VN Customs ranking 8th in customs statistics

Viet Nam Customs was ranked eighth among 160 nations in terms of customs statistics.

Representatives from the Department of Information Technology and the General Department of Viet Nam Customs revealed that the ranking was formed based on calculations of three professionals in the Asian Development Bank (ADB).  

The imports and exports statistics collected by Viet Nam Customs gained high mark, equal to the Republic of Korea’s customs.

In comparison with other countries in ASEAN, Viet Nam followed Thailand in the ranking. The result showed the quality of customs and commercial management of Viet Nam.

Chile led in the ranking, followed by Japan and Peru.

Vietnam, South Africa to double bilateral trade value

The Governments of Vietnam and South Africa have set to double bilateral trade value through increasing the sale of staples of their strength.

Accordingly, South Africa will boost shipments of coal, beef and fruits to Vietnam, while the Southeast Asian nation will step up the export of rice, seafood, electronic products, computers and construction materials to the country.

To realise the goal, Vietnam’s designated trade office in South Africa will lend a helping hand to domestic businesses in market research, especially knowledge about retail groups in South Africa and its neighbouring countries.

At the same time, it will assist Vietnamese businesses to engage in the value chain in South Africa and directly set up links with local retailers.

In 2015, the office assisted domestic businesses’ participation in the South African International Trade Exhibition (SAITEX) in 2015 and organised a meeting for the two countries’ businesses in Cape Town during Deputy Prime Minister Hoang Trung Hai’s visit.

It also coordinated with overseas Vietnamese businesses to put Vietnamese tra fish on menu of Sai Gon Cape Town Restaurant based in the host country.

In the first six months of 2015, bilateral trade between Vietnam and South Africa reached nearly 700 million USD.

Vietnam expects to earn 1.2 billion USD worth of goods sold to South Africa this year.

Vietnam stock sector has foundation day

The Prime Minister has issued a decision to take November 28 as the Foundation Day or Traditional Day for Vietnam's stock markets.

The Foundation Day aims to provide historical development of Vietnam's stock markets, and encourage individuals and organisations in the market to guarantee their legal actions and obligations.

The Foundation Day is also an event to give credit and rewards to those who have made great contributions to the development of local stock markets.

Vietnam's stock markets have operated since July 2000 with exchanges in HCM City and Hanoi, trading nearly 700 stock codes and fund certificate codes as well as nearly 600 bond codes.

The local stock market capitalisation was 1.14 quadrillion VND (50.7 billion USD) in 2015, an increase of 16.4 percent from 2014.

Central bank approves company-bank merger

The State Bank of Vietnam (SBV) has issued a decision to approve the merger of Song Da Finance Company (SDFC) and Military Commercial Joint Stock Bank (MBBank).

The merger will come into effect on March 18 this year.

MBBank will receive all assets, rights, obligations and legal interests of SDFC.

Within 15 working days of the decision taking effect, the bank must complete the procedures for business registration as prescribed by law, announce the merger as well as implement other duties as prescribed by law.

SDFC will transfer all assets, rights, obligations and legal benefits to MBBank.

SBV will also complement MBBank's operating licence's new content, such as financial advisory, asset management service, mergers and acquisitions advisory, as well as investment advisory.

MBBank had announced the merger with SDFC in an extraordinary shareholder meeting in October 2015.

The new finance company - MB Finance Co Ltd (MB Finance) - is expected to have a charter capital of 500 billion VND (22.3 million USD).

In the first two years, MB Finance will be equipped with facilities, personnel and a distribution network to enter the consumption finance market. The new company will expand its market share and operations, and diversify its products and customers from the third year of operations.

The ratio between SDFC shares and MBBank shares is currently 2.2/1.

Vietnam's consumer confidence improves: Nielsen

Vietnam advanced in the latest consumer confidence ranking by global information and measurement company Nielsen.

The firm said in an online report released on February 17 that Vietnam's consumer confidence index reached 108 points in Q4/2015, up three points over Q3/2015.

This helped the country rank sixth globally in terms of optimism in the fourth quarter, compared with its tenth position recorded in the third.

