Tran Ngoc Cang, Chairman of the Quang Ngai provincial People’s Committee. 

Quang Ngai is offering preferential treatments regarding land lease, and assistance to infrastructure cost of projects on rural farming, education, healthcare, culture and sports and the environment.

It has also pledged financial assistance to labor training; and support for trade and investment promotion, marketing and administrative procedures for investors. 

Visiting Korean businesses sought information on land rent, high-technology development policies, and opportunities for partnerships in education, vocational training, and support industries.

They also heard views from the Korean businesses currently operating in Vietnam. 

The RoK has become one of the biggest investors of Vietnam with a total investment of over 49 billion USD, according to RoK Ambassador to Vietnam Lee Hyuk in an interview with reporters from the Cong Thuong (Industry & Trade) newspaper.

Japan helps Vietnam develop large-scale infrastructure

Japan is keen on cooperating with Vietnam to develop the infrastructure system.

Japanese Minister of Economy, Trade and Industry Hiroshige Seko and Minister of Land, Infrastructure, Transport and Tourism Keiichi Ishii made the remarks at separate working sessions with Vietnamese Deputy Prime Minister Trinh Dinh Dung in Tokyo during his visit to Japan from November 15-16.

Minister Hiroshige Seko expressed his hope to strengthen coordination with Vietnam to build coal-fueled high-capacity thermal power factories and import liquefied natural gas.

Meanwhile, Minister Keiichi Ishii said Japan is willing to support Vietnam to implement the North – South high-speed railway project and hopes the Southeast Asian country will use Japanese technologies to carry out urban railway lines.

He revealed that Japanese businesses are very interested in and want to take part in the construction of Long Thanh international airport and Ben Thanh underground trade center in Ho Chi Minh City.

Deputy Prime Minister Trinh Dinh Dung proposed Japan offer more official development assistance (ODA) for Vietnam in the fields of energy, climate change adaptation, support industry, and large-scale infrastructure building, especially for key national projects such as the North-South railway, and an expressway connecting Hanoi and the Lao capital city of Vientiane.

He also recommended the Japanese side assist Vietnam in training high-quality human resources, particularly in construction and transport, while sharing experience in management and operation of high-speed and urban railway systems.

During his stay in Japan, the Deputy PM visited the human resources training center of Tokyo Metro, the largest subway company in Japan.

Currently, the company is collaborating with Hanoi and HCM City to carry out urban railway projects using Japanese technologies.

It will open training courses for Vietnamese railway staff in the coming time.

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