S Korea's Shinhan Bank opens HCM City branch

South Korea's Shinhan Bank Viet Nam opened a branch named An Dong in the southern city's District 5 yesterday.

This is the first of the four new units the bank plans to open in Viet Nam this year, with the other units expected to be located in the north in Ha Noi, Hai Phong and Thai Nguyen.

Shinhan executive Heo Young Taeg, said the branch would serve both institutional and individual customers and provide "a full range of services", including deposits, lending and card issuance.

The bank is an affiliate of the Shinhan Financial Group and is based in Seoul. It has been active in Viet Nam for 22 years and is headquartered in HCM City's District 1. Shinhan Bank Viet Nam has a charter capital of nearly VND4.55 trillion, or US$210 million.

Viet Nam's trade surplus with Australia hits $718m

The export and import turnover between Viet Nam and Australia reached US$718 million in the first two months of 2015.

Of these, Viet Nam's export value to Australia was $445 million, while its import value was $273 million.

However, last year's figures were higher with export value of $491 million and import value of $296 million.

The decrease was attributed to the decrease in exported crude oil prices in the beginning of this year. Crude oil export volume increased in the first two months, while export value decreased by nearly 50 per cent.

ATM to be built on developing island Ly Son

The Agriculture and Rural Development Bank of Viet Nam (Agribank) will build the first Automated Teller Machine (ATM) on Ly Son Island.

Vo Phu Tai, director of the Ly Son Agribank branch, said the bank will pay VND500 million (US$24,000) to set up the ATM, starting next month.

The island, 30km off the coast of the central province of Quang Ngai, is home to 21,000 islanders and often used as a summer holiday vacation spot. It connected with the national power grid and internet last year.

Earlier this month, the island debuted its first public taxi service.

HCM City focuses on key industrial sectors in economic shift

HCM City’s Stimulus via Investments programme is successfully resolving financial difficulties for enterprises and contributing to restructuring the industrial sector, according to industrial officials.

From 2009 to 2014, HCM City approved 209 projects for its stimulus programme with a total investment capital of 17.6 trillion VND (820 million USD), 8.47 trillion of which will be loaned at a discounted interest rate.

The city has consistently given priority to projects in four key industries, helping raise their proportion in the entire industrial sector from 54 percent in 2006 to 59.4 percent in 2014.

Specifically, mechanics constitutes 19 percent, electronics-information technology 4.1 percent, chemical-plastics-rubber 19.2 percent and garments and textiles 17.9 percent of total industrial production, according to statistics from the city’s Industry and Trade Department.

Many experts noted a marked shift in the structure of the city’s economy in recent years, with high-tech manufacturing projects replacing labour-intensive projects.

Regarding the city’s economic restructuring project for 2013-2020, the department recommended that the city focus on core industrial sectors and especially on the quality of growth and the competitiveness of products.

Besides the four key industries, the city should invest in support, clean and energy-saving industries, it said.

In addition to providing prompt assistance in administrative procedures, legal issues, capital and technology, the city needs to encourage enterprises to take advantage of local resources such as workforces, technology, materials and equipment to reduce the import surplus.

Huynh Van Minh, President of the HCM City Union of Business Associations ( HUBA ), said the city also needs to improve the enforcement of mechanisms and polices and ensure that new regulations suit the actual production and business conditions.

HCM City is currently operating 15 processing and industrial zones and intends to add nine others by 2020, bringing the total area to 6,156 hectares.

Vietnam is prioritising its cooperartion with Australia in sustainable mineral exploitation, as the latter boasts a rich seam of experience in safe mining that can limit environmental damage and benefit the community.

Addressing a forum in Hanoi on March 19, Minister of Natural Resources and Environment Nguyen Minh Quang said the Vietnamese Government always pays due attention to sustainable economic development.

The Prime Minister has recently approved a strategy integrating mineral exploration and exploitation with effective processing and utilisation through 2020 and with a vision to 2030.