Nielsen Vietnam General Director Vaughan Ryan said that, with sharply rising consumer spending, retailer sentiment had clearly improved during the last Lunar New Year holidays – the busiest shopping season of the year.

The report said consumers were willing to spend big, although saving remained a growing trend in the context of rising living costs.

Sixty percent of Vietnamese people reduced spending on cooking gas, electricity and clothes, and about half of them cut expenses on entertainment and telephone communication in the past year.

Vietnamese people are more concerned about building a solid financial foundation for their future, just like those surveyed in other Southeast Asian nations.

Seventy-nine percent (up one percentage point quarter-on-quarter) of Vietnamese consumers affirmed this, followed by Indonesia (75 percent), the Philippines (65 percent), Singapore (64 percent), Malaysia (63 percent) and Thailand (60 percent).

However, 44 percent of Vietnamese consumers (up two percentage points) said they were willing to reserve money for travel and vacations, 38 percent (up two percentage points) were willing to buy new technological products, and 37 percent (up three percentage) were willing to use recreation services.

ANZ Bank also reported record high consumer confidence in Vietnam last December.

"Vietnam's economic outperformance from both an external and now a likely domestic perspective is confirmed," Glenn Maguire, the chief economist of the bank in South Asia, ASEAN and the Pacific said.

"Our final reading of the Vietnam consumer confidence index leaves us in no doubt that the country will be one of Asia's outperforming economies in the period 2016 to 2017," he said.

The Nielsen report also pointed out that Southeast Asian nations were the most optimistic in the world. The Philippines ranked second globally with the consumer confidence index reaching 117 points in the last quarter, while Indonesia ranked third at 115 points, and Thailand ranked fourth at 114 points.

Can Tho seek ways to pitch for investment capital

Chairman of the People’s Committee of southern Can Tho city Vo Thanh Thong has called for attracting multinational corporations and small and medium-sized enterprises operating in industry and support industry.

He made the call during a local conference on February 18 reviewing the 2011-2015 investment climate and outlining measures to pitch for further capital inflows.

According to him, the city should tap its advantages, such as its infrastructure and central position in health care and education in the Mekong Delta region, while streamlining administrative procedures.

Nguyen Thanh Hong, Director of the municipal Department of Planning and Investment, suggested refining investment attraction policies and providing more business incentives.

In the foreseeable future, the city should invite large-scale and competitive projects that are able to join the global supply chain, he said.

Meanwhile, Director of the municipal Department of Industry and Trade Nguyen Minh Toai urged for dealing with existing obstacles, including high rental costs and the limited supply of land for rent.

According to the municipal Department of Planning and Investment, the city housed 388 projects worth more than 85.3 trillion VND (3.87 billion USD) as of the late 2015, including 68 foreign-invested valued at over 20 trillion VND (900 million USD) and domestic projects worth 65.2 trillion VND (2.96 billion USD).

Over 15,300 businesses are operating in Can Tho in industry, trade-services and export-import, giving a total registered capital of more than 95.1 trillion VND (4.32 billion USD).

Hai Phong seeks to attract more investors

The Hai Phong Economic Zone Authority (HEZA) has announced its plan to lure a new wave of capital in 2016.

According to HEZA deputy head Mai Xuan Hoa, the northern city is targeting investments of 1.8 billion USD from foreign firms and 10 trillion VND (450 million USD) from domestic ones.

As such, speeding up land clearance for infrastructure construction at the Dinh Vu-Cat Hai economic zone is top of the agency’s agenda, Hoa said.

Meanwhile, investment promotions, including providing policy consultation and building a constantly updated database system, are also prioritised .

Administrative procedures will be further overhauled to cut red tape, thus shortening licencing time.

Hai Phong boasts a highly incentivised policy targeting investors and a convenient transport system, which includes the Tan Vu-Lach Huyen deep-water port, Cat Bi international airport and the Hanoi-Hai Phong motorway.

Currently, there are 203 foreign-funded projects operating in industrial parks and economic zones in Hai Phong, with a total registered capital valued at more than 7.9 billion USD. Domestic firms have thus far invested over 46.8 trillion VND (2.1 billion USD) in 99 projects across the city.-

HCM City to foster production, investment climate

The southern Ho Chi Minh City will foster production and improve the investment climate in an attempt to attract financial resources and manpower and encourage a business start-up movement among people in the city.

