Food export violations to Australia down by half

Last year, only 12 instances of Vietnamese food products failing to meet Australian standards were recorded, half the previous year’s numbers.

The Viet Nam Trade Office in Australia under the Ministry of Industry and Trade on Monday announced that Vietnamese exporters had not violated the export standards for food to Australia in December.

The Australian Department of Agriculture conducts quality checks of imported food products in batches in the same month to determine high or medium risks products for their people.

The violated batches are not allowed to be sold in Australia, while importers have to destroy or re-export the batches to the countries of their origin, under the supervision of the Australian authorities.

The subsequent batches from such exporters are checked to clarify if they meet Australian standards.

Vietnamese food products exported to Australia were reported to be safe from chemicals, contaminants and toxins after random check-ups. 

HN to conduct economic survey of municipality

The Hà Nội People’s Committee  has recently issued its 2017 economic survey plan for the municipality, where it will study the business sector, administration agencies, individual business units and religious bodies.

The authority will collect information of the former two groups starting March 1, 2017, while the latter two will be surveyed from July 1, 2017.

The areas of surveying include general information such as name, field of operation, ownership and operation model, in addition to labour information and wages, information on production such as asset, capital, cost and tax and contribution to the State budget. Also, investment fund, energy consumption and technological application are also subject to surveying.

The preliminary report based on a few main indications will be published in December 2017. The official results will be issued in the third quarter of 2018.

The comprehensive economic survey aims to review the amount of labour and production units, income and revenue, labour allocation and ownership, besides calculating the specialised statistics targets, gross domestic product and updating business data.

Tuyên Quang to hold investment conference next Monday

The northern province of Tuyên Quang plans to call for investment in 15 key projects during its tourism, trade and investment promotion conference, which will take place on February 27.

The information was released on Monday by director of the province’s Department of Planning and Investment Trần Văn Lương during a press briefing on the conference.

Lương said the key projects included Sông Lô Resort, Dùm Mountain eco-tourism, Nhữ Khê golf course and a project to produce safe vegetables using high technology.

Policies such as land rent exemption and corporate income tax reduction would be offered to projects in Lâm Bình, Na Hang and Chiêm Hóa districts, Lương added.

Vice Chairman of the provincial People’s Committee Nguyễn Hải Anh said the conference would be organised to inform investors about the potential and strength of the province, investment opportunities, as well as incentives available to domestic and foreign investors.

The conference will also be a forum for domestic and foreign entrepreneurs, investors and organisations to exchange ideas, share experiences and seek cooperation opportunities, thereby contributing to the socio-economic development of the province, he said.    

The province is committed to streamlining its administrative procedures to reduce the time companies spend on the process by 30 per cent to create an attractive and friendly investment environment for investors.

“The province will try its best to aid investors,” the vice chairman said.

On the occasion, the province will present investment certificates and sign investment agreements with some enterprises.

Vinalines wants to divest from Hải Phòng Port

The Vietnam National Shipping Lines (Vinalines) is seeking to reduce its ownership rate in the Port of Hải Phòng Joint Stock Company by 27.56 percentage points.

For this, it has already sought permission from the Ministry of Transportation.

Currently, Vinalines is holding 95.56 per cent of Hải Phòng Port company’s charter capital which stands at VNĐ3.27 trillion (US$145.3 million).

Since the equitisation of Hải Phòng Port company was completed, Vinalines has reduced its ownership rate by 2.12 per cent by conducting a debt-to-equity swap with the Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank).

Debt-to-equity swaps are common transactions that enable a borrower to transform loans into shares of stock, or equity.

According to the document sent to the ministry, Vinalines said that its plan of divestment from the Hải Phòng Port company was to create a financial source for the corporation to restructure its debts and implement development and investment projects.

Shares of the Port of Hải Phòng Joint Stock Company have been listed on the Hà Nội Stock Exchange under the code PHP.

In the end of 2014, Oman’s State General Reserve Fund (SGRF) expressed its willingness to purchase all the 29.68 per cent stake of Vinalines at the Hải Phòng Port through negotiation.

The transaction was planned to be done through the Việt Nam Oman Investments (VOI Fund) – a joint venture between SGRF and the State Capital Investment Corporation.

Nha Trang gets $16 million social housing project

The Housing and Urban Development Corporation (HUD) has started construction of a new US$16.2 million social housing project in the central coastal Khánh Hòa Province’s Nha Trang City.