The strategy also aims to strike a balance between mineral exploitation and reservation, develop the mineral industry in a sustainable fashion and in line with environmental protection and national security and defence policy, Quang said.

To realise this, Vietnam has been actively strengthening cooperation with international partners, including those from Australia , to acquire modern technology for surveying, exploring, and exploiting minerals.

The forum, the first of its kind in the field, creates a good chance for mineral management agencies and businesses to exchange experience in sustainable mineral exploitation, environmental protection, and effective management of mineral resources, the Minister said.

Layton Pike, a representative from the Australian Embassy in Vietnam , said Vietnam is an important partner of his country, particularly as a leading member of the Association of Southeast Asian Nations (ASEAN).

The two countries share many mutual interests, such as the development of energy safety, he said, adding that the forum will help increase capacity and long-term cooperation among businesses.

According to Dr Nguyen Van Thuan, head of the Ministry's General Department of Geology and Minerals, Vietnamese mineral resources are diverse, ranging from oil and gas to coal to metal.

However, the reserves are not big and remain uneven in some mining areas, he said, adding that it is necessary to implement a policy ensuring mineral resources are utilised efficiently to bring about sustainable economic development without causing any lasting damage.

Quang Tri introduces business opportunities to Thai firms

More than 70 Thai enterprises were briefed on potential investment opportunities at a conference held by the central Quang Tri province People’s Committee.

The conference, taking place on March 18 in the capital city of Dong Ha, aimed to provide Thai companies with a comprehensive understanding of the province’s advantages and potential to help encourage relevant and promising business ideas.

Thai investors asked a number of clarifying questions on land-lease contracts, the province’s policy on natural resources and the protection of foreign companies, worker salaries, tariffs and procedures for bank loans.

Responding to concerns from Thai investors, the province’s Deputy Chairman Ha Sy Dong said that Quang Tri will create favourable conditions for Thai enterprises to rapidly and effectively implement investment projects.

Around 1,200 local and foreign enterprises have been registered in the province with a total capital of US$2.36 billion, yet only three are Thai businesses.   

Workshop to facilitate Vietnamese businesses in Laos

A workshop was held on March 19 in Vientiane, Laos to help ease Vietnamese business difficulties in employing labourers while operating in the country.

The event, organised by the Lao Ministry of Labour and Social Welfare (MoLSW), was attended by Deputy Minister Baykham Khatthinha, Minister Counsellor Tran Manh Cuong, and crowds of representatives of businesses from the two countries.

The workshop was designed to improve the Ministry and relevant bodies’ implementation of the Agreement on Labour Cooperation jointly signed by the two Governments, as well as to create a favourable business climate for Vietnamese enterprises in the country.

Addressing the event, the Lao Deputy Minister spoke highly of working skills and attitude of Vietnamese labourers, affirming that the workers have made significant contributions to local socio-economic development.

The Government of Laos and the Ministry consider Vietnamese labourers in Laos a part of the country’s workforce, she added.

She also called for Vietnamese businesses and labourers to abide by the laws and regulations of the host nation to ensure their own successes and facilitate management.

Representatives from Vietnamese businesses suggested the country expand its labour quota, reduce labour fees, and simplify licensing procedures to encourage Vietnamese labourers to work in the country.

Businesses urged to engage in institutional reform

Businesses play a vital role in creating a breakthrough in institutional reform, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc said at a workshop in Hanoi on March 19.

Loc noted the Government’s efforts to improve policies, which resulted in reductions of between 30-70% of the time spent on tax and customs procedures, more simple procedures for business start-up and better access to electricity.

However, in the global race, the Vietnamese business environment has moved up only two places to the 68th, which calls for double efforts in the coming time, he said.

According to Loc, the business community should be more active in providing recommendations and feedback to the government, particularly pointing out difficulties and restrictions in the field and suggesting measures to remove them.

Le Minh Thong, Deputy Chairman of the National Assembly’s Law Committee, said lawmaking and enforcement agencies should hold more dialogues with businesses in order to identify and remove the bottlenecks.