The announcement was made by Chairman of the municipal People’s Committee Nguyen Thanh Phong at a conference held in the city on February 18.

The Chairman said authorised bodies should join hands with enterprises to evade inefficient administrative procedures which could affect the investment climate and businesses.

He said talks between the city’s officials and enterprises should be conducted promptly to solve difficulties for enterprises and investors in order to bolster investment activities and economic development.

In 2016, the city will speed up promotional activities in the fields of commerce, services, tourism and market expansion. It will also target to improve growth quality, and increase its economic effectiveness and competitiveness with a view to developing the domestic market and controlling its consumer price index (CPI).

Vice Chairman of the municipal People’s Committee Le Thanh Liem said the city’s total value of goods during the Lunar New Year (Tet) festival was 16.2 trillion VND (736.3 million USD), up 462 billion VND (21 million USD) compared with the same period in 2015.

Trade promotion helps boost farm produce export

The ministries of Agriculture and Rural Development, and Industry and Trade co-hosted a seminar in Hanoi on February 18 to discuss ways to further promote the export of farm produce to foreign markets.

2016 is forecast to be a promising year for the export of agro-forestry-aquaculture products due to increasing demands in the global market and because Vietnamese businesses will have the opportunity to enjoy tax incentives from free trade agreements signed between the country and its partners.

The US market is said to be the most promising and stable market for Vietnam’s exports in recent years, with commodities as wood and wood-based products, aquatic products, and other farm produce such as cashews, pepper and coffee doing well.

According to Le Van Banh, head of the Department of Processing and Trading Agricultural, Forestry, Aquatic Products and Salt said it is necessary to enhance trade promotion in foreign markets, and further improve the quality of products to meeting strict food safety regulations.

Sharing the view, Vietnamese trade counsellor in Australia Nguyen Thi Hoang Thuy noted that Australia is also a potential market for Vietnam’s exports, but it applies stringent regulations on food safety.

Regarding market expansion for Vietnamese fruit, deputy head of the Plant Protection Department Hoang Trung said Vietnam has completed negotiations to sell fruit to various markets such as the US, Japan and Taiwan (China).

Trade counsellors in foreign countries should give more assistance to domestic companies to hasten exports to the markets, he suggested.

According to Vietnamese trade counsellor in Egypt Pham The Cuong, this country is seen as an auspicious export market for Vietnam’s agro-aquaculture products as it always faces water shortages, which is vital to agricultural production. However, almost no trade promotion activity by Vietnam is currently carried out in the country.

Deputy Minister of Agriculture and Rural Development Tran Thanh Nam asked trade counsellors keep domestic enterprises updated on information related to market forecasts and regulations on trade barriers, to support them in their exports.

Nam also hoped for a closer cooperation between the two ministries to continue expanding markets for Vietnam’s agro-forestry-aquaculture products, effectively exploiting traditional markets like ASEAN and the EU, and focusing on potential ones in the Middle East and Africa.

Domestic footwear makers face bumpy ride ahead

Domestic footwear producers must brace themselves for a bumpy ride ahead in the face of stiffer competition as they lag behind their regional rivals in terms of technology.

Vietnam’s footwear products are shipped to around 50 countries worldwide, with the largest buyers including the US, Japan and the EU.

Footwear exports rose sharply from 8.5 billion USD in 2013 to 12.07 billion USD last year, but this does not necessarily indicate a bright future for the country’s footwear firms.

According to chairman of the Thai Binh Shoes Group Nguyen Duc Thuan, local footwear manufacturers are under great pressure to replace their outdated methods with more advanced technology if they want to survive fierce competition.

The local footwear industry has been developing for two decades, but with little technological advancement in production compared to the robust development of global footwear technology, Thuan said.

Businesses need to innovate and adopt new manufacturing technologies alongside a long-term strategic vision for at least the next 10 years to ease competitive pressure, he stressed.

Another problem comes from local productivity which is still far below those of regional rivals. Low productivity did not only affect the industry’s competitive position but also led to low incomes.

If productivity does not improve, local producers will end up losing orders to competitors from overseas and at home, Thuan added.

