HCM City refunds 1.4 mln USD of VAT for foreigners

Ho Chi Minh City has refunded over 30 billion VND (1.4 million USD) of value added tax (VAT) to foreigners exiting Vietnam through the Tan Son Nhat International Airport border gate since July 1, 2012.

According to the city’s Customs Department, the sum was claimed by more than 8,000 foreigners for their goods paid at a total of nearly 390 billion VND (18.6 million USD).

A majority of the goods were eye glasses, cosmetics, clothes, footwear, watches, computers, wallets and jewellery.

However, some problems have been mentioned, including the processing time for tax refund and inadequate information printed on tax returns.

This prompted the Customs Department to ask the Ministry of Finance to standardise the processing time, define concrete responsibilities of goods sellers, and organise regular training courses for customs staff.

It has also proposed the application of a single tax refund solution across the country to make the refund processing easier.-

VAMC announces interest rate for purchased bad debts

Vietnam Asset Management Company (VAMC) will adjust annual interest rates for purchased bad debts at 10.7, 5.2 and 5.7 per cent for the Vietnamese dong, US dollar and Euro, respectively.

The interest rates will be applicable to purchased bad debts, which the VAMC had approved to adjust the rate from April 15 to June 30.

The move is a response to Circular 19/2013/TT-NHNN issued by the State Bank of Viet Nam requiring the VAMC to consider adjusting the interest rates currently applied to purchased non-performing loans to reasonable levels. The levels will be suited to the loan repayment ability of borrowers and market interest rates for every quarter and in line with agreements in credit contracts, loan acknowledgements, entrustment contracts, and corporate bond purchase contracts, as well as loan purchase and sale contracts.

The VAMC will announce the interest rate every quarter.

The VAMC reported that in the first quarter of this year, the company bought bad debts worth VND3.9 trillion ($185.7 million) – much lower than its target of VND10 trillion ($476.2 million).

The VAMC has so far purchased nearly VND43 trillion ($2.05 billion) of bad debts through its bonds. However, it has recovered more than VND300 billion ($14.3 million) worth of debts.

Imports of under-9-seat-cars soar

Vietnam imported over 5,200 completely built-up cars (CBU) with fewer than nine seats in the first quarter of this year, a year-on-year increase of 37 percent, according to the General Department of Customs.

The imported cars were worth 26.3 million USD, up nearly 80 percent due to a rise in the imports of luxury vehicles.

The report also shows that the country imported a total 10,377 units worth 188 million USD in the reviewed period, up 49.8 percent in volume and 54 percent in value.

The high import contributed 1.46 trillion VND (68.62 million USD) to the State budget.

In addition, components and spare parts of imported cars also soared 30.9 percent and were valued at 385 million USD.

An Giang introduces strength in rice production to Chinese market

The southern province of An Giang is endowed with natural advantages to boost agricultural development, focusing on cultivating rice, the locality’s key export, a provincial official revealed to Chinese businesses at a conference in Beijing on April 17.

Addressing the event, Director of the provincial Department of Industry and Trade (DIT) Mai Thi Anh Tuyet stressed her province leads localities in the Mekong Delta in terms of rice production with an annual yield of 4 milion tonnes.

An Giang always attaches importance to applying advanced techniques in rice production, which helps improve the quality of the grain, said Tuyet, adding that the province annually exports over 600,000 tonnes of rice to more than 70 countries and territories around the world, mainly Asian and European markets. It is eyeing on the American market.

At the conference, Zong Danfei, Vice President and General Secretary of the China National Association of Grain Sector (CAGS) briefed Vietnamese guests of his country’s rice import and export, noting that China imported a combined volume of 3.914 million tonnes of rice between 2011 and 2013.

Other Chinese representatives asserted that the conference is a good opportunity for An Giang’s rice processing enterprises and exporters to learn about the Beijing market and the Chinese market at large.

Earlier, the delegation from the DIT held talks with representatives from the Rice Branch of the CAGS.

At the function, CAGS Vice President and President of the branch Shi Jianwei said although the quality of Vietnam’s rice has been improved, Vietnamese businesses need to pay more attention to the selection of rice varieties and limit the use of chemical fertilisers to ensure food safety and hygiene, issues which draw much concern among Chinese consumers.-

Tien Giang, Guangdong expect more joint activities

Top officials of the southern province of Tien Giang and the Chinese province of Guangdong updated each other on their local socio-economic potential at a meeting in the Vietnamese province on April 17.

Secretary of Tien Giang provincial Party Committee Tran The Ngoc informed his guest that the locality is situated in a key southern economic zone which is calling for investment in order to facilitate trade.

