No shortage of gasoline supply 

Vuong Thai Dung, deputy general director of Vietnam National Petroleum Corporation (Petrolimex), which accounts for 60 percent of the gasoline market share, said on December 20 that there was no shortage of gasoline and all the gas stations that belonged to the company are fully supplied.

However, he admitted that the gasoline business is currently facing a number of difficulties. These include high foreign exchange rates and high global gasoline prices, which are causing a loss of VND2, 000 per litre to each business.

“Despite many difficulties, we are trying to overcome theses issues and to ensure that there will be ample supplies of gasoline,” Mr. Dung said.

Earlier, after information that some gasoline agencies had to close due to a shortage in supply, deputy minister Nguyen Cam Tu of the Ministry of Industry and Trade affirmed that the ministry would ensure adequate gasoline supplies, until the end of the first quarter of 2011.

The amount of gasoline imported in December accounts for 30 percent of the total amount for the whole year. The Dung Quat Oil Refinery is now running at full capacity.

In addition, the State Bank of Vietnam has pledged to ensure foreign currency supply for firms that import gasoline, until the end of first quarter of 201.

Moreover, to prevent any speculation on gasoline prices, the Ministry has ordered the Market Control Department to intensify their inspection of gas stations and to punish any businesses that break the regulations.

Border smuggling surges at year end 

Illicit trades in various kinds of goods are on the rise at many border gates in two northern provinces of Quang Ninh and Lang Son at yearend, according to Sai Gon Giai Phong newspaper’s investigation.

A man named Thai, who is a middleman to local smugglers in Quang Ninh province, introduced Sai Gon Giai Phong newspaper’s reporters to many places supplying smuggled goods, including cloths, fabric, blankets and home appliances.

“We have everything you need. We can even make fake products of popular brand names in Euro and Japan in around half of a month. All you have to do is give me the samples,” Thai said.

“I can ensure only the central government’s assessment units can detect the fake products,” he said, replying questions about whether consumers and relevant units could recognize the fake goods.

“I have many good suppliers for smuggled restroom furniture, which help you make big bucks. For examples, price of a shower rose is at an average of VND1 million (US$50) in the domestic market, while I offer you a price of VND200,000 for a similar one,” Thai said.

Thai said contraband goods from China were being brought at night to avoid Chinese custom officers. “Smugglers should speak both Chinese and Vietnamese fluently to keep the shipment delivery passing through border gates smoothly,” Thai noticed, adding he can arrange illicit trades from A to Z, including hiring transporters, trading with Chinese suppliers and finding warehouses.

“If buyers want to buy goods in a specific date during the time the Chinese custom enhancing border supervisory, smugglers will ask importers to carry their goods through the border gates. The importers then get permission by bribing custom officers,” Thai disclosed.

He also introduce the reporter to a Chinese supplier named Trieu Hung, who is an owner of a big shop in Dongxing District of China’s Guangxi Province and can speak Vietnamese pretty good. As the reporter said he wanted to be a goods distributor in Hanoi, Hung suggested staying at Guangxi Province for three months at least to survey on the local market.

“There is a market 800 kilometers far from Dongxing District, where traders from ASEAN countries and even the rest of the world can find a huge amount of goods,” he said.

Hung said he was distributing car accessories and plastic toys to around 19 dealers in the port city of Hai Phong, Quang Ninh province and even Hanoi. He is also the main equipment supplier to popular discotheques in the norther provinces.

“If you can ‘take care’ of Vietnam’s custom, I’ll be your main supplier. Otherwise, I’ll help you to transfer goods through Mong Cai border gate,” Hung said, adding he can supply as many as customers need as he owns lots of stores.

Hung said most of traders in Dongxing Province set up warehouses to supply for Vietnamese smugglers specifically.

3 VN banks provide steel producer Hoa Phat with $75 mln loan 

Hoa Phat Group, Vietnam’s biggest listed steel producer, has signed a syndicated loan for VND1.5 trillion (some US$75 million) with three Vietnamese banks to develop its steel complex, stage two, in northern Vietnam.

The Asia Commercial Bank (ACB), VietBank and Dai A Bank inked the seven-year financing deal with Hoa Phat on Dec. 17 in Hanoi, where the group is based. ACB acts as the head in this consortium financing.