Statistics from the Ministry of Industry and Trade showed that Vietnam produced approximately 1.1 billion pairs of shoes in 2015, 72.2 percent of which were made by foreign direct investment (FDI) firms.

FDI firms also accounted for 79 percent of footwear exports last year, making the disparity between FDI and domestic makers even wider.

Furthermore, more pressure will be added from regional businesses, such as Thailand, Cambodia, Myanmar, Indonesia and the Philippines, since the ASEAN Economic Community was officially formed last year, allowing free cross-border movement of goods, capital and human resources.

Domestic market – promising for garment businesses

The 90 million strong domestic market holds the potential for the garment and textile sector to increase its revenue.

Annual spending on apparel products stands at around 3 billion USD, according to Chairman of the Vietnam Textile and Apparel Association (VITAS) Vu Duc Giang.

However, a mere 20 percent of businesses are interested in the local market, mainly focusing on major cities, and leaving potential rural areas for Chinese products to dominate, said a local newspaper.

Deputy Director of the Vietnam National Textile and Garment Group (Vinatex) Hoang Ve Dung told Thoi bao Kinh te Viet Nam that businesses are not focusing on the development of the domestic market.

Many have not concentrated on improving quality or building brand names for their products, he said.

According to Dung, businesses should launch promotions to boost purchasing power.

Businesses should also expand their retail chains in supermarkets and retail stores in both urban and rural areas to secure their foothold in the local market, he said.

According to VITAS, domestic spending on garment and textile products increases by 10-15 percent per year. The garment sector grossed 3.5 billion USD in local revenue in 2015.

Highly-dynamic France-Vietnam cooperation sought

The Embassy of Vietnam in France held an exchange with members of the Association France – Asie in Paris on February 17 with a view to seeking a highly-dynamic cooperation for the two countries.

Ambassador Nguyen Ngoc Son briefed participants of the latest situations in Vietnam, regarding political stability, economic growth, international integration, and 12th National Party Congress resolution and future steps.

He reaffirmed the traditional friendship and cooperative ties between the two nations, which have been cemented through continuous high-level delegation visits and trade exchanges.

Vietnam and France established their strategic partnership during the official visit of Prime Minister Nguyen Tan Dung to France in September 2013.

Talking with the Vietnam News Agency correspondents, representatives of participating French firms said they found the investment climate in Vietnam increasingly attractive.

Jean-Marie Cambaceres, President of the Association, who initiated the event, said that the meeting aims to make the France-Vietnam relations more active.

He added that French enterprises hold high hopes on the French President’s upcoming visit to Vietnam.

Early preparations should be made for feasible projects in the fields of France’s strength like energy, national defence and environment to fully tap the opportunities to be stemmed from the visit, he noted.

President of the Crossance Peace, Ludovic Emanuely said Vietnam’s restructuring process and new underway policies have facilitated the development of the cooperation between the two nations’ enterprises.

He suggested that Vietnam and France work to increase bilateral trade and invest in a third country.

Credit institutions asked to up lending to boost business

State Bank of Viet Nam (SBV) Governor Nguyen Van Binh on Wednesday asked credit institutions to boost lending right after Tet (Lunar New Year) in a move to support businesses.

Under Directive No819/NHNN-VP, the Governor asked the institutions to effectively enhance their capital mobilisation to be able to meet credit demands of firms and individuals right at the beginning of the lunar year.

The institutions must intensively resolve tasks that remained stagnant during Tet to create the most favourable conditions for capital mobilisation and lending, as well as to deal with payments and transactions of customers after the festival.

The institutions were also asked to actively prepare the business plans for 2016 to ensure smooth and safe performance in accordance with monetary and credit policies approved by the Government and the central bank, the Governor said.

Early this week, Prime Minister Nguyen Tan Dung instructed the banking industry to ensure credit growth right at the beginning of the lunar year in accordance with the lending target set for 2016.

The central bank this year targeted a credit growth of 18 to 20 per cent. However, it said the rate might be adjusted flexibly based on the actual situation as done in 2015.

The central bank first targeted a credit growth rate of 13 per cent in 2015, but then revised it to between 15 per cent and 18 per cent to meet the rising capital demands of the economy.

