Foreign investors refind confidence

Although Vietnam’s real estate market has experienced a slowdown over recent years, the overall sentiment among international investors seems to have recovered.

Israeli billionaire Igal Ahouvi recently kicked off his first project in Vietnam, a $300 million resort in central province Khanh Hoa after several visits to Vietnam.

According to Mauro Gasparotti, executive director of real estate consultancy firm Alternaty Vietnam, there is a growing interest specifically towards Vietnam especially within the commercial sector and for income producing properties.

“There are tangibles signs of increased confidence among international investors regarding the real estate market in Vietnam,” Gasparotti noted.

A large number of investment funds and private companies were searching for deals over the past few years with limited results due to discrepancies on land value and achievable returns on investments. Investor interest dried up in 2012 and the first half of 2013 when the financial situation was unstable and the future outlook seemed bleak. Investors were increasingly focused on alternative investment destinations such as Myanmar and Indonesia, he added.

However, Gasparotti noted that over the past few months, as the financial situation seems to have stabilised with inflation brought under control, interest from these groups has returned because Vietnam offers more value oriented opportunities. At the same time, the opportunities in competing markets in South East Asia seem to be diminishing.

According to Rudolf Hever, another executive director of Alternaty, there were fundamental changes and game changing trends occurring right now in the region.

“Those who will prosper over the next decade will be the ones who recognise and embrace the opportunities that are emerging,” Hever noted.

The rapid rise of the middle class in Asia is only just beginning and is led by China. This will continue into the foreseeable future with countries such as Indonesia and Vietnam.

“This segment will have a strong appetite to travel abroad, and their target destinations, one of which is clearly Vietnam, will surely feel their impact, ready or not. One only needs to look at markets such as Phuket and Pattaya, to understand the vast scale and power of this new demographic,” he added.

Vietnam is now well placed to capitalise on these new trends and we are seeing more and more investors that are anticipating and looking to capture the opportunities that are emerging.

A few problems remain to be solved, such as bad debts, but Vietnam is in much better shape than just a couple of years ago. Inflation is down, economic growth is stable and slowly ticking upwards, FDI is up, interest rates have come a long way down and the dong has remained remarkably stable over the past couple of years.

“The local developers and land owners have been through tough times, but they are now finding increasing reasons for optimism,” he added.

MARD to source foreign partners for agriculture

Vietnam has decided to boost international co-operation to develop the agricultural sector as part of plans to guarantee national food security, create jobs and raise living standards.

According to a draft agriculture sector development strategy till 2030 compiled by the Ministry of Agriculture and Rural Development (MARD), international co-operation is considered a key solution in developing the agriculture sector, particularly co-operation on human resources training and science and technology development.

The MARD will also draw up a strategy to attract and use official development assistance in prioritised areas, creating favourable conditions for foreign direct investment (FDI) in the sector.

Vietnam will accordingly prioritise the development of ten projects by 2020, including developing vegetable and flower cultivation, as well as focusing on the cultivation of corn, cassava, tea, rice for export, sugarcane, fruit, mushrooms, cashew nuts and coffee beans.

In order to boost production, producers will be incentivised by a number of tax cuts. The farm land use tax is one in line for reduction, while the Vietnamese government also hopes to amend legal regulations to give enterprises and farmers easy access to bank loans.

Under the new strategy, during 2014-2020, the agricultural sector hopes to achieve annual growth of 2.5 per cent in production, $22 billion in export turnover by yielding $7,142 per hectare of cultivatable land.

By 2030, the country aims to have maintained the existing areas of rice, coffee, cashew and pepper cultivation. Tea cultivation on the other hand is planned to expand in the provinces of Son La, Dien Bien, Lai Chau, Lao Cai, Yen Bai, Ha Giang, Thanh Hoa and Nghe An.

The draft plan has expressed a desire for fruit tree cultivation to expand to 900,000ha providing produce for domestic and export markets. Vegetable cultivation will be stabilised at 1.1 million hectares, with flowers growing focused in climatically suitable highland areas such as Da Lat, Sa Pa and Moc Chau.

Red River Delta – Hai Duong trade fair nears

Over 200 firms from 18 cities and provinces nationwide will participate in the 2013 Red River Delta – Hai Duong industry and trade fair in the northern province of Hai Duong   from November 21-26.