A Hoa Phat representative said this syndicated loan marked a new step in the partnership among the two sides, paving the way for forthcoming projects between the group and the three banks.

The Hoa Phat Steel Complex, located in Kinh Mon District, Hai Duong Province, finished its VND5 trillion first stage this June, having supplying more than 232,000 tons of steel products so far. The second stage, which requires half of the first-stage investment, would increase the complex’s designed capacity to one million tons a year.

Hoa Phat Group earned VND12.8 trillion (US$609.5 million) in the first 11 months of the year, an increase of 56 per cent over the same period last year and exceeding its target for the year by 4%.

The corporation posted a profit of VND1.2 trillion ($57.1 million) during the period, representing 91 per cent of the year’s target.

Hoa Phat is currently building its first property complex on Giai Phong Street in Hanoi, which will contain offices for leasing and luxury apartments. The complex is set to open in March 2012.

ACB, VietBank and Dai A Bank are among major financial institutions in Vietnam. ACB came second in the VNR500’s private business ranking this year. VNR500 is an annual list of Vietnam’s 500 biggest companies ranked based on their turnovers, selected by VietNamNet online newspaper and Vietnam Report, a company specialized in company evaluation.

Gold and dollar decline   

The price of gold in Vietnam slightly fell by VND100,000 a tael (1.2 ounces) over the previous day on December 21 though global prices advanced in both trading sessions in the US and in Asia.

Most gold shops bought the metal at VND35.85 million and sold around VND35.95 million as of 9 am local time.

Sacombank Jewelery Company bought gold at VND35.86 million and sold at VND35.92 million.

Meanwhile, Hanoi-based Phu Quy Jewelry purchased SJC-brand gold at VND35.86 million and sold at VND35.96 million.

Gold was contained around VND36 million a tael as buying demand weakened. In addition, the US dollar exchange rate on free market no longer strongly escalated. Dollars, which started to sink last afternoon, were bought at VND21,080 and sold at VND21,120 this morning, down VND60 per dollar over the previous day.

Internationally, gold advanced as concerns over a spreading European sovereign-debt crisis and escalating tensions on Korean peninsula spurred the demand for the precious metal as a store of value.

Gold for immediate delivery climbed as much as $10.3 an ounce, or 0.8 percent, to close at $1,386.8 an ounce on the Comex in New York.

In Asia, gold kept rising this morning. Spot gold was trading at $1,388 an ounce as of 9:55 am Vietnamese time.

However, a strengthening US dollar remained a barrier to the metal’s advances. The euro exchange rate against the greenback stayed below $1.32 a euro in Tokyo this morning.

Crude oil futures for January settlement rose as much as $0.79 a barrel to close at $88.81 a barrel on the New York Mercantile Exchange.

This morning, crude oil surged to trade around $88.9 a barrel.

96 businesses win National Quality Award 

Ninety-six businesses will be presented with the National Quality Award for their achievements in increasing product quality and building trademarks, announced the Ministry of Science and Technology on December 21.

Ngo Quy Viet, Head of General Department of Standardisation, Measurement and Quality, said the event this year drew the participation of 173 businesses. The assessment and selection were carried out at provincial and national levels.

The assessment was based on such criteria as the contribution of leadership, strategy definition, setting trends for customer and market, measurement, analysis and management, human resources development and turnover.

The maximum amount of points for all criteria was 1,000 and to qualify for the selection, businesses had to have 600 points and above.

The National Quality Award is an annual event and has been organized since 1996. So far, 1,303 businesses were awarded and 62 businesses were offered certificates of merit by the Prime Minister.

Since 2000, Vietnamese businesses have been participating in the International Asia Pacific Quality Award. By 2010, 42 businesses have been granted the award.

The award-giving ceremony of the National Quality Award will be held in Hanoi at 10am on December 26 and be broadcast live on VTV1 channel.

Denmark provides US$23 million to develop Vietnamese businesses

Demark will grant US$23 million in non-refundable aid to help develop Vietnamese businesses within the framework of the Business Sector Programme Sector (BSPS) and Private Sector Development Programme (PS).

The commitment was made at the ceremony when a cooperative agreement was signed to support the development of Vietnamese businesses in the 2011-2013 period.