According to the central bank's statistics, last year's credit growth rate reached 17.29 per cent, of which lending to the high-tech application sector, one of five prioritised sectors, surged sharply by 43 per cent year-on-year, seven fold higher than the average credit growth rate of the economy.

The central bank estimated that as of January 20, 2016, lending declined 0.21 per cent against the end of last year. However, it said, the decrease was a normal rule as in previous years, adding that lending in the first month of this year was still better than in the same period last year, when lending decreased by 0.5 per cent.

According to experts, higher economic growth this year could push up the demand for capital in the next few months.

Credit institutions are also optimistic about the ability of businesses to take loans this year, according to a recent SBV survey.

The survey said the institutions expected outstanding loans to surge to 21.4 per cent on average, much higher than the 14.57 per cent forecast in the same survey in late 2014.

SBV has recently also instructed its offices around the country to continue supporting the New Rural Development Programme.

Based on results from the first five years of the programme since 2010 and plans for the next five years, SBV assigned its branches to advise local authorities and programme steering committees in carrying out the programme.

They have also been tasked with working with local authorities to propagate and carry out related credit programmes in a timely manner and assist customers facing difficulties.

They have to report twice a year on lending related to the rural development programme, spelling out what they have done and the difficulties they face.

The New Rural Development Programme will go on until 2020, when it targets 50 per cent of the nation's communes achieving the new rural standards set by the Ministry of Agriculture and Rural Development.

It is funded by the Government, loans, companies and co-operatives, and the community.

The SBV guides lending by banks that have joined the programme.

VN agriculture exports to US likely to surge, ministry official predicts

Viet Nam's agricultural exports to the United States (US) are expected to surge with stable demand from a key market, an official of the government said yesterday.

Le Van Banh, head of the Department of Processing and Trading Agricultural, Forestry, Aquatic Products and Salt under the Ministry of Agriculture and Rural Development, told the seminar that this year was forecast to be a promising year for the export of agro-forestry-aquaculture products due to increasing demands in the global market, and because Vietnamese businesses would have the opportunity to enjoy tax incentives from free trade agreements signed between the country and its partners.

The seminar co-organised by MARD and the Ministry of Industry and Trade (MoIT) held in Ha Noi yesterday discussed ways to further promote the export of farm produce to foreign markets. Associations, trade counsellors and businesses attended the seminar.

The US market is said to be the most promising and stable market for Viet Nam's exports in recent years, with commodities as wood and wood-based products, aquatic products, and other farm produce such as cashews, pepper and coffee doing well, he added.

He said it was necessary to enhance trade promotion in foreign markets, and further improve the quality of products to meet the strict food safety regulations.

Sharing the view, Vietnamese trade counsellor in Australia Nguyen Thi Hoang Thuy noted that Australia has also been a potential market for Viet Nam's exports, but it has imposed stringent safeguards on food safety.

Regarding market expansion of Vietnamese fruit, deputy head of the Plant Protection Department Hoang Trung said Viet Nam has completed negotiations to sell fruits to various markets such as the US, Japan and Taiwan (China).

Trade counsellors in foreign countries should give more assistance to domestic companies to hasten exports to the markets, he suggested.

According to Vietnamese trade counsellor in Egypt Pham The Cuong, this country has been seen as an auspicious export market for Viet Nam's agro-aquaculture products as it always faces water shortages, which is vital to agricultural production. However, almost no trade promotion activity by Viet Nam is currently being carried out in the country.

MARD's Deputy Minister Tran Thanh Nam asked trade counsellors to keep domestic enterprises updated on information related to market forecasts and regulations on trade barriers, to support them in their exports.

Nam also hoped for closer co-operation between the two ministries to continue expanding markets for Viet Nam's agro-forestry-aquaculture products, effectively exploiting traditional markets such as the ASEAN and the EU, and focussing on potential ones in the Middle East and Africa.

Businesses urged to be active

Nguyen Bao, Vietnamese trade counsellor in Cambodia told the internal session of the trade counsellors' conference 2016 held here on Wednesday that they have been burdened by export growth targets.

Pham Quang Niem, Vietnamese trade counsellor in Russia – a market which suffered numerous fluctuations over the past two years – said trade promotions were needed to give Vietnamese goods access to the country.