The fair’s organising board said at a press briefing in Hai Duong on November 18 that the firms will put on show industrial and handicraft products and consumer goods at   more than 400 booths.

There will be business seminars to provide exhibitors with information about the market and trade demand in the region, thus making it easier for them to strike deals.

As part of the 2013 national trade promotion programme, this year’s fair will also come as a response to the campaign “Vietnamese use Vietnamese goods”.-

HDBank plans sale to Japanese investors

HCM City Development Bank (HDBank) will likely sell a 30 per cent stake to Japanese investors and list shares on the HCM City Stock Exchange, US financial news site  Bloomberg reported.

The bank's chairwoman Le Thi Bang Tam told Bloomberg that her bank was negotiating a 30 per cent share sale with three Japanese investors, which was expected to be   executed next year.

However, Tam did not reveal her partners or the value of the deal.

HDBank shares on the over-the-counter market are valued at VND7,000 (US$0.3) per unit. Therefore, 30 per cent of its shares after acquiring DaiA Bank may be equivalent   to VND1.7 trillion ($80.18 million).

Tam said she expected the deal would help HDBank expand its business with Japanese clients, the biggest investors in Viet Nam's financial market.

HDBank's deal would follow Vietinbank's (CTG) VND15.5 trillion ($731.1 million) partnership with Japanese Mitsubishi UFJ last December.

The merger with Dai A Bank, expected to be finalised in a few weeks, would give HDBank total assets of VND93 trillion ($4.3 billion) by the end of next year's first quarter or  

52.4 per cent more than the current value.

HDBank's non-performing loans (NPLs) reached 3 per cent as of September. The bank planned to offload some of the debt to the Viet Nam Asset Management Company.

Viet Nam's banking system has one of the highest NPL ratios in Southeast Asia, according to rating agency Fitch.

Meanwhile, in October, Prime Minister Nguyen Tan Dung hinted the Government could lift the cap on foreign ownership in banks in the near future.

Currently, foreign ownership in a Vietnamese bank cannot exceed 30 per cent, while a single foreign investor is allowed to hold a maximum of 20 per cent.

VN-China trade fair lifts business

Nineteen contracts, worth a combined US$230 million, were signed between Vietnamese and Chinese enterprises during the 13th Viet Nam-China International Trade Fair.

The week-long event, which finished yesterday in the northern mountainous province of Lao Cai, is the largest of its kind so far.

Up to 500 firms from the two countries showcased products, including agricultural goods, seafood, machinery and equipment, as well as handicrafts.

The fair, as part of the National Trade Promotion Programme, aimed to promote investment, tourism and services co-operation between Viet Nam's north-western localities   with China's Yunnan and other south-western provinces.

Deputy Minister of Industry and Trade Nguyen Cam Tu described the event as a good opportunity for businesses from the two countries to meet and establish trade   partnerships.

China has been Viet Nam's leading trade partner since 2004, according to the ministry's Trade Promotion Agency.

Bilateral trade had experienced an annual growth of 25 per cent in recent years, with last year's import-export revenue reaching $41.1 billion, up 15.2 per cent year-on-year.

The trade was estimated at $36.2 billion over the past nine months, up 21.1 per cent year-on-year.

Two-way trade is expected to top $60 billion and $100 billion in 2015 and 2017, respectively.

The two governments have established measures to strengthen trade ties and stabilise trade imbalances.

Bridgestone Viet Nam pumps capital

Bridgestone Tyre Manufacturing Viet Nam Ltd (BTMV) has increased its investment capital by US$416.4 million in its under-construction passenger car radical (PSR) tyres   plant in Hai Phong's Dinh Vu Industrial Park.

According to the Hai Phong IP Management Board, the plant was licensed early last year with a production capacity of 24,700 tyres per day in the first phase. It is expected   to expand production capacity to reach 49,000 tyres per day by the end of 2017.

The plant will serve as an export base for PSR general-purpose tyres sold in Europe, North America and Japan.

Stores slash prices ahead of Teacher's Day

In the run-up to the Vietnamese Teacher's Day tomorrow, the gift market is offering diverse choices, discounts and promotions.

The annual Teacher's Day is an opportunity for parents, students and society to show appreciation and gratitude to those who impart knowledge and skills in all disciplines.