The project spans an area of 1.8ha in the Phước Long new urban area, comprising of three 10-storey apartment buildings. Each apartment has an area of 59-66sq.m.

HUD, under the Ministry of Construction, is waiting for the provincial People’s Committee’s approval for the pricing plan of the project, with the average price of an apartment under VNĐ9.5 million per sq.m.

Located in the west of the city, the project is connected to regional residential areas, factories, universities, attracting a large number of citizens, students and workers who have high demand for affordable housing, especially housing with an average price that is below VNĐ10 million per sq.m.

At the project’s groundbreaking ceremony, Deputy Minister of Construction Bùi Phạm Khánh said the project, once completed, would meet the demand for housing of poor and low-income households currently living in Nha Trang City, creating favourable conditions for them to improve their living standards.

The Ministry of Construction has asked HUD to focus on the management of the project’s construction and quality and make ensure citizens get their new houses as scheduled.

According to Đào Công Thiên, vice chairman of the provincial People’s Committee, from now until 2020, Khánh Hòa needs 15,000 affordable apartments and, so far, it has implemented a total of 11 affordable housing projects with 5,733 apartments.

“Although the price, fluctuating at some VNĐ9 million per sq.m. seems reasonable, but in total, people have to spend VNĐ600 million to buy a 60 to 70sq.m. house, which may still be a strain for them. Therefore, investors, in the future, should consider building smaller apartments, such as from 30 to 40sq.m, to meet the demands of people from lower income groups," Thiên said.

Thiên added that Khánh Hòa Province will create favourable conditions for investors and solve any problems related to project development.

First WB-loaned hydropower plant put first turbine into use

The first turbine of the Trung Son hydropower plant, Vietnam’s first hydropower project with credit loaned from the World Bank, in the central province of Thanh Hoa has begun generating electricity for the national grid.

The Electricity of Vietnam (EVN) Group said it is among four turbines with combined capacity of 260 MW at the factory, located in Quan Hoa district.

The project is invested by Trung Son Hydropower Co. Ltd, a subsidiary of the EVN Power Generation Corporation 2.

When fully operational, the plant is expected to provide more than 1 billion kWh for the national grid each year and help to control flooding in the downstream Ma River.

Construction on the plant began in November 2012. The fourth turbine is scheduled to be put into operation in the second quarter of 2017, according to the Trung Son company’s website.

Wisepass app launched for spirit lovers

Startup firm Wisepass has launched a mobile app that allows member users to enjoy spirits and wines at low prices at food and beverage outlets in HCMC.

The app has been built for casual drinkers looking for new experiences. Wisepass said the app enables users to get one bottle every night at every eligible bar in HCMC for a total of VND6 million (around US$265) a month.

Wisepass buys spirits and wines from suppliers and distribute them to its users through the Horeca network of hotels, restaurants and cafes. The firm has clinched deals with 29 partners in HCMC and 121 members have registered for the app to gain access to 16 selected spirits and wines. 

In addition, the app helps the company collect data of the sector and spirits and wines whose sales are strong, as well as information about regular drinkers.

The information is important to firms in the spirit and wine sector and market research companies as well, said Tran Lam, co-founder of Wisepass.

Lam said users of the app are increasing and that VIISA has agreed to invest in Wisepass. The company is eyeing people who look for lunch at signature restaurants.

Pangasius demand to rise about 20% in 2017

The Vietnam Chamber of Commerce and Industry in Can Tho City (VCCI Can Tho) has predicted the demand for tra fish, or pangasius, would rise 20% in traditional and potential markets this year, the Vietnam News Agency reports.

Notably, pangasius products bound for Asian markets, especially China, are expected to be 1.5 times higher than the U.S.

The Vietnam Directorate of Fisheries has proposed the production plan for 2017, including the pangasius farming area of 5,000-5,500 hectares, output of more than 1.15 million tons, and export turnover of more than US$1.7 billion.

Nguyen Phuong Lam, deputy director of VCCI Can Tho, said the pangasius farming acreage has decreased lately, but productivity has increased and thus higher prices of material fish.

In 2016, the area under tra fish farming in the Mekong Delta shrank by 11% against 2015 to some 3,070 hectares, but output reached 1.08 million tons, up 5%, and productivity averaged out at 313 tons a hectare, up 10%.

In addition, the raw fish price has increased. In January of 2017, the raw fish price leapt to VND28,000 (US$1.23) a kilo compared to VND18,000-19,000 a kilo in the year-ago period.