Russian people have not been inclined towards e-commerce and prefer seeing products being sold over the counter, he said.

He added that 160 Vietnamese businesses introduced their goods at exhibitions in Russia in 2015 and were receiving the attention of the people.

‘We were surprised when local businesses sold a large amount of goods in Russia. Several firms registered themselves to establish a representative office in Russia to promote their sale," he noted.

He said domestic firms should be prepared to take advantage of the opportunities in the market as the free trade agreement (FTA) between Viet Nam and the Eurasian Economic Union (EAEU) would take effect in June.

The MOIT set an export target of US$181.5 billion for the year of 2016, posting a 10 per cent year-on-year increase.

This was the reason trade counsellors in foreign countries would play a vital role in enhancing exports by providing information, promoting goods and supporting businesses in seeking contracts.

However, they also asked enterprises to invest in advertising and participate in exhibitions. They should be more active in advertising their own partners and seeking information.

PM approves plans for $18.6m Khanh Hoa port

Prime Minister Nguyen Tan Dung has given the green light to the Bac Van Phong project, which will see the construction of a giant multipurpose port in Van Ninh District's Dam Mon Village by Cang Nha Trang JSC.

Cang Nha Trang JSC has proposed to invest VND417 billion (US$18.6 million) to build the port, according to the Khanh Hoa People's Committee, that was assigned to direct and guide the management board of the Van Phong economic zone.

The company intends to build two multipurpose ports in the initial phase of their investment plan by 2020, which will be capable of handling 1.5 to 2 million tonnes of products per year, and container ships of up to 50,000 deadweight tonnage.

In the following phase, the company will build two additional ports that will be capable of handling 1 to 1.5 million tonnes of products and much larger container ships.

In previous years, Nha Trang port had been the major maritime port in the northen area of Khanh Hoa and Tay Nguyen provinces. However, two years ago, the Prime Minister decided to turn it into a tourism port.

By taking over the multipurpose port function of Nha Trang, Bac Van Phong port will secure jobs for the experienced labour force and facilitate the product delivering process for the Khanh Hoa and Tay Nguyen provinces.

G-bonds to fund infrastructure projects

A total amount of VND14.2 trillion (US$634 million) from government bonds, which is the remaining capital from expansion projects on National Highway 1A and Ho Chi Minh Highway passing through Central Highland region, will be used to construct 17 new projects and repair dozens of weak bridges on highways.

It is a part of State budget estimates in 2016 approved by the National Assembly.

VND1.6 trillion ($73.2 million) will be spent on projects including constructing 13 bridges, adding four bridges crossing southern Binh Thuan Province and resettlement assistance for National Highway 1 expansion projects.

As many as 17 new projects will be implemented using the remaining VND9.274 trillion ($412.2 million).

Nguyen Hoang, head of the transport ministry's Planning and Investment Department, said that the Ministry of Transport submitted a document to the Prime Minister on reallocation of the capital on February 3.

After the allocation, the capital is predicted to continue to reach a redundancy of about VND3.811 trillion ($169.4 million) to implement an additional 13 projects.

Transport Deputy Minister Nguyen Hong Truong assigned the Planning and Investment Department to submit a document and propose ratification of the general plan to Ministry of Science and Technology. It aims to accelerate the use of the capital and allow projects to be implemented in the first quarter of this year.

In a related development, transport ministry announced plans to carry out 23 transport public-private-partnership (PPP) projects this year. Total investment of the projects reaches up to VND39.899 trillion($1.7 billion), with nearly 99 per cent sourced from investors.

Truong asked the management board of PPP projects to finalise a list of PPP projects for all sectors in 2017 and the following years.

According to the management board, the transport ministry is supervising 80 PPP projects worth more than VND223.670 trillion ($9.7 billion). 33 projects have been put into operation and 47 others are being implemented.

VN trade with Australia drops 19% on lower crude oil prices

Two-way trade between Viet Nam and Australia saw a year-on-year decrease of 19 per cent to US$4.93 billion in 2015, according to latest statistics from the General Department of Customs.