Many supermarkets, bookstores and souvenir shops beginning this month have displayed a wide range of gifts such as cosmetics, notebooks, and greeting cards in prime   places.

According to shop assistants at Thang Long Book store in District 1, most students choose handbooks, pens and greeting cards for gifts to their teachers.

Greeting cards printed on different kinds of papers this year are being offered.

Besides stationery and cosmetics, clothes and fabrics at many stores are also attracting many buyers.

Supermarkets, bookstores and shops have launched promotions, with the supermarket chain Big C offering attractive discounts on items sold in gift boxes.

In addition, until December 2, customers with bills of VND300,000 and above can take part in a lucky draw at Big C with total prize value of VND4 billion (US$189,440).

At the Co.opmart supermarket chain, discounts of 21-32 per cent are being offered on 120 gift boxes, including cosmetics and office utensils.

Textile stores selling fabric to make ao dai (traditional Vietnamese outfit for women), and men fashion stores are reducing prices.

The ABC textile store in District 3 is cutting prices by 15 per cent on its products until November 20.

Buyers of ao dai fabric at showrooms of the Thai Tuan Group are being offered thousands of prizes on the special day.

In addition, flower shops are offering free delivery services to customers, and shoe, fashion and gift shops as well as spas and travel companies are also launching   promotions.

HCM City drives Aichi auto tie-up

HCM City is seeking support and co-operation in auto manufacturing with Japan's Aichi prefecture - a locality seen as the centre of Japan's auto industry.

Vice Chairman of the HCM City People's Committee Le Manh Ha outlined this ambition while speaking to visiting Aichi Governor Ohmura Hideaki and business leaders   yesterday.

Ha said he hoped businesses from Aichi would conduct more market research and increase their investment in the city.

According to the HCM City official, about 500 Japanese businesses were currently operating in the city, with a total capital of about US$2 billion.

Two-way trade between HCM City and Japan amounted to nearly $4 billion annually, Ha said, adding that the city welcomed over 300,000 Japanese visitors each year.

On this occasion, Ha expressed thanks to Japan in general and Aichi prefecture in particular, for their contributions to his city's construction and development process.

He cited the East-West Avenue project, including Thu Thiem tunnel, which uses official development assistance from Japan, as a shining example of successful co-operation between the two countries.

For his part, Ohmura Hideaki said Aichi hoped to further enhance ties with HCM City and with Viet Nam in general.

Aichi had paid attention to investment in Viet Nam and created conditions for small and medium-sized enterprises to seek co-operative opportunities in HCM City, he added.

The Aichi Governor committed to expanding co-operation between the two localities across industrial production, tourism and education.

Economic experts confident on growth

Experts suggested the Government continue to stabilise the macro economy and control inflation at a conference held yesterday by the State Bank of Viet Nam.

Can Van Luc, a senior official at the Bank for Investment and Development of Viet Nam, forecast that GDP growth next year would be 5.5-5.7 per cent and credit would surge  13-15 per cent while inflation remained stable at 7-7.5 per cent.

Such a forecast assumes that global economic growth will rebound significantly and local businesses will be ready to capitalise on participation in the Trans-Pacific  

Partnership and ASEAN Economic Community (AEC). Luc urged the Government to support firms so that they could do so.

Financial expert Le Xuan Nghia said that if measures were taken to deal with non-performing loans (NPL), lending next year would increase 14-15 per cent and economic growth would also be higher.

A representative from HSBC anticipated that GDP in 2014-15 would rise 5.4-5.8 per cent, higher than the forecast of 5.2 per cent for this year.

However, the bank expected inflation next year to increase 8.3-8.6 per cent, much higher than this year's forecast of 6.7 per cent.

HSBC anticipated that Viet Nam's foreign currency reserves would rise by US$5 billion yearly to reach $40 billion by 2015.

The forex rate would be stable at VND21,500 while the interest rate remained unchanged at 7 per cent.

Besides renovating the economic growth model, policy, infrastructure and human resources improvements should be also sped up, Luc said.

He added that the Government should do more to support businesses and deal with non-performing loans and cross-ownership in the banking sector.

He also suggested the Government raise the cap for foreign investors in the financial and banking sector.

Economist VuDinh Anh recommended that the Government not loosen monetary policies as this would negatively impact inflation control and economic stability.

The central bank should target roughly 10 per cent credit growth next year, rather than 13-15 per cent, he said.