Sharing this viewpoint, Vice Chairwoman of the Vietnam Textile and Apparel Association (VITAS), Dang Phuong Dung said the Government’s Resolution 19 on improving the business climate and competitiveness in 2015 and 2016 has provided the foundation to help businesses integrate deeper in the global market and perform more efficiently.

However, she emphasised that businesses hope for more improvements in reality.

Resolution 19 gives priority to speeding up administrative reform, thus further reducing time and cost for handling administrative formalities, and ensuring transparency and accountability of State administrative agencies.

It also aims for extensive reform of business regulations, bringing the country’s business environment to the mid-range level compared to the six more developed members of ASEAN, which are Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand.

The workshop was co-organised by the VCCI and the Governance for Inclusive Growth programme of the US Agency for International Development (USAID/GIG).

The 25th Vietnam International Trade Fair (Vietnam Expo) will take place in Hanoi from April 15-18 with the participation of more than 600 exhibitors from 27 countries and territories worldwide.

Themed “Cooperation towards ASEAN Economic Community”, the event aims to create opportunities for business to partner with both domestic and international enterprises to improve export growth and attract foreign investment to the country.

Participating exhibitors will showcase a wide range of products, from machinery, equipment and electronic products to home appliances and health care merchandise.

Numerous activities will also be held during the four-day event, such as an export promotion forum, seminars, contract signing ceremonies, and field trips.

The annual Vietnam Expo is considered a significant trade promotion activity, contributing to cooperative programmes and stimulating import-export and investment in Vietnam.

Domestic demand returns in Vietnam, says ANZ

ANZ Bank forecast that Vietnam’s GDP growth to 6.5% year on year for both 2015 and 2016 (from 6.2% and 6.4% respectively).

Support from external demand continues to be robust as the barbell effect of low oil prices remains intact. Various indicators are pointing to a recovery of domestic demand.

The expansion in industrial production is fastest since the index was rebased in 2012.  The production of construction-related materials is picking up, pointing to an improvement in the construction and real estate sectors.

Average real growth of retail sales in the first two months of the year is the fastest rise over the same period in five years.  Sales of all types of motor vehicles are growing. Sales of passenger cars have been rising, while growth in sales of commercial vehicles is in line with the strength in manufacturing.

The steeper-than-expected pull back in inflation leads us to downwardly revise our inflation forecasts to 2.6% in 2015 and 3.8% in 2016. (previously at 3.0% and 4.5% respectively). With a subdued inflation outlook, we see sufficient room for the central bank to further loosen monetary conditions in 2015 as growth is still below potential.

Industrial production (IP) posted the fastest annual gains since 2012, when the series was re-based. Averaging the seasonal effects of the lunar New Year (Tet) holidays, we estimate IP growth of 14.2% over the first two months of the year, up from 5.6% over the same period in 2014.

Manufacturing activity, which we see accounting for at least 70% of total industrial production, has been gaining momentum since October 2014.

Production of electronic components reported a robust average growth of 16.6% over the period, on top of almost 40% growth over the same period last year.

This is in line with another expected strong growth in exports in 2015 on the back of continued foreign direct investment (FDI) from big international electronics players.

Local nut company joins Australian Macadamia Society

Vietnam’s Him Lam company, which has big plans for long-term macadamia sector development in the country, has joined the Australian Macadamia Society (AMC).

By becoming an AMC member, Him Lam will gain access to research on the macadamia value chain and macadamia cultivation, processing, storage and branding.

Currently Him Lam is proposing to use 1,000 hectares of farming land in a number of Central Highlands localities to grow high-quality varieties of the nut, which enjoys high levels of domestic demand.

The company also plans to launch its newest macadamia nut processing facility at the end of this year in a bid to consume the harvest from farmers.

BIDV accepts JCB card payment via ATMs

The Bank for Investment and Development of Vietnam (BIDV) and JCB International Company Limited (JCBI), a member of Japanese card issuing agency JCB, held a function in Hanoi yesterday to introduce JCB card payment services via BIDV’s automated teller machines (ATMs) and points of sale (POS).