Vo Thi Thu Huong, deputy secretary general of the Vietnam Pangasius Association (VN Pangasius), said the demand for oversized pangasius had edged up, especially of China.

In 2016, pangasius export turnover totaled US$1.7 billion, up 9.6% against 2015, with the U.S. and China being the biggest importers.

There are currently about 200 enterprises in Vietnam processing and exporting tra fish to 138 markets. The top three enterprises are Vinh Hoan, Bien Dong and Nam Song Hau.

VCCI Can Tho changes promotion tactic

VCCI Can Tho will take a new approach in trade and investment promotions by organizing smaller events tailored to the need of enterprises rather than staging large-scale programs, said Nguyen Phuong Lam, deputy director of VCCI Can Tho.

Formerly, the Mekong Delta was little known to potential investors, so big promotion events were organized to capture their attention. However, the region has become known to many enterprises now, so VCCI Can Tho will focus on medium and small investment promotions, Lam added.

To attract investors from Japan and South Korea, for example, VCCI Can Tho will run small conferences for just about 10 enterprises. Lam thought that it will be more effective if the organizer attends specifically to the enterprises’ demand.

SEZ law underway

The Ministry of Planning and Investment has embarked on the draft Law on Special Economic Zones (SEZ) after a long delay.

The impact assessment report on the draft of the law, also known as the Law on Special Administrative-Economic Units, was published by the ministry this Wednesday. It is remarked that the country’s economy is showing signs of slowing down, with low competitiveness, while natural advantages and resources have been stretched to their limits, and the investment environment has lost its appeal due to strong international competition.

Meanwhile, many other countries have successfully developed the models of “special economic zone,” “special administrative region,” “free city” and “smart industrial and high-tech city” with liberal mechanisms and policies and greater incentives since 1942. These models have become a development area with pervasive effects and motivation for the development of the whole economy.

Therefore, it is essential and urgent to develop special administrative-economic units in Vietnam with breakthrough administrative-economic mechanisms and policies, international competitiveness, shaping a new model of development dynamics with positive spillover effects on each region and the country.

The Politburo has given approval in principle to schemes to develop special administrative-economic units in Van Don (Quang Ninh), North Van Phong (Khanh Hoa) and Phu Quoc (Kien Giang).

The report informs the party committee in the Government and the Government itself have had four meetings and reached a consensus on suggesting the three special administrative-economic units above to the Politburo.

To build and develop the three provincially-governed special administrative-economic units Van Don, North Van Phong and Phu Quoc, a law on such areas should be drawn up in the coming time.

The report says the mechanisms and policies with outstanding incentives for special administrative-economic units will make specific contributions to economic growth, improve the added value of service and tourism, and help with economic restructuring.

From Van Don, the State may earn an estimated US$1.9 billion from tax and fee collections and US$2.1 billion from land charges. Businesses may generate US$9.7 billion in added value in 2021-2030, raising the per capita income to US$5,000 in 2020 and US$12,500 in 2030.

In North Van Phong, a special administrative-economic unit may pay US$1.2 billion in taxes and fees and US$1 billion in land-related charges for the State. Meanwhile, businesses here may create a total added value of US$10 billion between now and 2030, taking per capita income to US$4,000 in 2020 and US$9,500 in 2030.

As for Phu Quoc, the State may gain about US$3.3 billion from taxes and fees and US$19 billion from land charges here in the period from 2017 to 2030, boosting the per capita income to US$5,300 in 2020 and US$13,000 in 2030.

The draft impact assessment report will be passed around for comment at all ministries, central agencies and a number of localities affected by the policy. Additionally, input will be sought from the investor community, enterprises, business associations and people.

Investors await shares of fuel traders

Major fuel traders where the State holds a majority stake will likely begin offering their shares right in this quarter, a move which is much anticipated by investors.

The most noticeable name is Vietnam National Petroleum Group (Petrolimex), which has about 2,500 outlets across the country, and holds fuel market share of some 50%. It is very easy to understand why the shares of Petrolimex are being sought after.

Staff at some filling stations of Petrolimex in HCMC told the Daily they were waiting for their firm’s debut on the stock exchange to sell the preferential shares they had previously bought in the equitization of this unit. The price at that time was VND10,000 (for a limited number) and VND15,000 per share.

Petrolimex will officially debut on the stock exchange this year. All the necessary procedures are being performed.

Petrolimex chairman Bui Ngoc Bao has recently told Dau tu Chung khoan that, if the conditions are met, his company would trade its shares on the Hochiminh City Stock Exchange (HOSE) in the first quarter of 2017. The key condition here is the stake held by the State is pushed down to below 75%.