Instead of further cutting the deposit interest rate, the economist said authorities and banks could take measures to reduce the gap between deposit and lending interest  rates.

Echoing Anh, Nguyen Dac Hung from Banking magazine said that the credit growth target should be considered only as a reference, rather than a hard line that the banking  sector had to reach at any cost.

Hung also recommended that the central bank continue its current stable forex policy, allowing the forex to fluctuate by only 2-2.5 per cent in 2014-15.

In order to support businesses, Nguyen Thi Ngoc Ha from the National Committee on Financial Supervision recommended speeding up tax administrative renovation and  suggested a VAT reduction for a number of necessary industries.

Eximbank shifts focus to retail

Eximbank Viet Nam, the HCM City Stock Exchange-listed bank, has decided to focus on more non-credit services as a growth strategy while it streamline administrative  

staff.

According to the bank's acting general director, Nguyen Quoc Huong, his bank would put more stress on retail banking, including cards, money transfer, gold and  foreign-exchange services, to serve millions of individual customers.

"Eximbank, like others, still depends on credit activities, which represent more than 70 per cent of total turnover, while the share should be 50 to 55 per cent," said Huong.

He explained that the time has gone when the gap between deposit and lending interest rates was 5-6 per cent.

"We have established our card centre and we're going to open a gold and foreign exchange centre and an e-banking one," he said, adding that even though the bank now  offers these services, it would be significantly enhanced when the new centre opens.

To improve its performance, the bank has streamlined its administrative staff at its headquarters in HCM City, moving 250 people to sales teams to better serve customers  

and increase turnover, and laying off another 48, according to chairman Le Hung Dung.

He denied previous rumours that up to 1,000 of the bank staff had lost their jobs.

However, Huong said there would be new recruitment of competent people in areas including sales and IT to support the new centres.

This year to date, the credit growth rate of the banking sector stands at more than 7 per cent compared to the 12 per cent target set by the State Bank.

Nation's fertiliser imports set to grow

Viet Nam is expected to import 11 million tonnes of fertiliser for agricultural production next year, a major increase from this year's total of 10.3 million.

The figures were made known by the Ministry of Agriculture and Rural Development.

Demand for urea fertiliser stood at 2.2 million tonnes, SA fertiliser at 900,000 tonnes, NPK at 4 million tonnes and potassium diammonium phosphate (DAP) at 1.8 million  tonnes.

While domestic producers can satisfy demand for some fertilisers, they are forced to import others, the ministry said.

Viet Nam imported 3.81 million tonnes of fertiliser in the January-October period, a rise of 17 per cent over last year.

Last month alone, the Ministry of Industry and Trade estimated the country's fertiliser imports totaled 450,000 tonnes, a 2 per cent surge over the previous month but a 6 per  cent decrease year-on-year.

Urea fertiliser imports saw the highest increase, rising 98 per cent against the same period last year to reach 138,000 tonnes.

Dinh Vu Fertiliser Plant in the northern city of Hai Phong has a yearly output of 330,000 tonnes, meeting 30 per cent of domestic demand for DAP.

The country has to spend hundreds of millions of US dollars to import over 800,000 tonnes of DAP every year.

The plant's owners expect to increase its annual capacity to 660,000 tonnes.

The Viet Nam National Chemicals Group (VINACHEM) will invest in building a plant with a similar capacity in northern Lao Cai Province's Tang Loong Industrial Park. The  plant is expected to become operational in 2015.

The company has also striven to implement rock salt exploitation projects in Laos to produce 320,000 tonnes of kali fertiliser each year.

In 2015, local enterprises will be able to meet 100 per cent of demand for urea, phosphate and NPK fertiliser, 70-80 per cent of demand for DAP and 30 per cent for SA.

DongA Bank opens five new branches

DongA Bank inaugurated yesterday its first branch in Cao Lanh, the provincial capital of Dong Thap Province, in the Cuu Long (Mekong) Delta.

This is the fifth branch that the bank has set up since November 12. The other four are in the provinces of Hau Giang, Kon Tum, Gia Lai and Dak Nong.

These branches brought the bank's total network to 245 branches and transaction offices nationwide.

BIDV to fund road project in Quang Nam

The Bank for Investment and Development of Viet Nam has entered a credit contract to provide a loan of VND1.246 trillion (US$59 million) to CIENCO5's project over a period  of 16.5 years.