Quach Hung Hiep, deputy general director of BIDV, said the bank expected JCB cards would attract many users as the number of local residents and foreigners using cards to pay for goods and services has increased considerably.

Kimihisa Imada, vice chairman of JCBI, said as BIDV held big card payment market share in Vietnam, the launch of JCB cards through BIDV marked a milestone of its operation in the country.

Apart from BIDV, JCBI has teamed up with four other local banks – the Vietnam Bank for Industry and Trade (VietinBank), Bank for Foreign Trade of Vietnam (Vietcombank), Saigon Thuong Tin Commercial Bank (Sacombank) and Vietnam Export-Import Commercial Bank (Eximbank), to offer payment services via JCB cards.     

The foreign firm also wants to cooperate with BIDV to issue JCB cards for customers in the future.

BIDV is among the biggest retail banks in Vietnam with nearly 1,500 ATMs and 14,000 POS terminals, and has issued a total of 8.8 million debit and credit cards.  

JCBI has been active in Vietnam since 1991 and has had over 200,000 cards issued in the country.

State stake at Sabeco to fall to 36%

The Ministry of Industry and Trade is mulling lowering the State stake at Saigon Beer, Alcohol and Beverage Corporation (Sabeco) to 36% from the current 89.59%.

Chairman of Sabeco Phan Dang Tuat was quoted by the news site VnExpress as saying that the ministry would submit the share sale plan to the Prime Minister for consideration.

More than ten foreign and domestic investors, including Saigon Securities Incorporation, Asahi (Japan), Heineken (Netherlands), Thai Beverage (Thailand) and SAB Miller (the U.S.) have expressed interest in buying shares at Sabeco, according to baodautu.vn. But the ministry plans to select two of them.

Tuat said the firm would organize an auction to sell the shares, but the starting price has not been decided.

“Investors whose want to become strategic partners of Sabeco must meet the requirements set by the ministry,” said Tuat but he did not elaborate.

The owner of Thai Beverage (ThaiBev) last year sought the Government’s backing to buy into Sabeco. It assessed Sabeco’s value at US$2 billion but Tuat said the sum was lower than the actual value of Sabeco.

Sabeco reported revenue of over VND29.78 trillion (nearly US$1.4 billion) and pre-tax profit of VND3.67 trillion last year.

Dong Nai wants values of Pho Isle preserved

The government of Dong Nai Province has dropped the idea of building a modern commercial center on Pho Isle in a move to preserve the cultural and historical values of the 300-year-old isle.

The province is zoning Pho Isle off Hiep Hoa Commune in Bien Hoa City into an eco-residential area to keep the old architectural and cultural traits intact, according to Ly Thanh Phuong, deputy director of the Dong Nai Department of Construction.

As planned, the southern province will develop a 220-hectare eco-park and a 20- hectare cultural center comprising of museum, theater, exhibition area and research institute.

Ancient historical, cultural and religious works such as Ong Pagoda, Long Quoi and Hoa Quoi communal houses and Nguyen Huu Canh Temple will be embellished to highlight local features.

In 2005, the provincial government allowed Tin Nghia Joint Stock Company and its Singaporean partner Surbana International Consultants to draw up a plan to turn Pho Isle into a miniature Singapore. However, the company was requested to move the project to the current site of Bien Hoa 1 Industrial Park last year.

Covering an area of about 695 hectares, Pho Isle has old historical and cultural values and therefore, it is more reasonable to turn this place into an ecological area, said Tran Van Vinh, vice chairman of the province.

Restructuring schemes for major ports may change

The Ministry of Transport has sent the Government its plans to sell majority State stakes at Saigon and Haiphong ports to Vingroup Joint Stock Company (Vingroup) and if they are approved, the restructuring and equitization plans for Vietnam National Shipping Lines (Vinalines) and Saigon Port would change considerably.

In the schemes sent to the Prime Minister, the ministry proposed selling an 80% stake at each of the ports to Vingroup and the remaining shares would be held by the State and other investors.