Signatories were Minister of Planning and Investment Cao Viet Sinh and Danish Ambassador to Vietnam John Nielsen.

Addressing the ceremony, John Nielsen said that the signing of the agreement will make an important contribution to helping Vietnam carry out the modernization and industrialization process as well as economic development after joining the World Trade Organisation.

The programme will continue to support Vietnam’s economic development with the private sector playing the leading role. The programme will also help the application of new technologies in small-medium enterprises (SMEs), improve national system of labour safety and hygiene as well as raise public awareness about SMEs through economic research.

Under the BSPS & PS programme, the Ministry of Labour, Invalids and Social Affairs and the Central Institute for Economic Management (CIEM) have been chosen as the main partners to promote the results gained in the cooperation process with Denmark in the 2005-2010 period.

Vietnam - US trade turnover on the rise

In the first 10 months of this year, the import and export output between Vietnam and the USA reached nearly US$15.3 billion, an increase of 20 percent over the same period last year, announced the US Department of Commerce.

Of the total, Vietnam’s exports to the USA reached US$12.3 billion (up 20.3 percent). Vietnam is ranked as the 26th exporter to the USA.

The highest output comes from garment export with US$5 billion (up 16 percent), followed by the wooden furniture with US$1.5 billion (32.8 percent) and footwear with US$1.35 billion (23.3 percent).

Agricultural products export output increased by 35.5 percent to reach US$719,500 while seafood exports reached US$666,700 (up 20.7 percent).

Vietnam’s import from the USA reached US$2.97 billion, an increase of 19.2 percent over the same period of 2009. These include mainly vehicles, woodwork, manufacture equipment and cattle food.

Especially, the amount of cattle food imported from the USA has increased dramatically by over 152.7 percent, exceeding other US products imported to Vietnam, due to its quality and competitive price.

Vietnam promotes tourism in Malaysia 

The Vietnam National Administration of Tourism (VNAT) and the Vietnamese Embassy in Malaysia held a gala night on December 20 to promote Vietnam’s tourism in Kuala Lumpur.

This is part of the national programme to promote tourism activities for 2011, focusing on Malaysia and Singapore in the Southeast Asia region.

The programme aims to thank Malaysia’s tourism sector as well as its tourists for their active support Vietnam in recent time. The gala night also offered an opportunity for Malaysians to find out more about Vietnamese people, culture and potential as well as privileges offered to tourists.

At the opening ceremony, Le Thi Hoang Cuc, Minister Counselor of the Vietnamese embassy in Malaysia emphasized that the embassy has always supported tourism promotion programmes to reveal Vietnam’s hidden charms and helped strengthen mutual understanding of cultures, histories and traditional customs.

Pham Quang Hung, Head of the International Cooperation Department under the VNAT said that Malaysia is now the leading tourism market in the ASEAN. Next year, Vietnam will focus on tapping on Malaysian and Singaporean markets which shares many cultural and geographical similarities with Vietnam.

This year, Vietnam has welcomed around 5 million international visitors and aims to attract visitors in 2011. However, Mr Hung said that in order to do that the country’s tourism services and staff qualifications should be further improved.

During the event, representatives from Vietnam’s tourism companies have an opportunity to meet with Malaysian companies to learn more about their development policies and products.

Brazil considers anti-dumping investigation on imported shoes

The Brazilian Footwear Industry Association (Abicalçados) is preparing a dossier demanding expansion of anti-dumping investigations into the imports of shoes with detachable parts to the country.

The Vietnam Trade Office in Brazil says Abicalcados President Milton Cardoso has expressed his concern over Brazil’s footwear import growth over the past 11 months from Asian countries such as Indonesia, Malaysia and Vietnam.

Milton Cardoso says many Asian export businesses have sold separate shoes, including soles and tops imported from other countries, which have adversely affected 5,000 Brazilian shoe makers.

Tourist to Hanoi rise 16pct

Hanoi has received 1.2 million foreigners and 10.6 million Vietnamese in 2010, a year-on-year increase of 16 percent, thanks to its successfully organising the 1,000th anniversary and National Tourism Year.

Hanoi plans to have 11.8 million to 12 million Vietnamese visitors and 1.8 million to 2 million foreign ones in 2015.