When its general meeting happened in late June 2016, 86% of Petrolimex shares were in the hands of the State, while strategic partner JX Nippon Oil Strategy & Energy was possessing 9.09%.

The Japanese investor had bought 103.5 million shares when Petrolimex issued additional shares at VND39,017 per share to spur its capital. The total amount collected by Petrolimex was nearly VND4.04 trillion.

Petrolimex launched its initial public offering (IPO) in July 2011, when the number of shares investors signed up for already exceeded the volume on offer. This demonstrates the appeal of this fuel market leader.

PetroVietnam Oil Corporation (PV Oil), the major fuel trader directly under Vietnam National Oil and Gas Group (PetroVietnam), is another name with new steps in their equitization roadmap this year.

As per a plan given at a review meeting in 2015, PV Oil would conduct its IPO before November 30, 2016. However, to this point, this has yet to be done.

At the review conference in December 2016, the leadership of PV Oil pledged they would launch the IPO this year, according to information on the website of PV Oil.

Last year, the consolidated revenue of PV Oil was estimated at VND34 trillion, 10% above the target.

The revenue of the parent company was nearly VND24 trillion, with a consolidated pretax profit of some VND530 billion. Around VND6.92 trillion went to the State budget, 21% higher than expected.

PV Oil currently holds the second largest fuel market share, with over 500 affiliated gas stations and thousands of agents.

Thuan Binh to invest US$2 billion in renewable energy

Thuan Binh Wind Power Joint Stock Company (JSC) has plans to undertake some solar and wind electricity projects with total capital of US$2 billion in the southeast coastal provinces of Binh Thuan and Ninh Thuan, and the Central Highlands between now and 2030.

Bui Van Thinh, chairman of the company, revealed the plan yesterday as Thuan Binh put the first phase of Phu Lac wind power plant into operation with a capacity of 24 MW in Phu Lac Commune, Tuy Phong District, Binh Thuan Province.

Worth more than VND1 trillion (US$47.8 million), the plant is connected to a 110-kV line connecting the two provinces to provide 59 million kWh of electricity a year. The company expects to recoup its investment in this plant in 10-12 years.

The company will raise its charter capital from the current VND240 billion (US$10.5 million) to VND450 billion (US$19.7 million) to finance its upcoming wind power projects with a total capacity of around 510 MW of wind electricity and over 570 MW of solar energy, Thinh said.

“We are in need of over US$2 billion to develop solar and wind power projects in the central provinces of Binh Thuan and Ninh Thuan, and the Central Highlands towards 2030. Especially in Phu Lac Commune, we will develop a 100-MW solar power project, and expect to turn the area into a green energy center,” he said.

The company has plans to take loans for these renewable energy projects from the German Development Bank, the Asian Development Bank, the World Bank, and financial support from Denmark.

The Government has released the National Electricity Development Plan for the 2011-2020 period with a vision towards 2030. The strategic priority of this plan is to boost the development of renewable energy, with wind power capacity targeted at 800 MW by 2020 and 6,000 MW by 2030.

However, the wind energy industry is still not appealing to investors as the current buying price is low.

Thinh of Thuan Binh Wind Power Joint Stock Company said the combined output of wind power projects nationwide for the national electric grid is around 160 MW compared to the country’s wind electricity potential of 10,000 MW.

“Inconvenient road and seaport infrastructure for transporting imported equipment has led the investment cost of wind power to rise to US$2 million per MW, which is higher than that of solar electricity with some US$1.2 million per MW,” he added.

This is the main reason why many wind power projects have been registered but investors have yet to start work. The selling price is now applied at 7.8 U.S. cents per kWh, and most investors are pinning high hopes that the Government will raise the price to 9.5 U.S. cents per kWh so that they can carry out their projects.

In related news, Ben Tre Province in the Mekong Delta where several wind-power projects have been registered have seen none of them getting off the ground due to the unattractive electricity price, said Pham Thi Han, deputy director of the provincial Department of Industry and Trade.

Han told a press conference held in the province yesterday that five investors have been awarded business certificates to build wind power plants in 11 locations in Ben Tre Province with total capacity of 150 MW.

“However, those approved projects are barely moving,” Han said.

Speaking to the Daily, Cao Van Trong, chairman of Ben Tre Province, said three coastal districts of the province with a total coastline of 65km have been zoned with 18 sites for building wind parks. However, those projects have been put on hold for years. 