Tien Giang is well on road to renewal and integration, he said.

Ngoc and his counterpart Hu Chunhua said they pin high hopes on bilateral economic - trade cooperation.

They expressed their expectation that Hu’s visit will create momentum for future coordination between the two localities.

Toyota expands its recall campaign

Toyota Viet Nam (TMV) on Monday expanded its recall campaign to include the Hilux pickup truck due to similar airbag technical failure for which Fortuner and Innova were recently recalled.

The recall, which is applicable to 265 Hilux units produced between 1st Sept 2009 and 8th Dec 2009, followed last week's recall of 42,772 units of Innova and Fortuner for checking and replacing the spiral cable of the driver's airbag.

The malfunctioning spiral cable may prevent the airbag from opening up in the event of a crash.

Last Thursday , the Japanese car manufacturer announced that it was planning to recall 40,241 Innova units produced between Jan 7, 2006 and Jan 19, 2010, and 2,531 Fortuner units produced between Feb 1, 2009 and Jan 19, 2010.

The move follows a global recall of vehicles, due to faulty airbags, by Toyota Motor Corporation (TMC) that affected 3.5 million vehicles produced in North America, Europe, Australia, and Japan. Vehicles manufactured in Africa, Middle East, and Asia were also recalled.

Under detailed guidelines issued by the TMC, the TMV will check and replace the spiral cable of the driver's airbag free of cost.

Savills to hold property show

Savills Viet Nam and some real estate developers will jointly organise an HCM City property exhibition at Ha Noi Tower in the capital on Saturday.

The real estate partners are Phu My Hung, VinaCapital, Capital Land, City Garden and Nam Long.

The projects, which will be introduced, include Chateau Palace Villas, Star Hill, Green Valley, Dai Phuoc Lotus, My Gia Urban, The Vista An Phu, City Garden and The Bridgeview Ehome 5.

VNA offers more discounts

The national carrier Vietnam Airlines (VNA) has launched its promotional programme called "Golden Moments" for the ninth time on some domestic routes.

Accordingly, from April 15 to 29, travellers can buy cheap one-way flight tickets from HCM City to Buon Ma Thuot City for VND499,000 (US$23.7); from HCM City to Da Lat for VND599,000 ($28.5); from HCM City to Vinh City for VND999,000 ($47.5); and from Ha Noi to Da Lat City for VND999,000 ($47.5).

Travellers can fly with this promotion between April 15 to May 19.

Japanese investors inspect delta

Executives from 40 leading Japanese enterprises will visit the Cuu Long (Mekong) Delta and seek investment opportunities in agroforestry and fisheries production and processing from April 21 to 23.

This was revealed at a working session between the Steering Committee for the Southwestern Region and regional authorities in Can Tho on April 15.

Nguyen Phong Quang, deputy head of the steering committee, said the visit is a good opportunity for localities to introduce their potential and incentives to lure Japanese investors to the region, which has so far recorded the lowest foreign direct investment in the country.

Dung Quat celebrates 600 days

The Dung Quat Oil Refinery, the first of its kind in Viet Nam, has been operating smoothly and safely for 600 days and nights.

A ceremony was held on Tuesday in the central province of Quang Ngai, where the plant is located, to mark the achievements of the refinery.

Since it became operational in 2009, the plant has sold 26.7 million tonnes of products, earning VND543 trillion, or US$25.5 billion, in revenue, and contributing VND86 trillion, or $4.03 billion, to the State budget. In the first three months of 2014, it marketed nearly 1.7 million tonnes of products, gaining over VND37 trillion, or $1.7 billion.

It contributed over VND7 trillion ($333 million), to the State budget.

Customs goes electronic

Binh Duong Customs has launched the Japanese-funded electronic customs system known as Viet Nam Automated Cargo and Port Consolidated System and the Viet Nam Customs Information System (VNACCS/VCIS).

According to the Binh Duong online newspaper, the system is based on Japan's NACCS/CIS, which has been modified to be made compatible with Vietnamese requirements.

The VNACCS/VCIS is part of the non-refundable customs modernisation project to build and launch an e-customs programme and a national one-door customs mechanism.

Land rentals likely to rise

The Finance Ministry has proposed increasing land rental rates as part of a draft decree on land rental, water surface rental and land use fees that will likely be submitted to the Prime Minister next month.

The land rental rate currently ranges from 0.25 to two per cent of the land price, depending on what the land is used for and any investor incentives that the province or city offers.