The loan will enable CIENCO5 to upgrade a 40-km section of National Highway 1, which runs through the central province of Quang Nam.

This is part of the VND30 trillion (US$1.4 billion) credit package the bank signed early this year with the Ministry of Transport to fund the Build-Operate-Transfer project to  enlarge the highway.

Export turnover to India reaches $1.9b

Vietnamese export turnover to India reached nearly US$1.84 billion in the first nine months, an increase of 49.6 per cent, according to the Viet Nam trade office in India.

Nguyen Son Ha, Viet Nam trade counsellor in India, said two way trade turnover in the same period was estimated at $3.94 billion, up 39.2 per cent.

Ha Noi prepares to issue 3-year bonds

The Ha Noi People's Committee will issue three-year capital city construction bonds for VND3 trillion (US$143 million) starting on November 26.

The issuance aims to mobilise capital from the public in order to invest in major construction projects approved by the Ha Noi People's Council and People's Committee in  

December 2011 and May 2012 respectively.

Swedish firms keen on Vietnamese market

Many Swedish businesses have expressed their keen interest in the Vietnamese market, especially in the fields of banking, financing, recycle technology, transport, and  support industry.

At a reception hosted by Deputy Prime Minister Hoang Trung Hai in Hanoi on November 18, Swedish businesses described Vietnam as an attractive investment destination  thanks to its healthy business climate.

Deputy PM Hai highlighted the fruitful results of bilateral relations, which have been nurtured and developed for decades. The two countries have enjoyed stable economic  growth and actively engaged in the process of global integration process by promoting cooperation among countries around the world, he said.

He praised the Swedish government for encouraging businesses to operate in Vietnam.

Hai underscored that the government of Vietnam has offered many incentive policies and created the best possible conditions for foreign investors, including those from  Sweden, to establish long-term business operations in the Vietnamese market.

The two-way trade turnover between Vietnam and Sweden has grown at annual rate of 20%, almost reaching nearly US$1 billion.

Vietnam has received more than US$3.4 billion in on-refundable aid from Sweden, which has a total of 34 projects operating in the country.

Red flesh dragon fruit exported to US

The Dai Duc Cooperative in the southern province of Tra Vinh has won a contract to export 30 tonnes of red flesh dragon fruit to the US in 2014.

The fruit will be exported at the price of VND30,000-35,000 (US$1.4-1.6) per kg, VND8,000 (US$0.35) more than the average domestic price.

To maintain and expand export markets and raise the economic value of the fruit, the Tra Vinh Gardening Association and the provincial Department of Science and  Technology (DST) are instructing the cooperative to apply VietGap cultivation standards.

Tra Vinh province has 63 ha designed for red flesh dragon fruit, grown mainly in Duc My commune.

Vietnamese shrimps penetrate Korean market

Vietnamese shrimp exports to the Republic of Korea (RoK) have increased substantially in the third quarter of the year, up 77 percent on last year’s same period.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), September’s shrimp exports to the RoK experienced a rise of 86.2% compared to the  same period in 2012, bringing the total market value of shrimp exports  to over US$125 million in the first nine months, up 7.2%.

The RoK imported 77% of Vietnam’s total shrimp exports. The International Trade Centre said that Vietnam has now surpassed China to take the lead in exporting shrimps  to the Korea market in the first eight months of the year.

Vietnam exported around 6,700 tonnes of shrimps to the RoK, 6,200 tonnes to China and 2,800 tonnes to Thailand.

Domestic waterfowl industry targets further growth

Vietnam plans to increase the meat output of waterfowl by 8-10% a year in coming years, according to the Animal Husbandry Department.

The waterfowl sector, which breeds mostly ducks, also targets the volume of waterfowl bred by industrial farming to reach 50% by 2015 and 65% by 2020.

The country produces 280,000 tonnes of ducks and more than 2 billion duck eggs a year.

Nguyen Van Trong, deputy head of the department under the Ministry of Agriculture and Rural Development (MARD), said the selection and development of breed stocks  would be improved.

Central breeding centres will help local centres produce parental breed stocks. MARD now manages waterfowl purebred stocks and grandparent breed stocks, he said.