Thanh Phong Clean Energy Corporation’s wind power project in Thanh Hai Ward, Thanh Phu District with investment of VND1,300 billion was licensed by Ben Tre authorities in September 2014 and was scheduled to test run phase one in December 2015. But now it still remains on paper.

According to Trong, the buying price of wind power in Ben Tre is 7.8 U.S. cents per kWh, too low for the investors to earn profit. “The investors expect a higher electricity price, at 9.6 U.S. cents per kWh as in nearby Bac Lieu Province,” he added.

Sharing the opinion, Han noted that the price of electricity on the market is lower than the investment cost.

Vietnam urged to improve product quality to benefit from EVFTA

Companies in Vietnam should be more committed to raising their product quality to meet requirements of the European Union in order to make the most of opportunities from a bilateral free trade agreement between the two sides, said Miriam Garcia Ferrer of the EU Delegation to Vietnam.

The first counselor and head of the economic and trade section of the EU Delegation to Vietnam made the urge at a conference on the impact of the EU-Vietnam FTA (EVFTA) on Vietnam’s economy and place in ASEAN in HCMC yesterday. The event was organized by the European Chamber of Commerce (EuroCham) in Vietnam in collaboration with the EU-Vietnam Business Network (EVBN).

The EVFTA is now in the process of legal review before the EU and Vietnam officially sign it. The trade pact is expected to come into force in 2018, paving the way for Vietnamese firms to boost exports to the European market of 500 million consumers owing to sharp tariff cuts and exemptions for many products.

However, Ferrer said tariff reduction is just one advantage and that Vietnamese businesses must meet technical and quality requirements of the EU if they want to bank on opportunities in the European market.   

She said Vietnamese firms still have time to study the requirements and improve their product quality before the EVFTA takes effect.

Provinces and cities should make preparations to make full use of the trade agreement to attract investors, experts said at the conference.

Ferrer said the conclusion of negotiations over the EVFTA would encourage other ASEAN countries to move on with a similar trade pact with the EU as they do not want to lose their competitive edge in trade with the EU. The EU has initiated FTA negotiations with a number of countries including the Philippines and Indonesia.

Bilateral FTAs with ASEAN countries will lay a foundation for the EU to reach an FTA with the whole bloc in the coming time, Ferrer said. She added the EVFTA could be a lesson for other ASEAN states to draw on.

ASEAN has captured the EU’s strong interest thanks to its population of 500 million. The EU had planned to work with ASEAN over an FTA in 2007 but later decided to proceed with a bilateral FTA with each member of the bloc, with negotiations with Singapore launched in 2010 and Vietnam in 2012. 

Speaking at the event, EU Ambassador to ASEAN Francisco Fontan highlighted the great momentum of EU-ASEAN relations generally and with Vietnam in particular. The EU has commenced a series of FTA negotiations with selected ASEAN countries in order to fully realize the market opportunities for EU companies.

“Among them, negotiations with Vietnam and Singapore have been successfully concluded. The EU and Vietnam remained two solid and reliable partners, opened for business, to ASEAN, and to the world,” Fontan said.

Michael Behrens, chairman of EuroCham in Vietnam, said in a statement that the EVFTA would have one year to enter into force.

“The potential of the EVFTA is clear, as its effective application can build on these good trade numbers between Europe and Vietnam and turn them into a long-lasting and ever progressing partnership, and ultimately into one of the most powerful intercontinental trade and investment corridors in the world. The EVFTA offers Vietnam the chance to link 500 million Europeans with more than 500 million ASEAN citizens, thus being at the center of a trade corridor for about one billion potential customers,” Behrens said.

Chris Humphrey, executive director of EU-ASEAN Business Council, pointed out Vietnam’s opportunity in ASEAN’s automotive industry with the EVFTA implementation given the country’s possession of low cost base, and increasing concentration of auto parts makers.

“The EVFTA provides Vietnam the potential to become one of the fastest growing car markets in the ASEAN region over the next 20 years as the Economist’s prediction. Yet challenges remain due to high levels of competition from Thailand and Indonesia or infrastructure and anti-congestion issues and so on urging Vietnam’s need to raise technical standards and increase local content for global export markets,” Humphrey said.

Vietnam’s iron & steel imports increase

According to the General Department of Vietnam Customs, Vietnam imported around 1.23 tons of iron and steels with its total turnover at over US$ 664 million in January, reducing 17 percent in volume but increasing 19.7 percent in value compared to the same period of last year.  