However, under the proposal, the rent would start at one per cent of the land price. Rates in urban areas, commercial or transport hubs and crowded residential areas could reach three per cent of land prices.

At a meeting in the capital on Monday, representatives from Ha Noi and northern Bac Ninh Province's finance departments said that the increased rent would burden enterprises, especially during the current economic slowdown.

At a similar meeting in HCM City last month, representatives from the southern provinces of Long An and Khanh Hoa said increasing rent could raise land prices.

The minimum rent increased from 0.25 per cent in 2005 to 0.75 per cent in 2010, and the land price went up 10-15 times as a result, they pointed out.

Chairman of HCM City Real Estate Association Le Hoang Chau said that land prices in the city were so high that they depressed investors.

"To get land for operations, investors mostly pay compensation based on market prices, which are much higher than those imposed by local authorities. They also have to pay land rental based on future land prices, meaning they pay twice for the same land plot," he said.

Deputy director of the HCM City Finance Department Ta Quang Vinh suggested that rental rates be based on what the land was used for.

It should also be made clear when the land rental rate was based on the land price frame and when it was lowered by the provincial People's Committee as an incentive, he added.

Stagnant production likely to push CPI down further

The consumer price index (CPI) in April may dip further on the back of low purchasing power, noted the Price Management Department under the Ministry of Finance.

However, the decline will happen at a slower pace as compared to that in March.

The department has forecast that certain price pressures were in a state of stagnation. Epidemics that have affected livestock and poultry, for instance, are not under control in the central region, highland, and southern provinces. Agribusiness and production are therefore still stagnant.

The prices of some essentials and utility services are expected to stay unchanged or decrease. The prices of diesel, mazut, oil, and gas have already been lowered in the end of March and early April.

The country's CPI in March dropped 0.44 per cent against the previous month, the lowest level recorded during the past decade. The prices of food commodities and products posted the steepest fall of 0.96 per cent this month. Housing and construction materials, including rent, electricity, water, fuel, and construction supplies ranked second with a decline of 0.74 per cent.

The CPI's slide during March was attributed to a sharp decline in consumption demand after the country's most important holiday of the Lunar New Year in February. The key reasons for the decline were decreased spending by the local consumers due to economic difficulties and stagnant production. However, the CPI in March still rose 0.8 per cent over December 2013.

HCM City hopes to lure China investors

HCM City regards China as one of its most important trade partners and is ready to provide advantageous conditions to attract investors and traders from that country, city authorities have said.

Speaking at a forum meant to boost economic co-operation between HCM City and Zhongshan and Chaozhou cities in Guangdong Province in the city yesterday, deputy chairman of the People's Committee, Le Manh Ha, said that city has been at the forefront in strengthening ties with China, especially Guangdong.

Since 2009 the city and Guangdong have organised many events related to different sectors ranging from culture to economy, he said, adding that the city welcomes Chinese companies seeking to do business.

Vo Tan Thanh, director of the Viet Nam Chamber of Commerce and Industry's HCM City office, said trade between HCM City and China was worth over US$8.3 billion last year.

The city's exports accounted for more than $2.6 billion, a year-on-year decline of 17 per cent. Its imports rose by 19 per cent.

Executives from more than 30 companies from Zhongshan and Chaozhou attended the forum. Their firms are mostly in strongly developing sectors like gas stove manufacture, chemicals, decorative lights, wooden furniture, pottery, and steel.

They were apprised about the city's potential and investment opportunities and met local entrepreneurs.

The Chinese cities did the same and promised all support to Vietnamese companies investing there.

Several contracts were signed between companies from the two countries.

Guangdong is now an important economic partner for Viet Nam. Last year trade between them was worth more than $8.8 billion, a 43 per cent rise year-on-year.

MICs should play greater role in global partnership: Vietnam

Middle-income countries (MICs) should play a greater role in the global partnership by sharing their development experience, Deputy Minister of Planning and Investment Nguyen Chi Dung has said.

He made the remark at a discussion of the first high-level meeting of the Global Partnership for Effective Development in Mexico on April 16.

The official further said that Vietnam agrees on the meeting’s communiqué which calls on development partners to base their assistance for MICs on their development stage instead of their income level.

Vietnam’s economy generates some 154 billion USD every year with an annual trade growth rate of over 20 percent while per capita income stands at 1,700 USD a year, he added.

Dung said the country is now facing issues arising during the transition from low- to middle-income status, for example those relating to infrastructure, competitiveness, workforce quality, income gap and climate change. He added that Vietnam will be caught stuck in the middle-income trap if it cannot overcome these challenges.