Purebred stocks and grandparent breed stocks are bred at the Hanoi-based Dai Xuyen Duck Research Centre, the Binh Duong Province-based Ben Cat Duck Centre and the  

Hai Duong Province-based Cam Binh Duck Centre.

Parental breed stocks sourced from grandparent stocks to produce commercial stock are managed by provinces and cities.

However, up to 95% of households and local breeding centres that raise parental breed stocks do not register with local agencies, according to the municipal and provincial  departments of Agriculture and Rural Development.

This has led to an imbalanced supply of commercial stocks among localities as local agriculture departments cannot manage the number of parental breed stocks and their  quality.

The northern provinces, for instance, often face a shortage of commercial stocks, causing the smuggling of commercial stocks via the border into the northern provinces.

Nguyen Dang Vang, chairman of the Viet Nam Animal Husbandry Association, said to improve the economic value of waterfowl production, localities should improve their  local waterfowl breed stocks by hybridising methods to create good hybrid stocks.

To ensure outlets for products, the waterfowl sector should complete the production chain by selecting breed stocks and animal feed and reducing the death rate of  waterfowl, he said

"The association is consulting MARD to set up technical standards for animal husbandry farms," he said.

Vietnam has 80 million waterfowl, including ducks and geese and other species, and is the world's second largest waterfowl producer, after China, according to the  department.

The country has various waterfowl strains that have high yield and quality. The Red and Mekong deltas are the country's two major waterfowl producers.

Manufacturing drives industrial production

The Index of Industrial Production (IIP) edged up 5.9% in October and 5.4% in the past ten months of this year, driven by an expansion in industrial manufacturing and  processing.

In the January-October period, industrial processing and manufacturing contributed 4.9% to the increase, while electricity production and distribution contributed 0.6% and  water supply, waste and liquid treatment contributed 0.1%.

The employment index at industrial companies indicated that they were recovering from their long slump, recording a 4.4% year-on-year rise as of October 1. A rise in the  

import of materials and machinery for production also testified to the recovery of domestic production.

Moreover, the inventory index of the manufacturing and processing industry as a whole jumped only 9.7% from the same period last year.

Some sectors even saw remarkable declines: the inventory index of electronic accessories fell 74.9%, while that of motor vehicle production went down 48% and cement  inventories declined nearly 44%.

According to economist Vu Dinh Anh, the fact that the inventory index was below 10% showed that the economy was far better than last year.

The Ministry of Industry and Trade (MoIT) forecast that inventories would shrink in the remaining months of the year because demand usually goes up in this period,  particularly in the apparel and footwear sectors.

At a recent ministry video conference, MoIT Deputy Minister Ho Thi Kim Thoa said to meet the 2013 target, departments and agencies should focus on satisfying demand in  the domestic market and strengthening distribution systems nationwide.

Apart from maintaining traditional export markets and developing new markets, businesses needed to propose detailed solutions for production issues, she added.

Boosting industrial production is one of the key factors to develop the national economy in the 2011-20 Socio-economic Development Strategy, 2011-15 Socio-economic  Plan and Socio-economic Planning for 2013.

The government aims to create economic momentum by investing in key industrial centres as well as industrial products.

Vietnam-China trade aims for US$60 bln in 2015

Vietnam and China are expected to increase their two-way trade turnover to US$60 billion and US$100 billion in 2015 and 2017, respectively.

According to the Trade Promotion Department under the Ministry of Industry and Trade (MoIT), China has been Vietnam’s leading trade partner since 2004.

The two countries’ trade exchange has enjoyed an annual growth of 25% in recent years, with last year’s import-export revenue reaching US$41.1 billion, up 15.2%  compared to the previous year’s figure.

From January to September 2013, it was estimated at US$36.2 billion, or 21.1% higher than the same period of 2012.

Senior leaders of both countries have worked out practical measures to strengthen trade ties and achieve a trade balance.

Complaints about difficulties in buying low-income houses

Despite more people being allowed to buy low income kind of housing, they continue to complain about various difficulties in purchasing these homes.

Currently, about 150,000 people in HCM City are in need of low-income houses, while the supply is just around 3,000 in total.

The majority of people who qualify for this type of housing are unable to pay 20% of the total value of their house first and have not yet been offered long-term loans with more preferential interest rates.