China and Korea are currently the first and second biggest iron & steel export market of Vietnam.

In January, the average iron & steel price imported from China costed US$ 505 per ton while the total volume of iron and steel from Korea increased 27 percent. Export turnover into Vietnam was also up to 54 percent compared to the same period of last year. 

It noted that the number of iron and steel which was imported from India, Brazil and the United Kingdom increased higher than compared to the same period of last year. 

According to Ministry of Trade and Industry, Vietnam’s iron and steel industry could meet demand of local market. However, they have to suffer consultatively competitive prices with same products of China. 

Therefore, in order to boost domestic iron and steel production, the ministry will continue assisting the domestic enterprises in balancing import-export turnover. 

Cashew output sees less than previous years

The harvest season of cashew this year is forecast to begin late around 1.5 months, reported the Vietnam Cashew Association (VINACAS).

The surveys in districts of Dong Phu, Bu Dang, Bu Gia Map and Phu Rieng, Binh Phuoc province showed that this year's harvest season will begin from the end of February to April because of an influence of unseasonable rain, deep fog and high humidity.

Cashew trees were inflicted with disease of Colletotrichum gloeosprioides and its leaves were completely destroyed by stinkbug. 

The agricultural experts forecast that the cashew output will also be less than previous years.

Hanoi Secretary urges for acceleration of metro projects

Hanoi Secretary Hoang Trung Hai on February 18 urged the Metropolitan Railway Project Management Board (MRB) to speed up the progress of the city’s metro projects, which have lagged far behind schedule.

The city plans to have 75 kilometres of metro tracks by 2020 and 94 kilometres by 2030 but such targets are unlikely to be met.

Secretary Hai insisted that even if these goals are achieved on schedule, Hanoi’s rail infrastructure will still be unable to deal with the pace of urban development and population growth.

Therefore, the city must make greater efforts to implement metro projects, especially those under construction, Hai said, confirming that the city will prioritise allocating funds for site clearance and construction.

In 2016 the MRB was assigned to manage two projects, Line 3 (Nhon-Hanoi Station) and Line 2 (Nam Thang Long-Tran Hung Dao), as well as prepare investment for two projects, which include the Line 3 extension (Hanoi Station-Hoang Mai) and Line 2 extension (Tran Hung Dao-Thuong Dinh).

Contracts for eight out of nine construction packages of Line 3 have been signed but construction has only reached 30% and the project is scheduled for completion in 2021, three years behind the original plan.

The largest obstacle to this project is site clearance, particularly in areas where the tracks and stations are underground.

For Line 2, out of a total 11.5 kilometres, three kilometres run underground, therefore the MRB is working with relevant agencies so that an adjusted plan will be approved in the first quarter of 2017.

Technical designs and contractor selection will be completed from the second quarter of 2017 to the second quarter of 2018 while construction will start in the third quarter of 2018.

Line 2 is scheduled for completion in 2024.

The MRB is also working to seek the National Assembly’s approval for Line 2 and Line 3 extensions.

Improving mechanisms to facilitate start-ups

In recent years, the number of working areas, technology incubators and business promotion organisations have witnessed significant growth, showing the necessity of fostering and developing start-up businesses.

According to the National Agency for Technology Entrepreneurship and Commercialisation Development (NATEC) under the Ministry of Science and Technology, there are currently seven State-owned technology incubators, with three incubators belonging to universities and 11 others operated by private or foreign organisations.

State-owned technology incubators have supported start-ups in terms of public services; however, due to the small number of them along with their short operating times, most of them are yet to be highly efficient, nor have they made a great influence on start-up enterprises. Furthermore, the technology incubators have only provided support activities related to working spaces, facilities and laboratories for product research and testing.

There is still a lack of financial support as well as suitable mechanisms to connect businesses. State-owned technology incubators usually do not rely on investments and instead provide supportive services in exchange for shares of enterprises.

Many experts believe that it is necessary to provide services and facilities to support start-up businesses from idea shaping to developing them into successful businesses.

More effective established incubators should be set up to link centres, research institutes, and universities with groups and individuals in an effort to create a business start-up environment to help new entrepreneurs overcome the initial difficulties and development issues.

The Government should have incentives for advanced technology business incubation establishments and incubated businesses such as long-term stable funding or preferential loans to carry out incubation, production and product testing, as well as favourable conditions to attract international donors and non-governmental organisations. Meanwhile, advanced technology business incubation establishments should strengthen mutual linkages.