To achieve the target, Mai Tien Dung, Deputy Director of the Municipal Department of Culture, Sports and Tourism, said that the city must make full use of natural resources, cultural and historical relics and diversify tourism products. It should combine tourism development with natural resource and environment protection, improve the quality of services, and develop human resources.

Dung added that the city should also increase investment in infrastructure, strengthen promotion activities, improve environmental sanitation and transport systems and complete a master plan for tourism development by 2020 with a vision for 2025 and detail plans for specific destinations.

Phu Yen calls for investment in 24 large projects

A conference on trade promotion was held by the management board of the Phu Yen economic zone on December 20.

At the conference, the management board called for investment in 24 key projects including upgrading Tuy Hoa airport to meet 4C standards, building a highway linking Tuy Hoa airport to Da Dia waterfall and combining aquatic production with eco-tourism in the lower reaches of the Ban Thach river.

Businesses pledged to invest in some large projects in Nam Phu Yen economic zone and Dong Bac Song Cau industrial park.

Pham Dinh Cu, Chairman of the Phu Yen Provincial People’s Committee, handed the investment licenses to the Hiep Hoa Phat company, the contractor of Hoa Tam industrial park with a total capital of VND10 trillion.

Biggest bonded warehouse inaugurated in Central Highlands

The Vinacafe bonded warehouse, the biggest in the Central Highlands, was inaugurated at the Hoa Phu industrial park, Dak Lak province on December 20 in the presence of Deputy Minister of Agriculture and Rural Development Diep Kinh Tan.

The Vinacafe bonded warehouse was built in late July 2009 on 17 ha with a capacity of more than 300,000 tonnes of goods and a total investment capital of VND307 billion.

The bonded warehouse will help to boost export-import of farm products, materials and equipment for production in the Central Highlands while creating favourable conditions for businesses to assess export goods and seek outlets for key products in the region such as rubber, coffee and pepper.

Currently, the Tay Nguyen Coffee Export-Import Investment Joint Stock Company- the bonded warehouse’s managing unit, is offering incentives for people and businesses wanting to bond their goods by launching preferential programmes for credit loans and warehouse costs.

Crown Plaza Complex built

The Crown Plaza Complex has been built on Le Duc Tho Street in Hanoi by chief investor Tran Hong Quan Trade Company. 

The complex covering on more than 13,000ha was invested with US$70 million. It will consist of a 393 room-hotel, residential areas with 136 flats, and a 23- storey official building. The complex was designed and built according to the five star standards of the world’s leading hotel management group – InterContinental Hotels Group (IHG).

Vice Director of the Tran Hong Quan Company, Le BIch Thao, said once the complex is put into operation it will meet the increasing accommodation demands of tourists, foreign investors, international diplomatic corps, and countries’ leaders who will visit or attend meetings and conferences in Vietnam.

Building Vietnamese statistics collection strategy

Domestic and foreign experts gathered at a seminar on building a Vietnamese strategy for development of statistical data collection in the 2011-2020 period in Bac Ninh on December 20.

Participants said statistical development strategy will provide a framework and a practical action plan for building statistical ability to meet data demands at present and in the future. They said one of the important tasks in building the strategy is to identify the position of Vietnamese statistics on the regional and international map, as it will be an important foundation for outlining the vision for the statistic sector by 2025.

According to the World Bank’s survey on statistical ability in 145 low and medium income countries, Vietnam ranks 77. On the world statistics map, the country’s capacity is average while in the East Asia and Pacific region, it ranks 8 out of 21, above even China. However, the country ranks seven out of nine in ASEAN.

The country’s statistic index reduced by 10 points in 2010 compared to 2004.

Tra breeders to give opinions on WWF criteria

Vietnamese associations and the World Wide Fund for Nature (WWF) recently signed a long-term cooperation memorandum of understanding (MoU) to help Vietnamese tra fish products earn the Aquatic Stewardship Council (ASC) certified credit label.

Under the MoU, the WWF will give presentations on ASC criteria for tra breeders for six months and then collect opinions from experts and Vietnam’s tra breeders. WWF will take responsibility for covering the funding for these presentations. After surveys have been collected, if WWF criteria are suitable to Vietnam’s context in tra aquaculture, farmers will breed tra fish under these criteria.