Speaking at a recent meeting on low-income homes held in HCM City, Nguyen Tran Phuong, Vice Chairwoman of the HCM City Labour Federation, said, "Buyers are offered preferential policies to pay the debts over ten years, but the price is still quite high compared to the income of labourers in HCM City. If a household has to spend VND5-6 million (USD238-285.7) per month to pay for their homes per month out of an income of VND9 million, this will affect their life."

Tien Phong Newspaper cited Nguyen Huu Hung, Chairman of the HCM City Department of Education and Training’s Trade Union, as saying that the city now has more than 20,000 teachers who want to buy low-income houses with incomes of around VND4 million per month.

Enterprises are not showing much interest in low-income housing projects, particularly in the current real estate market although they have been offered various preferences to invest, such as  tax exemptions, reductions on leasing and buying land and low-interest loans to carry out these projects.

However, according to Nguyen Van Danh, Deputy Director of the HCM City Department of Construction, low-income housing projects are still unattractive to investors because they find it difficult to gain access to the government’s preferential loans. Also, the time frame for return on investments with such projects remains long.

This year, HCM City will put into operation 11 projects totaling 3,000 low-income homes. By the end of 2015, some 17,500 houses will be completed.

October’s import-export value hits US$25.12 billion

Vietnam’s export figures for October were up by a healthy 12.8%, compared to the previous month, reaching a total revenue of US$12.61 billion. Imports rose by 11% to US$12.51 billion.

According to the General Department of Customs, total imports-exports in the latter half of October hit nearly US$13.6 billion, up 16.8% compared to the first half of the month.

Despite the US$241.2 million trade surplus acquired in the second half of October, the country still suffered a substantial trade deficit of nearly US$145.5 million, over the ten months.

In the review period, the country’s total exports grew 20% to nearly US$6.9 billion.

The increase is attributed to rising exports of particular commodities such as, telephones and components (up nearly US$295 million), crude oil (US$216.6 million), footwear (US$174.12 million), seafood (US$145.2 million), computer, electronics and components (US$116.1 million), and garments (US$US$104 million). In contrast, rubber and steel experienced a notable decline in exports.

By the end of October, the country’s total export turnover reached a staggering US$15 billion, up nearly 16% against the same period last year.

Foreign directed investment (FDI) companies accounted for nearly US$66.71 billion of that figure (excluding crude oil), accounting for 61% of the country’s total turnover.

Total imports in the second half of October soared by US$13.6% increasing from US$795.4 million to US$6.7 billion.

Products experiencing a rise in import value include machinery, equipment and tools (up nearly US$152 million), cotton (US$150 million), steel (US$92.4 million) and crude oil (US$91 million).

In addition, imports of certain products dropped significantly, compared to the first half of the month, for example telephones and components (down US$144.1 million), animal food and materials (down US$45.7 million).

Thus, the national total import value hit US$108.87 billion in ten months, up US$15.92% (equal to nearly US$15 billion) against the same period last year. The FDI sector made up US$61.94 billion, accounting for 56.9% of total imports.

MOC moots fresh projects

The Ministry of Construction has for the third time proposed more property projects to spread capital out of its VND30 trillion credit package.

These include nine new social housing projects and four more being converted from commercial housing projects.

The ministry has also proposed that the State Bank of Viet Nam ask eligible banks to speed up the process of assessing and disbursing capital from the credit package for property projects.

The State Bank said it would consider disbursement of capital for those projects based on the ministry's proposal.

In the past, the ministry proposed 59 projects in 26 provinces and cities to spread capital from the credit package.

Gamuda Land offers deal

To celebrate the 6th anniversary of Gamuda Land Vietnam, a special promotion package "Move in now with 30 per cent payment" was officially launched this month by the developer.

The package applies for buyers of semi-detached and small terraced houses in Gamuda Gardens Township, Hoang Mai District, Ha Noi.

As part of the promotion package worth up to US$25.000, buyers are able to move in early after paying only 30 per cent of the total contract value.

The remaining 70 per cent will be paid via a Deferred Payment Scheme in 24 months with zero per cent interest.

Strategically located in the southern gateway of Ha Noi, Gamuda Gardens spans over 73ha and is one of four main components of the Gamuda City project.

JW Marriott Hanoi open for service

Marriott International marks a milestone in its expansion into Southeast Asia with the unveiling of the first JW Marriott hotel in Ha Noi this month.