Of the sum, Viet Nam's exports to Australia reached $2.91 billion, down 27.2 per cent on-year while its imports from the market also witnessed a modest drop of 1.6 per cent to $2.02 billion. Despite the export reduction, Viet Nam still recorded a trade surplus of approximately $900 million with the market.

The Ministry of Industry and Trade blamed the steep decline in Viet Nam's exports to Australia on the significant drop in crude oil prices. Crude oil exports, which accounted for half of the Viet Nam's export value to Australia in recent years, dropped by 69.4 per cent year-on-year to $567 million in 2015.

Last year, telephones and components for the first time crossed crude oil to become the Viet Nam's largest export product to Australia with a turnover of $579.8 million, surging 32.5 per cent over same period last year.

Viet Nam's other export items to Australia included computers, electronics and component, earning a turnover of $217 million; footwear ($177 million); seafood ($171 million); and wood and wooden goods ($157 million), in addition to textile and garment ($142 million); machine and equipment ($141 million) and cashew nuts ($117 million).

Meanwhile, the country mainly imported metal with a turnover of $387 million; wheat ($312 million); coal ($127 million); and cotton ($87 million); in addition to iron and steel scrap ($77 million); machinery, equipment ($74 million) and garment and footwear production ($38 million) from Australia.

Ha Noi to reform customs, taxes in bid to boost trade

Ha Noi will hasten administrative reforms in customs and tax and create favourable conditions for production in an effort to boost the city's exports.

The capital city aimed to achieve an export growth of 7.5 per cent to reach a turnover of US$12.2 billion this year, seeing not only great opportunities but also challenges arising from free trade agreements (FTAs).

According to the municipal People's Committee, the formation of the Asean Economic Community and the participation of Viet Nam in new-generation FTAs were opening the doors for the city to boost exports, given the elimination of many tariff lines.

In addition, the application of the amended enterprise and investment laws would also power local production and business.

However, the increasing trend of protecting local production and high quality requirements of import markets as well as the competition from other exporters, especially countries which devaluated their currencies were among major challenges.

Addressing those challenges, the capital city was developing a project to boost exports in the 2016 to 2020 period with a vision to 2025.

Besides speeding up administrative reforms, during this year, the city would continue to provide preferential loans for firms in the country to promote production and while developing human resources to meet the demand of labourers for the production of export products.

The city said that focus would also be placed on developing the infrastructure, including major industrial zones, high-technology industrial zones and building a supply chain of high-quality agricultural products, coupled with the implementation of trade promotion.

Supervision would be tightened to ensure quality and hygiene of export products.

Ha Noi urged local firms to enhance product quality, apply high technology and build the brand to improve competitiveness amid rapid integration.

Major export products of the city were garments and textiles, footwear and leather products, electronic components and glass products.

VIB wins international recognition

Last year saw Vietnam International Bank (VIB) continuing gaining recognition from local and international organizations for its better banking products and services.

The bank obtained titles and awards such as “Bank with the highest credit strength ratings in Vietnam” and “Most outstanding bank with innovative products and services” via the MyVIB app from International Data Group (IDG). Notably, it got “Bank of the Year 2015” title from The Banker magazine of the UK, one of the most prestigious banking publications in the world.

Founded in 1926 and based in London, The Banker is now one of the world’s leading magazines on economics, finance and commerce. In 2015, The Banker honored the most outstanding banks in each of 152 countries by considering their financial strength, business model and risk management capability.

Aside from criteria such as capital, assets, net profit, return on equity (ROE) and non-performing loan ratio, The Banker highly praised VIB for its sustainable growth strategy, advanced banking technologies, continuous innovation and marketing activities during the year.

Last year, VIB’s Retail Bank launched a new digital banking strategy by developing MyVIB mobile banking app and a brand new website at www.vib.com.vn. The lender also launched new customer-centric marketing and communication strategies with integrated promotional campaigns for customers such as “Golden moment” and “Fulfill your dream with VIB.”

Besides, VIB introduced a new comprehensive product and pricing policy, delivering better lending and deposit products for existing and new customers. VIB also signed a long-term and visionary strategic partnership with Prudential Vietnam to exclusively distribute life insurance products.

For wholesale banking, VIB was one of the first local banks to introduce Korean and Chinese speaking desks to tap overseas markets.