The official noted the country aims to raise the gross domestic product per capita income to 3,000 USD by 2020. To that end, the Vietnamese Government focuses on completing the market mechanism, building a comprehensive and modern infrastructure, developing human resources and restructuring the economy.

Within the meeting’s framework, the Deputy Minister attended bilateral meetings, plenary sessions and discussions.

AEC – key to bridging Vietnam’s trade deficit

Vietnam will have a better chance to boost exports and reduce trade deficit if it makes full use of preferential tariffs by 2015, when the ASEAN Economic Community (AEC) is formed.

Nguyen Thanh Hai, Deputy Head of the Import-Export Department under the Ministry of Industry and Trade (MoIT), made the statement at an export forum in Hanoi on April 17.

 Vietnam imports tens of billions of US dollars worth of goods annually, mostly machinery, equipment and consumer products, for domestic production. MoIT statistics show that the country’s import value hit US$113.79 billion in 2012 and increased to US$132.12 billion in 2013.

Vietnam always runs a huge trade deficit with China, with import surplus from the market rising from just US$210 million in 2001 to a staggering US$23.8 billion in 2013.

Boosting exports to big economies such as the US, EU and ASEAN, is the key to reducing trade deficit.

Pham Thi Hong Thanh, Deputy Head of the MoIT’s Asia-Pacific Department, said bilateral trade ties between Vietnam and other ASEAN countries increased 4.5 fold from US$8.9 billion in 2003 to US$40 billion in 2013.

She forecast that exports to these markets will continue to grow steadily as more than 99% of tax lines of six ASEAN countries – Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand – will be slashed to zero in 2015 under the ASEAN Trade in Goods Agreement (ATIGA) signed in Thailand in 2009.

This will provide plenty of opportunity for Vietnam to balance trade, Thanh added.

She also pointed out challenges for Vietnamese products in the context of fierce competition, especially when barriers to protect domestic products no longer exist.

Thanh suggested domestic businesses should accelerate exports of key products to ASEAN, such as mobile phone handsets and components, computers, electronics and components, means of transport, tools, machinery, equipment, steel and rice in the short term. They should also devise long-term business strategies to take full advantage of incentives post 2015.

MoIT Deputy Minister Do Thang Hai said ASEAN is one of Vietnam’s leading trade partners, accounting for 15% of the country’s total trade. The regional grouping made up 22.4% of total foreign direct investment (FDI) capital in 2013 with Singapore, Malaysia and Thailand being key investors.

AEC and free trade agreements (FTAs) have helped promote Vietnam’s exports to ASEAN, Hai stressed.

Tan Nam Bridge, which connects border areas of Vietnam and Cambodia in the southern province of Tay Ninh, will open to traffic in July, helping facilitate the travel of people and goods.

Chairwoman of the Tay Ninh provincial People’s Committee Nguyen Thi Thu Thuy revealed the opening date during her April 17 reception for the visiting Governor of Cambodia’s Prey Veng province, Has Saren.

Construction on the bridge, connecting Tay Ninh with Cambodia’s Prey Veng and Kampong Cham provinces, began on March last year with a total investment of VND44.3 billion (US$2 million) sourced from the Vietnamese locality’s budget.

The whole project includes the bridge - 67 metres long and 8 metres wide - and a 1.5 kilometre section of road connecting the border belt.

Once operational, the bridge is expected to encourage cross-border trade between people along the border, contributing to the region’s economic development and cultural growth, as well as maintaining security and defence in the area.

At the meeting, the two sides’ leaders also agreed to propose to their governments about upgrading the Tan Nam-Mon Chey auxiliary border gate to international level in the future.

Vietnam, Brazil eye US$12 billion trade by 2020

Vietnam and Brazil have great potential for increasing bilateral trade to US$3 billion in 2014 and more than US$12 billion by 2020, according to the Vietnam Trade Office in Brazil.

With an annual GDP per capita of over US$11,000, Brazil’s purchasing power has increased considerably, requiring the country to boost imports to feed production and consumption.

Statistics show Brazil imports approximately US$240 billion worth of goods every year, with its annual import growth rising to 7%. Imported equipment and household utensils make up 20% of the country’s total products in circulation.

However, the Trade Office said Brazilian businesses lack in information about Vietnam’s market and economic potential.

To fully tap into this South American market, the Trade Office suggested Vietnamese businesses increase trade promotion, seize opportunity and expand export outlets.

Two-way trade turnover between Vietnam and Brazil reached US$749.2 million in the first quarter of this year, up 77.7% from the previous year.

Vietnam earned US$328.5 million from exports to Brazil, up 58.6%, while spending US$420.5 million on Brazilian goods, showing an annual increase of 96.2%.