According to the plans prepared by Vinalines, which operates the two ports, the State would own 65-75% of the two key ports of Vietnam after they go public. However, Vinalines would have to adjust its initial plans if Vingroup gets approval from the Government to hold the proposed percentage of ownership.

Saigon Port is completing a scheme for its initial public offering (IPO) in April. The port is valued at nearly VND4 trillion with some VND2.16 trillion owned by the State.

Haiphong Port completed its IPO with the average winning price of VND13,507 per share. If Vingroup buys 80% of the port’s shares, the State holding there would decline to a small percentage compared to the port’s chartered capital of VND3.27 trillion.

The ministry’s proposal to sell Haiphong Port’s majority stake to Vingroup means Vietnam-Oman Investment cannot become a strategic investor of the port though it got approval to buy part of the port.

VN feed firms look to match foreign rivals

With many domestic giants foraying into animal feed production during recent years, there is hope that domestic firms will expand their market share to compete with foreign rivals.

However, this seems a long way ahead, given the dependence on the import of raw materials and the domination of foreign-invested companies in the domestic animal feed market, which is seeing a double-digit growth rate, according to experts.

Most recently, steel giant Hoa Phat Group launched its animal feed subsidiary on Monday, which will have an annual capacity of 300,000 tonnes and is located in the northern Hung Yen Province.

Previously, Masan, An Giang Plant Protection Company, and the Hung Vuong Seafood Corporation had also entered the animal feed production sector.

The domination of foreign-invested companies in the sector has been known for years and how this problem will be tackled is of great concern for both domestic firms and management agencies.

Data from the Viet Nam Animal Feed Association showed that 59 foreign-invested firms and joint ventures own half of the market share, while 180 domestic firms hold only 20 per cent and the remainder is made up by imported products.

Two major foreign players–CP and Cargill alone–hold a combined market share of 30 per cent.

A report published by the Institute for Studies of Society, Economy and Environment has pointed out that the animal feed production sector is under the control of a few companies, adding that monopoly should be tackled to ensure healthy competitiveness.

The domination of foreign-invested companies in the animal feed production sector has resulted in 20 per cent higher prices for animal feed, compared with the regional average price.

Higher animal feed prices are also estimated to have caused a damage of up to trillions of dong to the economy as the cost for animal feed accounted for 70 per cent of the husbandry production value. In addition, higher prices have also made husbandry products of Viet Nam less competitive.

The Ministry of Industry and Trade has urged that measures be introduced to tackle the domination of foreign-invested firms in the animal feed production sector.

At the end of last year, the Minister of Agriculture and Rural Development, Cao Duc Phat, said at the National Assembly's Economic Committee meeting that the Government aimed to create a healthy competitive environment and prevent the formation of monopolies, which would harm the interests of farmers.

From the beginning of this year, a valued added tax of 5 per cent was cut to zero, aiming to ensure fairness for players in the market and support farmers in husbandry production.

Imports of animal feed and raw materials for animal feed production kept rising during the last seven years from US$1.73 billion in 2008 to $3.25 billion in 2014, customs' data indicated. Imports of animal feed and raw materials during the first two months of this year reached $170 million.

Nha Trang attracts more developers

Already famous as one of Vietnam’s leading holiday destinations, the central province of Khanh Hoa’s Nha Trang city continues to attract foreign invested hospitality and housing projects.

Andrey Grinev, CEO and owner of Russia’s State Development, the developer of the Cam Ranh Flowers Resort in the central city, said that he had explored investment opportunities at beaches throughout the country before finally deciding to choose Nha Trang for his first project. With the total investment capital of US$90 million, the Cam Ranh Flowers Resort is spread over 15 hectares and is comprised of a luxury hotel with 256 rooms and 10 bungalows, as well as prestigious residences for sale.

“We chose the Cam Ranh area, since it is one of the fastest growing and up-and-coming resort areas in Vietnam. It’s well suited for high-end tourism and coastal residences,” Grinev told VIR.

He added that Cam Ranh peninsula would include everything an up-and-coming resort destination would need.