Thai Binh to become first locality to start AgResults project

The northern province of Thai Binh will be the first locality to embark on the scheme “AgResults Sustainable Rice Farming and Greenhouse Gas Emission” between 2016 and 2021.  

The scheme, part of the AgResults project, aims to develop, test and spread the adoption of technological advances, tools and solutions to reduce greenhouse gas emission in rice cultivation, contributing to improving local livelihoods and protecting the environment. 

At a recent conference on the project, deputy head of the Ministry of Agriculture and Rural Development’s Cultivation Department Tran Xuan Dinh spoke highly of the project, especially amid Vietnam’s agricultural restructuring. 

The agricultural sector is aiming to reduce its greenhouse gas emission by 10 percent by 2020 and 30 percent by 2030. 

Tran Thu Ha, head of the AgResults Vietnam project, said the project’s first stage will last 1.5 years with two experimental crops from 2017 to the spring crop of 2018 while the second stage will last the next 2.5 years with four experimental crops. 

Vice Chairman of the provincial People’s Committee Nguyen Hoang Giang said Thai Binh boasts nearly 80,000ha of rice cultivation with average annual output of 13,100kg per ha. 

The move is expected to improve the livelihoods of about 75,000 households, cut 375,000 tonnes of carbon dioxide emissions and about 15 percent of production costs. 

The AgResults project was initiated in June 2010 to facilitate and award agriculture initiatives that leave sustainable impacts, promote food security, health and nutrition. 

Its total funding worth 122 million USD was sourced from the governments of Australia, Canada, the UK, the US and the Bill & Melinda Gates Foundation. 

The project is being implemented in Kenya, Uganda, Zambia, Nigeria and Vietnam, along with a global-scale scheme. 

The AgResults Vietnam is managed by the Netherlands Development Organisation.

Upgrade plan for Dien Bien Airport to be adjusted

The Ministry of Transport has instructed the Civil Aviation Authority of Vietnam (CAAV) to adjust the plan for Dien Bien Airport from 2017-2020, with a view to 2030, to submit for approval in June 2017.

Under the plan, Dien Bien Airport in the northern mountainous province of Dien Bien will be upgraded to receive A320/321 airplanes and serve more domestic and international flights. It is expected to ensure national security and enhance the socio-economic development and tourism of the province.

According to the provincial People’s Committee, Dien Bien Airport is currently only able to receive ATR72 airplane or below and lacks lighting and guiding systems.

Lai Xuan Thanh, Director of the CAAV said the upgrade will draw more airlines to Dien Bien Airport, bringing foreign visitors to historical and cultural destinations in Dien Bien and adjacent localities.

Vietnam helps Laos develop agriculture

Construction on an agricultural service centre, the largest agricultural cooperation project between Vietnam and Laos, began in Laos’s northern Houaphan province on February 18. 

The agreement on the project’s investment was reached between the two sides during the 36th meeting of the Laos-Vietnam Cooperation Sub-committee in Vientiane in 2013. 

The project aims to enhance agricultural development and technical knowledge for farmers, towards improving living standards. 

Covering an area of 12 ha in Ong village, Sam Nuea district, the centre has total investment of 43.6 billion VND (over 1.91 million USD), including 39.4 billion VND (over 1.73 million USD) funded by the Vietnamese Government. 

As part of the project, Vietnam will help Laos to train agricultural staff and farmers. 

Eight training courses are expected to be arranged for more than 200 agricultural staff and farmers of Houaphan province, and fruit tree cultivation and cow and chicken breeding models will also be built.

Lao staff will be sent to Vietnam to learn about agricultural development. 

The centre is set to be completed and put into operation in 2018.

Vietjet receives IATA membership

Vietjet on Saturday received full membership of the International Air Transportation Association (IATA), affirming the new-age carrier’s role and position in domestic and international aviation communities.

Prior to attaining membership, Vietjet had been certified by the IATA Operational Safety Audit (IOSA).

IATA, the most professional, consistent and comprehensive voice of the international aviation industry, actively seeks to support and increase benefits for all airline members through international recognition, orientation for industry priorities, encouragement for promotion and innovation in the industry, cost management and cooperation campaigns for communication, training and other services.

On the same day, Vietjet also got investment approval from the People’s Committee of HCM City to develop its aviation technology centre in Sài Gòn Hi-Tech Park. The centre is located on a 5.54 ha area at the R&D Training and Incubation Zone – the ‘heart’ of the park.