Key exports to Brazil include mobile phones and spare parts, seafood, computers and electronics, garments, and bags, suitcases, hats and umbrellas.

Its key imports are maize, footwear and garment accessories, animal food and other raw materials.

Businesses urged to grasp benefits from ASEAN Economic Community

Domestic businesses have been told to promptly recognise the expected benefits brought by the ASEAN Economic Community (AEC) in 2015 and beyond so that they can connect with other countries from the bloc and the wider region.

Participants made the suggestion at a forum in Hanoi on April 17, discussing ways to step up exports and integration in the AEC.

Deputy Minister of Industry and Trade (MIT) Do Thang Hai said the trade turnover between Vietnam and ASEAN has quadrupled over the past decade, climbing to nearly 40 billion USD in 2013 from 9 billion USD in 2003.

Last year, Vietnam raked in 18.47 billion USD from its exports to the bloc, the country’s third largest importer only after the US and the EU, an increase of 4.4 percent from the previous year, added Hai.

The export turnover was estimated at 4.7 billion USD in the first quarter of this year, a year-on-year increase of 6.4 percent. However, the figure has tended to remain steady, and even slowed down on occasion, as domestic enterprises have not yet taken full advantage of the close geographical distance and incentives offered by the ASEAN Trade in Goods Agreement (ATIGA).

Tran Thanh Hai, Deputy Director of the MIT Import-Export Department, said local firms need to raise the competitiveness of their exports through quality improvement, especially by following regulations related to origin certification (OC) of products, if they want to fully utilise the opportunities the AEC will provide.

He proposed that domestic businesses should set up their development strategies to enlarge the production scale to meet larger orders in the near future.

They also need to specify the contents of the strategies and measures to further boost their exports to the ASEAN market, participants suggested.

Vietnamese, Chinese businesses seek cooperation

Vietnamese and Chinese businesses gathered at a seminar in Hanoi on April 17 to exchange information and seek cooperation opportunities.

As part of the Vietnam-China Business Forum 2014, the conference will help the two countries’ businesses form initial orientations for their future investment plans, said Pham Quang Thinh, deputy head of the International Relations Department under the Vietnam Chamber of Commerce and Industry.

A Chinese representative said his country’s businesses are always encouraged to invest in Vietnam.

He expressed his hope that via collaborations set up during the event, the multi-faceted cooperation between Vietnam and China will further develop in the time to come.

China has been Vietnam’s leading trade and investment partner over many years, with two-way trade reaching 50.2 billion USD last year and 7.77 billion USD in the first two months of this year.

By the end of February, China had 998 projects in Vietnam with a total investment of 7 billion USD, of which 3 billion USD had been disbursed.

Work starts on Tuy Phong IZ

The construction of the Tuy Phong Industrial Zone was kicked off in the central province of Binh Thuan on Saturday.

The zone, spread over 150ha in the Vinh Hao Commune, Tuy Phong District, has been funded by the Tan Dai Tien Company at a cost of VND370 billion, or US$17.6 million.

It aims to have facilities for salt production, chemical production and logistics industries for the local farming, forest and seafood sectors.

According to the investor, the industrial zone is located next to the National Highway 1A, the Vinh Hao railway station and the Vinh Tan port which is expected to become operational in late 2014. The zone is also 100km from the Cam Ranh Airport in the neighbouring province. The zone will also be benefit from the lower land rent and labour cost in the area.

The industrial zone's investor plans to complete the project by 2017.

Standard Chartered inks coffee deal

Standard Chartered Bank Viet Nam has signed an agreement for a US$22 million structured trade finance facility with Tin Nghia Corporation to fund the expansion of one of Viet Nam's leading coffee exporters.

Quach Van Duc, general director of Tin Nghia, said: "Tin Nghia Corporation has continuously grown for many years and secured a place among Viet Nam's top three coffee exporters.

"Now, with the support of Standard Chartered coupled with our almost 20 years' experience in the coffee export sector, we are confident that we will be able to continue adding value to Viet Nam's coffee industry and bring more benefits to local coffee growers."

Nirukt Sapru, general director of Standard Chartered Bank (Viet Nam), said: "Coffee is an important livelihood of a large community in Viet Nam and also one of the main export engines of the country. By building the strategic relationship with Tin Nghia, we hope to contribute to the sustainable development of the country."

US firm opens new feed plant

American Feeds Co., an affiliate of Gold Coin Group, has inaugurated its second animal feed plant in the northern province of Hai Duong.