In addition, a number of credit programs were offered to small and medium-sized enterprises (SMEs), including a fast-moving consumer goods (FMCG) distributor credit program and an auto dealer financing and quick auto loan package.

VIB also offered bank guarantee service to homebuyers and introduced special credit packages for companies in industries like textile and garment, hotel and serviced apartment, gasoline trading, air-ticket agents and pharmaceutical and medical equipment. The lender was an active consulting unit serving domestic corporate bond issues.

Lastly, VIB held on to a long-term and stable growth strategy focusing on three pillars of growth, productivity and risk control. By the end of 2015, the bank reached its earnings targets with VND1,162 billion in revenue and VND655 billion in before-tax profit.

The bank’s credit growth rate reached the ceiling level of 25%. It reduced the bad debt ratio to only 2.07%, well below the State Bank of Vietnam’s target of 3%.

VIB’s deposits reached VND53,304 billion, up 8.7% against the previous year. The bank’s total assets increased by VND84,412 billion, or 5%, compared to 2014.

Can Tho draws fewer int’t visitors last year

The number of international tourists to Can Tho City dropped last year as the Mekong Delta city lacks attractive tourism products and services.

Le Minh Son, deputy director of the Department of Culture, Sports and Tourism of Can Tho City, told a review meeting on Tuesday that about 207,000 international tourists visited and stayed overnight in Can Tho last year, down 6% compared to the previous year.

Son attributed the decline to a lack of distinctive tourism products and services, and to inadequate human resource and tourism infrastructure development in the city as the economic and tourism center of the Mekong Delta.

Despite the fall, overall tourist arrivals in Can Tho went up by 18% to more than 1.6 million last year. Son said the increase resulted from an upsurge in domestic visitors.

Some tour operators pointed out that Can Tho lacks entertainment venues at night for international visitors. More foreign tourists have opted to stay on Phu Quoc Island off mainland Kien Giang Province.

Last year, the city posted tourism revenue of over VND1.7 trillion (US$75.89 million), surging 49% compared to last year thanks to a strong increase in domestic tourist arrivals.

Son said Can Tho looks to welcome 1.7 million visitors this year, including 255,000 from abroad, and tourism revenue of VND1.8 trillion (US$80.35 million).

Exporters benefit from Vietnam- Korea FTA

Local enterprises have exported more to South Korea since a bilateral free trade agreement (FTA) between Vietnam and the Northeast Asian country went into force last December.

Pham Xuan Trinh, general director of Phong Phu Corporation, said the company has made good use of the FTA to export denim to the Korean market. Denim is among the products which are not easily exported as it is heavy, costs more to transport and requires short production time.

However, Phong Phu has met the requirements of Korea and its exports are rising, Trinh said.

In addition to garment, seafood exporters will benefit. According to the Vietnam Association of Seafood Exporters and Producers (VASEP), shrimp exports to Korea will enjoy favorable conditions this year as seven tariff lines on shrimp are removed under the FTA. In particular, the country will offer a zero tariff for 10,000 tons of shrimp from Vietnam in the first five years and 15,000 tons in the five following years.

Therefore, Vietnam’s shrimp has an edge over other ASEAN countries like Thailand, Indonesia and Malaysia. Korea provides a preferential tariff for only 5,000 tons from other ASEAN countries.

More Vietnamese seafood is poised to enter the Korean market owing to lower transport cost in comparison to some South American countries which send high seafood volumes to Korea. Besides, with the removal of import tariff, Vietnamese products will be more competitive.

Last year, Vietnam exported almost US$238 million worth of shrimp to Korea, down 25% against 2014, though this market remained the fifth biggest shrimp importer of Vietnam after the United States, Japan, the European Union and China.

According to VASEP, shrimp exports to South Korea will surge in the future following tax incentives pledged in the trade deal.

Exporters of other seafood products like squid and octopus will have the opportunity to increase shipments to Korea. Vietnam’s squid and octopus exports to that market amounted to VND163 million last year.

VASEP said Korea imports squid and octopus from 22 markets and that Vietnam is the biggest supplier, followed by Chile and Peru. Korea is Vietnam’s biggest importer of these products, accounting for 38% of the total.

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