Vietnamese signers included the Vietnam Association of Seafood Exporters and Producers (VASEP) and the Vietnam Fisheries Society (VINAFISH). Nguyen Tu Cuong, the standing committee member of VINAFISH, said application of ASC certification depended completely on whether WWF criteria apply properly to Vietnamese tra breeders or not.

“Six months is the necessary period for tra breeders and related parties to learn about and give opinions on ASC standards. Vietnam’s tra breeders will only apply these criteria when they know clearly what the ASC is and whether the ASC is necessary for them or not,” he said.

Currently, Vietnam’s tra breeders are raising tra fish under the Code of Conduct (COC) from the Food Agriculture Organisation.

First Forestry Festival to be held in Vietnam

Vietnam’s first timber and forest product festival will be held in Quy Nhon City, Binh Dinh province from March 26-29.

So far 12 provinces and cities, 125 businesses planning 350 stalls, consulates and businesses from the Netherlands, the UK, France, Japan, China and Russia as well as other international organisations have all registered to take part in the event.

The information was released at a press briefing in Quy Nhon City on December 20 by the Ministry of Agriculture and Rural Development, the Ministry of Industry and Trade, the Ministry of Information and Communications, the Ministry of Culture, Sports and Tourism, the Vietnam Timber and Forest Product Association, the Binh Dinh provincial People’s Committee and the Dat Vo Media and Advertising Company. 

During the festival, there will be a Vietnamese timber and forest product exhibition, a Vietnamese ornamental plant festival, two seminars on forestry, trade promotion activities, and a ceremony to honour outstanding people in the forestry sector and present forestry Guinness records. There will also be outdoor art performances, a cultural and cuisine festival, a drawing contest, a photo exhibition on forest protection, and a badminton tournament for timber and forest product businesses.

Vietnam earned US$310 million from timber exports in November 2010, up 29.56 percent against November 2009, and bringing the total export value in 11 months to more than US$3 billion.

Vietnam urged to remove obstacles in infrastructure

In the next five to ten years, Vietnam will need around US$70-80 billion to upgrade its infrastructure which is considered one of the main tasks to improve its competitive edge in the region and to further integrate into the international economy.

In 2010, Vietnam has been successful in transitioning from a low-income country to a middle-income country by fullly tapping domestic advantages and improving business environment for both local and international investors. However, Vietnam still faces challenges in terms of infrastructure, which has a negative impact on businesses’ operations.

Hank Tomlinson, President of the American Chamber of Commerce in Vietnam said that there were still shortcomings to the development of Vietnam’s infrastructure, especially in building roads linking to provinces and cities, bridges as well as strategic roads near seaports. This has negative impact on direct foreign investment in the country as these limitations are the reason why many US investors do not want to invest in Vietnam.

One specific limitation is high transportation costs. According to businesses, transportation costs in Vietnam now accounts for a higher proportion of GDP than in other nations in the region. For example, these costs make up 13 percent of GDP in Indonesia and Malaysia, 18 percent in China while it is 25 percent in Vietnam.

Maersk Line Vietnam & Cambodia General Director Peter Smidt-Nielsen said that there are many reasons why transportation costs in Vietnam are higher. However, it is obvious that poor infrastructure is an important factor including traffic jams, lack of transparency and forecast, and backward means of transportation which often do not meet the regulations on weight limit.

To solve these issues, Vice President of the Australian Chamber of Commerce, Brian O’Reilly said that Vietnam should pay attention to the Public-Private Partnership model which will make important contribution to improving infrastructure in Vietnam. In addition, it is necessary to improve administrative formalities, especially those related to infrastructure projects and contracts.

Vietnam has been successful in improving access to infrastructure services over the past 20 years. However, many things need to be done to improve the country’s competitive edge and remove obstacles to the further growth of the national economy. As Vietnam continues to make progress in developing its economy, it is also necessary to continue to adjust policies and institutions accordingly, said deputy minister of Planning and Investment Dang Huy Dong.

According to international surveys, although Vietnam has made major development achievements, it has not resolved issues of infrastructure effectively. This has become the biggest hindrance in improving Vietnam’s business environment. Removing this obstacle will allow Vietnam to continue toward a positive and sustainable economic growth rate and the realization of its goals in the next decade.

PV