With an investment of VND260 billion (US$12.4 million), the new plant will provide 300,000 tonnes of animal feed each year, in order to meet the demands of the northern and central regions.

Ha Noi to host support industry meet

The 9th Viet Nam Support Industry Forum will kick off in the capital on May 8 promoting the development of businesses supplying parts and components to the manufacturing sector.

Co-organised by Thailand's Reed Tradex Co. and the Ha Noi Trade Promotion Centre, the event will offer a platform for leading government and industry experts to give their insights on the subject as well as share their practical experiences related to the industry.

Vietnam textile and garment exports soar in Q1

A positive forecast for the garment and textile industry has gradually become a reality. In the first three months of this year, the industry recorded impressive growths in terms of production and exports, creating good impetus for the next quarter, according to the Vietnam Economic News.

In the first quarter of this year, the garment and textile industry ranked second in total export turnover with 4.5 billion USD, an increase of 21.9 percent compared to the same period last year. Exports to foreign markets recorded a fairly good growth.

According to Deputy General Director of the Vietnam National Textile and Garment Group (Vinatex) Pham Duy Hanh, traditional markets for Vietnam’s textile and garment industry posted high growths. The EU market ranked first in growth with an increase of 34 percent compared to the same period last year, followed by the Republic of Korea with an increase of 26 percent, Japan with an increase of 14 percent and the US with an increase of 13 percent compared to the same period last year.

A strong growth in exports of Vietnam’s garment and textile industry in the first quarter was forecasted at the beginning of this year when orders created a breakthrough. Many businesses signed contracts to the end of the third quarter, even to the end of this year. Businesses have operated at maximum production capacity. Binh Minh Garment Joint Stock Company (Bigamex) General Director Ngo Kim Quy said that the company had signed contracts to the end of the second quarter of this year.

In the first quarter of this year, fiber export turnover also increased 18.7 percent compared to the same period last year, reaching 540 million USD thanks to an increase in supply of domestic raw materials. Some projects were put into operation in 2013 such as the Phu Bai 2 Fiber Plant, Vinatex-Hong Linh Fiber Plant and Phu An Fiber Plant.

Pham Duy Hanh also said that in the first quarter of this year, Vinatex deployed 29 projects, including 6 fiber, 7 textile and 11 garment projects, 1 project on the construction of infrastructure, 3 projects on the construction of plant and 1 project on the development of cotton materials.

Vinatex Investment Joint Stock Company and two China’s firms Foshan Sanshui Jialida and Luenthai cooperated with Nam Dinh province to establish the Rang Dong Industrial Park. The project aims to develop garment and textile supply chain. The project is expected to cover an area of 1,400-1,500 hectares and will create about 200,000-300,000 jobs. The project is described as one of the country’s largest garment and textile centres.

The Deputy General Director of Vinatex Pham Duy Hanh also predicted that Vinatex would continue its good business performances in the second quarter of this yea.-

BIDV-funded social facilities built on Ly Son Island

The Bank for Investment and Development of Vietnam (BIDV)’s branch in central Quang Ngai province handed several new social facilities to Ly Son island district on April 15, aiming to reduce difficulties facing local people.

A total sum of 11 billion VND (517,000 USD) was spent on the new facilities, including six classrooms in the An Hai Secondary School, four kindergarten classrooms and the 1.7 billion VND (79,900 USD) Ly Son health centre.

The bank also funded the construction of 20 houses worth 50 million VND (2,350 USD) each for the poor in the locality.

Last year, the BIDV donated nearly 500 billion VND (23.5 million USD) to national target programmes, focusing on the healthcare, education, the upgrade of temporary houses, and emergency relief aid to compatriots affected by natural disasters. It also presented 70,000 Tet (Lunar New Year) gifts to poor people, totally valued at 22 billion VND (1.034 million USD).-

Key ODA transport projects to receive reciprocal capital

Seven urgent transport projects funded by official development assistance will receive capital injections totalling 2-2.5 trillion VND (95-119 million USD) in 2014’s first round of advancing reciprocal capital for projects, probably soon after April 30, the Vietnam Investment Review (VIR) reported on April 15.

The decision has made at a recent meeting among the misnitries of transport and finance, the State Bank of Vietnam and Government Office.

These seven projects include a road linking Noi Bai international airport to Nhat Tan port in Hanoi, the Da Nang-Quang Ngai expressway, the Ben Luc-Long Thanh expressway, Hanoi’s urban railway section from Cat Linh to Ha Dong, Mekong Delta transport infrastructure development (WB5), upgrading the northern sub-Mekong region transport network (national highway 217) and the Lo Te-Rach Soi highway (Delta region).