The project, as part of a program to develop the Vietjet Aviation Academy in Sài Gòn Hi-Tech Park, will break ground in March and go into operation later in December. Its first phase will be a full flight simulator centre for pilot training, being run in co-operation with aircraft manufacturer Airbus.

PM sets bar high for shrimp exports

The Ministry of Agriculture and Rural Development (MARD) has set a shrimp export target of US$10 billion by 2030.

However, Prime Minister Nguyễn Xuân Phúc disagreed with this, saying the target is too low and can be reached by 2025.

He went on to say that Việt Nam should become the world’s shrimp production base.

But analysts are divided on this.

Some said reaching $10 billion even in 2025 would be difficult since the agriculture sector faces many challenges like the small, household scale of production, climate change and international integration.

Besides, global seafood exports now are worth around US$130 billion, with shrimp accounting for only around 10 per cent or $13 billion, they said.

According to the Food Agriculture Organisation of the United Nations, the exports are growing at an average rate of around 15 per cent a year.

But in reality, it will not be easy to achieve the 15 per cent growth rate.

Even if it is achieved the global trade in shrimp will only reach $30 billion by 2025.

For Việt Nam to achieve the $10 billion export value by 2025, it would have to both increase shrimp output and value addition of shrimp products.

Experts calculate that if the added value of shrimp is doubled by 2025, the country would earn $6 billion from exports.

For the $4 billion remainder, it would have to produce an additional 1 million tonnes of shrimp.  

Last year shrimp exports were worth $3.1 billion. To achieve this, the country had to produce 650,000 tonnes.

Việt Nam might be able to produce an additional 1 million tonnes of shrimp, but almost certainly cannot double value addition because its companies already process shrimp using advanced technology.

Lê Văn Quang, chairman of the Cà Mau-based Minh Phú Seafood JSC, said his company has set a target of exporting $2 billion worth shrimps by 2021.

It is a feasible plan since the company plans to make major changes to production, marketing and technology application, according to the chairman.

PM Phúc said if Minh Phú alone could export $2 billion, Cà Mau Province’s total exports could be $4 billion and the remaining $6 billion could be managed by other provinces and cities, and the $10 billion target could be achieved by 2025.

Some analysts concurred with Phúc, saying Việt Nam’s shrimp industry has all the conditions necessary to develop and become the world’s shrimp production hub.

But they hastened to point out that the country needs to step up investment in infrastructure for shrimp farming and processing to boost productivity as well as value addition.

Now a full 70 per cent of costs in shrimp production goes towards feed and medicines, most of which are imported.

Moreover, processors import 17 per cent of the shrimp they require.

Increasing the value of Vietnam’s fruit specialties

In 2016, Vietnam, for the first time, earned nearly US$2 billion from exporting vegetables and fruits with the Mekong Delta being the main contributor.

The turning-point opened a new direction for the restructuring of Vietnam’s agriculture whose key export items will include rice and fruit specialties.

During the early days of 2017, mango growing cooperatives in Dong Thap province invited foreign businesses and domestic exporters to come to scout cooperative opportunities.

Huynh Thanh Ba, Deputy Director of the My Xuong Mango Cooperative, said that selling prices are higher and more stable thanks to the production of safe farm produce.

Ba says My Xuong cooperative and many other producers are producing qualified products that meet the standards of demanding import markets. 

“Local farmers have tried to export 70% of their total output, selling the rest to the domestic market. If they hit this target, they will have a stable income and can get rich”, he added. 

Last year, 74% of Vietnam’s total vegetable and fruit export revenue come from the Mekong Delta. The region’s blue dragons, longans, watermelons, and mangoes have conquered demanding markets including Japan, the US, France, the Netherlands, Belgium, Germany, Australia, and the Republic of Korea.

Our fruits fetch high prices. Cat Hoa Loc mangoes, for example, sell for up to US$12 each at the Japanese city of Fukuoka’s fruit auction”, said Professor Vo Tong Xuan, a leading Vietnamese agronomist. 

Le Minh Hoan, Secretary of the Party Committee of Dong Thap, the leading province in agricultural restructuring, said that if the quality of input materials is well controlled, Vietnam’s future revenue from vegetable and fruit exports could double or even triple over 2016.

“It’s not easy to penetrate a market, but it’s even harder to keep it. Vietnamese farmers and cooperatives should keep the trust of customers and think of long-term business and farming targets. Enterprises should guide farmers”, Hoan said.

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