“In the near future there will be constructed golf courses, shopping malls, seaport for yachts and boats, marina and much else,” he said.

Grinev also believed the area was set for development, a factor that would see residential prices rise.

“The area has a very favourable location and offers convenient logistics and transport connections via air, water and road as well as plenty of surrounding tourist attractions.

The new international airport at Cam Ranh 15 minutes away includes direct and affordable flights to many cities in Russia and some in Asia. And new flight destinations are constantly opening. Nha Trang as a tourist resort town is just 20 minutes away – and it boasts developed and growing tourist and entertainment infrastructure,” he said.

Moreover, he added the area benefited from an idyllic climate with calm, warn and clean ocean water.

According to property services provider Savills Vietnam, since 2007, the number of international visitors to Khanh Hoa and specifically Nha Trang, has risen by 18% annually. More than 850,000 foreign tourists visited in 2014, in addition to 2.8 million domestic visitors.

However, Russian tourist numbers slid last year as the rouble’s value fell. The occupancy rate dipped by to 70% following a 6% fall while the average room rate at four and five-star hotels dropped a huge 14% to VND2.7 million (US$126) per night.

By the end of last year, Nha Trang had approximately 9,200 units in 43 projects. Around 3,200 rooms in six four and five-star hotels will enter the market in Nha Trang this year.

With the opening of two four-star and one five-star properties last year, there are over 4,000 rooms now available, a 24% rise from 2013.

Apart from hospitality, Nha Trang is also home to residential development projects. Apartments accounted for 49% of market share, followed by land plots at 41%. Most apartment projects are located along the coast, with many on Tran Phu street.

Landed property projects for second homes and investment are spreading to the west due to wider land availability. Buyers, mainly from Hanoi and HCM City looking to purchase a holiday home prefer projects by the beach with sea views.

Nha Trang is set to see 34 future residential projects with the total area of more than 1,100 hectares in the pipeline, with the majority of the projects located to the north and west of the city.

HCM City firms still ask for simpler procedures

HCMC has forwarded the proposals made by local businesses at their meetings with city leaders earlier this month to the Government for consideration, with most of them seeking simpler investment approval procedures and lower taxes for the automotive industry.

In a document submitted to the Government last week, the city seeks support for making business conditions favorable for the corporate sector so that it can improve efficiency and contribute more to the city’s development.

The city suggests the Government streamline the procedures for issuing work permits for foreign experts and cut taxes for manufacturers of buses, trucks and motorbikes of below 125cc.

The Government should make clear procedures for jobless claims as well, according to the proposals.

Around 130,000 domestic enterprises in the city can generate a combined output value of US$10.8 billion, create jobs for two million people, and account for 49.1% of the city’s total export revenue.

As of late last year, the city had had 5,310 valid foreign direct investment projects with total registered capital of US$36.28 billion and FDI companies had generated employment for 550,000 people.

The city government said FDI enterprises had not only injected capital into the city but also transferred technology and business skills, supporting the city to restructure its economy and boost economic growth.

At the meeting with the city’s leaders early this month, many firms expressed concern over the increasingly tough business conditions this year. They said difficult access to bank loans, high land rent and the lack of incentives for small-and medium-size enterprises are among the challenges faced by them.

Le Thanh Hai, secretary of the HCMC Party Committee, told the meeting that companies would face many difficulties this year, so he promised the city would improve the investment environment for them.

VPBank may become big shareholder at CICT

VPBank will become a major shareholder at Cai Lan International Container Terminal (CICT) if the proposal of Vietnam National Shipping Lines (Vinalines) to use shares to pay its debt for the lender is approved.

Vinalines has submitted the proposal to the Ministry of Transport as it owes huge debt and is unable to contribute more capital to maintain the operations of CICT. The first deepwater terminal in the north has suffered huge losses.

Earlier this month, the Ministry of Transport called a meeting to find ways to solve problems at CICT, the joint venture between Cai Lan Port Investment Co. (CPI) with a 51% stake and SSA of the U.S. and other partners. Vinalines holds a 51% stake at CPI. The project has a total investment of US$155.3 million and Vinalines holds a 51% stake at CPI.