“This list is temporary as they will only see capital injections once developers show that they have finalised disbursement of 70 percent of this year’s reciprocal capital before April 30 and have land acquisition plans approved by local governments,” said Deputy Head of the Ministry of Planning and Investment (MPI)’s Infrastructure Department Tran Duc Toan.

Of these above listed projects, two highways developed by the Vietnam Expressway Corporation (VEC) are reportedly in position 15 days ahead of the deadline.

“We will disburse nearly 900 billion VND (42.8 million USD) in reciprocal capital to the Da Nang-Quang Ngai and Ben Luc-Long Thanh expressway projects no later than mid-April,” said VEC General Director Mai Tuan Anh.

According to sources, additional reciprocal capital demands for the two projects are somewhere in the area of 2.3 trillion VND (110 million USD) this year, with 1.5 trillion VND (71.4 million USD) needed just by the latter. Construction of the Ben Luc-Long Thanh expressway is slated to kick off in June.

According to the Government Office, the National Assembly has approved only 8 trillion VND (381 million USD) in reciprocal capital for the whole country for implementing ODA projects this year.

The transport sector is likely to be the biggest recipient with an expected 35 percent of the approved figure.

In a document sent to the Prime Minister this March, the MoT proposed an additional allocation of 8.2 trillion VND (392 million USD) in reciprocal capital for ODA projects this year.

This figure did not include 2.5 trillion VND (121 million USD) to be sourced from government bonds, already ratified by the Prime Minister earlier this year.

“To achieve the full reciprocal capital demand for this year, ODA projects would have to disburse 35 trillion VND (1.66 billion USD) to complete 245km of highways, 12km of key urban roads, upgrade 167km of highway, complete the construction of the T2 terminal at Noi Bai Airport, and more,” said the head of MoT’s Planning and Investment Department Nguyen Hoang.

Concerning ODA transport projects, the role of reciprocal capital is essential as it links with compensation and land acquisition, decisive factors in construction and general disbursement.

“Key transport projects have a huge demand for reciprocal capital this year and a slow disbursement pace could make their targets unrealisable,” said Toan from the MPI.

Phu Yen seamen gain big tuna catch

Fishermen in central Phu Yen province are enjoying a productive spell, with 70 percent of tuna fishing boats bringing back 1.5-3 tonnes of ocean tuna each voyage.

According to Captain Nguyen Ngoc Ry from the Tuy Hoa border post, more than 80 trawlers of fishermen living in Ward 6 and Phu Dong Ward have anchored and enjoyed higher yields of the fish than that on the first days of this year.

Phan Thuan, chairman of the Ward 6’s Fishing Union, said 70 percent of tuna fishing vessels made profits of 70-80 million VND (3,290-3,760 USD) from each offshore fishing voyage.

Although the price of tuna dropped to 135,000 VND (6.34 USD) per kilogram from 170,000 VND (7.99 USD), local fishermen still made a profit thanks to their additional catches of other fishes to make up costs for the fishing voyages, which normally last for 20-25 days.

According to the provincial Department of Agriculture and Rural Development, Phu Yen’s catch of ocean tuna has reached 1,900 tonnes since the beginning of the fishing crop.-

Hai Duong attracts 320 million USD of foreign investment

The northern province of Hai Duong has so far this year granted licences to nine foreign investment projects with a combined capital of 248 million USD, and allowed six on-going ones to add 71.4 million USD to their capital.

Nguyen Danh Tu, an official from the provincial Department of Planning and Investment, further said this marks an increase of 116 percent over the figure the same period last year.

The new projects are mainly in producing moulds, electronic components, garment and health care, with the 225-million-USD Vietnam - Canada international hospital being the most noteworthy.

Hai Duong aims to attract another 450 million USD of foreign investment from now to the end of this year, with 300 million from new projects and 150 million from existing ones.

To this end, the province will accelerate its investment promotion with major groups and trans-national corporations, along with removing red tape.

Currently Hai Duong counts 264 foreign investment projects from 23 countries and territories with a combined capital of over 6.15 billion USD. The projects provide jobs for more than 130,000 workers and thousands of labourers.-

Legislature’s role in FTA negotiations considered

A close connection with National Assembly deputies and businesses will efficiently help negotiators make progress in the country’s future Free Trade Agreements (FTAs), a conference in Hanoi has heard.

The discussion, exploring in depth the law-making body’s role in negotiating, ratifying and implementing FTAs, was jointly organised on April 15 by the National Assembly’s Committee for External Relations and the US Agency for International Development (USAID).