Marriott International's second opening in Viet Nam after the Renaissance Riverside in HCM City, the new property reaffirms the company's confidence in Viet Nam's potential.

Designed by acclaimed architecture practice Carlos Zapata Studio, the new hotel puts an emphasis on design quality.

Traditional dragon folklore and the magnificent coastline of Viet Nam inspired the building.

Located in Ha Noi's new central business district and adjacent to the National Convention Center, the hotel is set to become a key player for business and leisure in the city's hotel industry.

Ha Noi-Moscow scheme set to start

The Ha Noi-Moscow Cultural, Trading and Hotel Centre will start operation on November 20 in Moscow, Russia, with total capital of $240 million.

The centre, a cooperation project between Ha Noi and Moscow, is aimed at promoting economic, cultural and tourism ties.

Local enterprises can buy or lease apartments and pavilions in the centre, which will support for them in establishing their business in the building and seeking partners for business activities.

Green Land sells residence project

Management board of the Green Land Service and Property Construction Joint Stock Company has agreed to sell the Tam Vu Minh – Binh Duong Riverside residence project for VND70 billion.

The company said the project had received total investment of VND28 billion.

In the third quarter, the company gained a year-on-year increase of 53 per cent net profit to reach VND51.6 billion, mainly raised from intermediary activities.

CBRE Viet Nam wins top gong

CBRE (Viet Nam) Co Ltd was awarded the title of "Best Property Consultant Viet Nam" at the recent South East Asia Property Awards 2013.

Marc Townsend, Managing Director of CBRE Viet Nam, said: "We are delighted and honoured that CBRE Viet Nam is named the Best Property Consultancy. It is recognition for the whole team for the considerable work they have put in providing market leading services to our clients."

"The market has remained challenging in 2013, yet CBRE has remained committed to maintaining the very best professional standards and continuing to develop our team so that we can always maximise opportunities for our business partners."

Manufacturing drives industrial production

The Index of Industrial Production (IIP) edged up 5.9 per cent in October and 5.4 per cent in the first ten months of this year, driven by an expansion in industrial manufacturing and processing.

In the January-October period, industrial processing and manufacturing contributed 4.9 per cent to the increase, while electricity production and distribution contributed 0.6 per cent and water supply, waste and liquid treatment contributed 0.1 per cent.

The employment index at industrial companies indicated that they were recovering from their long slump, recording a 4.4 per cent year-on-year rise as of October 1. A rise in the import of materials and machinery for production also testified to the recovery of domestic production.

Moreover, the inventory index of the manufacturing and processing industry as a whole jumped only 9.7 per cent from the same period last year.

Some sectors even saw remarkable declines: the inventory index of electronic accessories fell 74.9 per cent, while that of motor vehicle production went down 48 per cent and cement inventories declined nearly 44 per cent.

According to economist Vu Dinh Anh, the fact that the inventory index was below 10 per cent showed that the economy was far better than last year.

The Ministry of Industry and Trade forecast that inventories would shrink in the remaining months of the year because demand usually goes up in this period, particularly in the apparel and footwear sectors.

At a recent ministry video conference, Deputy Minister Ho Thi Kim Thoa said that to meet the 2013 target, departments and agencies should focus on satisfying demand in the domestic market and strengthening distribution systems nationwide.

Apart from maintaining traditional export markets and developing new markets, businesses needed to propose detailed solutions for production issues, she added.

Boosting industrial production is one of the key factors to develop the national economy in the 2011-20 Socio-economic Development Strategy, 2011-15 Socio-economic Plan and Socio-economic Planning for 2013.

The government aims to create economic momentum by investing in key industrial centres as well as industrial products.

Vinasoy opens soy research facility

Viet Nam's largest soya products company, Vinasoy, launched Viet Nam's first soya-bean research centre in central Quang Ngai province.

A source from the company said the centre will develop research on new seeds, hi-tech production methods and ways to meet international standards.

The centre also signed a Memorandum of Understanding (MoU) on co-operation with the National Centre for Soybean Biotechnology (NSBC) at the University of Missouri and the National Soybean Research Laboratory (NSRL) at University of Illinois.

Vinasoy, a member of the Quang Ngai Sugar joint-stock company, earned revenues of VND5 trillion (US$238 million) last year.

According to a market survey from Nielsen, Vinasoy commands 78 per cent of the domestic market for packaged soya bean milk products.

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