Since its inauguration two years ago, CICT has been running at only 20% capacity for Phase 1 (520,000 TEUs per year) due to low cargo throughput and higher fees than other terminals, especially Haiphong Port.

Big shipping lines have visited CICT less as it is located at an inconvenient site. Moreover, the Baltic Dry Index (BDI) has continuously fallen, at around 560 points this month, and is not expected to improve this year, putting the terminal into a more difficult situation.

However, the debt CICT has to pay has kept rising, from US$4.4 million in 2012 to US$9.5 million in 2013 and US$13.6 million in 2014.

According to a report CICT sent to the Ministry of Transport, its accumulated losses had amounted to over VND269.5 billion last year and the losses in the first two months of this year were VND39.7 billion.

If CICT fails to pay its debt upon maturity, shareholders will have to contribute more capital to address financial issues at the terminal. However, both Vinalines and CPI cannot do this as they are now in the process of debt restructuring while SSA only wants to pour an amount corresponding to the 49% stake at the terminal.

As a consequence, Vinalines wants to divest from CPI and transfer its capital contribution to VPBank as its payment for a syndicated loan worth US$36 million it borrowed from VPBank and another bank in 2009 to buy Vinalines Sunrise ship. The lender is expected to help with operation restructuring at CICT.

Sun Group may face legal action for road closure

Nguyen Trung Dan, a business owner in Danang City, has threatened on his Facebook page that he may sue Sun Group if it does not allow people to go up Ba Na Hill by road.

The owner of Suoi Luong-Nam Hai Van ecotourism site (Danatol) said the legal action, if any, is aimed at ensuring freedom for people to trek up the mountain by road. Sun Group has blocked the road leading to the top of the mountain.

According to Dan, he owns a piece of land on Ba Na Hill and though Sun Group has bought the management right to a large swath of the mountain peak, he still has the right to go up Ba Na.

“I have had the land use right certificate since 2003 for my piece of land there and I don’t think Ba Na Hill is the property of a single firm,” he said.

As shared by Dan, he has asked Hoang Qui Law Office to request Sun Group to announce that everyone can go up Ba Na Hill by road as well as repair and return the road to its original condition. If Sun Group turns down the request, he will hire the law office to sue it.

Locals have objected to Sun Group’s action to block the road, making locals unable to ascend the mountain except for using the cable car system developed and operated by Sun Group.

Locals have questioned why they have to pay for the cable car service if they do not want to use services of Sun Group’s Ba Na Hills resort but only visit Linh Ung Pagoda or reach the peak of the mountain by road. Sun Group has explained they just want to warn locals of the deteriorating road.

After strong reactions by locals, the barrier at the road’s entrance has been lifted but the road remains bad. According to Dan and locals, the road leading to the hilltop has become a construction site of Sun Group.

Dan said all necessary documents have been prepared to reclaim the right to  travel to the Ba Na Hill area.

Vietsovpetro targets US$3.87 billion revenue this year

The Vietnamese-Russian joint venture Vietsovpetro has targeted sales of US$3.87 billion this year and profit of some US$2.17 billion for the local partner despite diving oil prices on global prices.

Vietsovpetro was quoted by Vietnam News Agency as saying that the joint venture has plans to pump 5.1 million tons of crude oil with sales of US$3.87 billion. It targets profit of some US$2.17 billion for the Vietnamese side and US$345.3 million for the Russian investor.

Vietsovpetro plans to extract crude oil from 26 new wells. The enterprise is building and operating RC-9 and ThT-2 oil rigs, and investing in Tam Dao-05 oil platform and two service vessels, an offshore accommodation barge and a gas collection system for Vietsovpetro-2 ship.

A source from Vietsovpetro said to carry out the plans, the company would apply advanced technology to make oil pumping more efficient when some oil rigs suspend operation for repair.