Participants voiced that as the highest-level people-elected agency, the National Assembly needs to promptly reflect opinions and aspirations of parties involved in various stages of FTA negotiations and enactment.

Chairman of the NA’s Committee for External Relations Tran Van Hang reported that Vietnam has so far signed eight FTAs, mainly with its partners in ASEAN, the EU, and China. It is working on different bilateral and regional FTAs.

During the event, the participants, including economic experts, made forecasts on the factual impacts of FTAs on Vietnam’s economy, while identifying major bottlenecks during the negotiating and implementing process of FTAs.

They raised legal issues that need to be revised for the country to sharpen its competitiveness in the global trade.

Ben Luc-Long Thanh expressway set to break ground in May

Work will start on the 57-km Ben Luc-Long Thanh expressway section linking the southeastern and southwestern regions next month as scheduled in a recent plan of the Ministry of Transport.

The section, the last component of an expressway connecting Long An, HCMC, Dong Nai and Ba Ria-Vung Tau, will allow vehicles to travel at a maximum speed of 120 km per hour and have up to eight lanes.

Given the soft foundation along the expressway section, half of the route will be elevated. Besides, two large bridges will be built on the expressway. Binh Khanh Bridge will stretch over 3.7 km across Soai Rap River and Phuoc Khanh Bridge across Long Tau River.

Total investment of the expressway section amounts to some VND31.3 trillion, financed by Japanese official development assistance and Asian Development Bank loans, and the state budget.

Due to rising wages and construction material prices, the total cost might be adjusted up by an additional VND10 trillion compared to the amount approved earlier, Vietnam Expressway Corporation (VEC) said.

Therefore, to keep the already-approved cost unchanged, the Ministry of Transport has adjusted the expressway’s design along with other parts, resulting in a cost reduction of around VND8.5 trillion.

After completion, the Ben Luc-Long Thanh expressway will connect southeastern and southwestern provinces and create a direct route leading to Hiep Phuoc and Cai Mep-Thi Vai ports and the planned Long Thanh International Airport in Dong Nai Province.

Also in the second quarter of this year, the ministry plans to start construction of 15 projects and complete 20 other schemes.

30 km of Noi Bai-Lao Cai expressway opened to traffic

In a related development, VEC has opened to traffic an extra 30 km of the Noi Bai-Lao Cai expressway going through Vinh Phuc and Phu Tho provinces, thus shortening the distance between Noi Bai and the Hung Kings Temple in Phu Tho to over 30 minutes instead of two hours before the section was put into use.

As such, nearly 110 km of the 245-km expressway has been finished and put into use temporarily. The entire expressway is set for completion in June this year.

Maritime Bank-MDB merger in the offing

The local banking sector is looking to yet another merger – this time between Vietnam Maritime Bank and Mekong Development Bank (MDB).

The merger deal has obtained approval from relevant authorities and is expected to be done in July, said an industry source.

The board of directors of Maritime Bank will be presenting the merger plan at the bank’s annual general meeting on April 19 in Hanoi City. If the scheme wins approval from shareholders, the board will be assigned to map out a merger project and contract, a charter for the new bank and a share issue plan for share swaps and other documents as requested by administering agencies.

Maritime Bank has total chartered capital of VND8 trillion and MDB over VND3.7 trillion.

Industry insiders described the forthcoming merger between Maritime Bank and MDB as appropriate since they share some major shareholders and by end-2013 had had similar bad debt ratios, with Maritime Bank at 2.71% and MDB at 2.65%.

According to a report by the board of directors, Maritime Bank has total assets of VND107 trillion and over 3,500 staff. Last year saw it obtaining nearly VND335 billion in after-tax profit and having total retained earnings of nearly VND284 billion.

Meanwhile, MDB has total assets of over VND6.4 trillion and nearly 1,100 staff. Last year, its profit after tax totaled VND63.4 billion.

Prudential Vietnam reports 10% income rise in 2013

Life insurer Prudential Vietnam on April 10 announced 2013’s business results with total income of around VND11 trillion, up 10% versus the previous year.

The total premium income reached over VND7.6 trillion, up 16%, and new business sales hit nearly VND1.8 trillion, a 21% improvement. Its retained profit at the end of last year was VND2.6 trillion.

As of the end of 2013, Prudential had paid cumulative insurance benefits totaling VND15.7 trillion to around 1.7 million cases. Its total assets reached VND37.8 trillion, an increase of 15% from late 2012.

In 2014, Prudential aims to improve the quality of its products and services to celebrate 15 years of its Vietnam operations.

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