More convenience stores to go up at Petrolimex gas stations

Petrolimex Saigon will allow its partners to open convenience stores and fast-food eateries at its gas stations.

Nguyen Dinh Kha, head of business and services at Petrolimex Saigon, told the Daily that pharmacies, carwash facilities and banks’ transaction offices, among others have gone up at 32 gas stations and more will be opened at 45 out of its 68 pumping stations in the inner area of HCMC.

Kha said convenience stores and fast-food eateries are planned at the remaining stations of Petrolimex Saigon as part of the enterprise’s plan launched in April last year to develop a convenience store chain to serve fuel buyers at its gas stations.

In addition, the enterprise will permit Dat Viet Advertising Co. to place advertisements at the stations.

Kha said the enterprise posted revenue of VND50 billion from pharmacies, carwash facilities and insurance sales, and profit of VND4 billion last year. The targets for this year are VND70 billion and VND11 billion respectively, and the revenue makes up 15% of its total sales.

Kha said Petrolimex, the parent firm of Petrolimex Saigon, has plans to open convenience stores by itself to sell necessities at its gas stations or by joining forces with a partner with strong brands in this sector.

Earlier, Petrolimex deputy general director Tran Ngoc Nam said the group had plans to operate convenience stores at its filling stations to provide more services to customers and create new revenue streams.

Petrolimex now runs a network of 2,500 filling stations across the country.

Another blow to consumers

‘It never rains but it pours’ must be the most popular proverb which Vietnamese consumers use to talk about the unprecedented situation in which the Government has decided to sharply raise taxes while prices of various necessities are on the rise.

Having struggled with the protracted economic woes, consumers must find it difficult to absorb such big shocks in a short period of time and once again, they feel more vulnerable than ever as they find their pockets no longer deep enough.

Last week, the Government approved an electricity price spike of 7.5% to an average of VND1,622.05 per kWh, with effect from next week, despite experts warning that the price hike would send production costs up, making life even more difficult for businesses.

To matters worse, the National Assembly Standing Committee on Tuesday passed a resolution increasing the environmental protection fee on gasoline by VND2,000 to VND3,000 a liter along with other fuel products from early May.

According to a Government statement which was presented to the committee by Minister of Finance Dinh Tien Dung, the environment fee spike is aimed at partly offsetting the State budget shortfall because of the world oil price slump and import tariff cuts. Vietnam is fulfilling its international commitments to lowering export and import duties. The Government’s environment fee reduction makes it possible to cut import tariffs from 35% to 20% as per Vietnam’s commitments to ASEAN. Official figures showed that Vietnam imported 4.6 million tons of fuels from ASEAN, China and South Korea last year, which accounted for around 64% of the country’s fuel imports.

Because the fee hike is still lower than the tariff cuts, it will not affect fuel retail prices, the minister maintained. In addition, the fuel retail price in Vietnam is VND5,000-6,000 lower than in Laos, Cambodia and China, resulting in widespread smuggling of fuels. The budget revenue increase from the environment fee collection will be used to fund environmental protection efforts.

Nonetheless, experts are quick to point out the minister’s explanation is not at all convincing. Just one day after the Government was allowed to increase the environment tax on fuels, the fuel retail prices of gasoline and oil rose as high as 10.2%, ending the 13 rounds of fuel price cuts since July last year.

This has really stirred up disagreements among the public. The sharp fall in world oil prices has raised concerns that it will hurt Vietnam’s oil production and budget revenues but many experts state that lower oil prices could bring Vietnam more gains than losses.

As reported by Sai Gon Giai Phong newspaper, Minister of Planning and Investment Bui Quang Vinh says earlier this year that since Vietnam’s imports of refined fuels outstrip its crude exports, the economy can benefit from lower input and transport costs. In February, Vietnam’s annual inflation dropped to 0.34% from 0.94% in January thanks largely to lower transport costs as a result of falling fuel prices.

Quoting a daily report of Viet Dragon Securities Company (VDSC), Dan Tri newspaper says that the taxes and fees Vietnamese consumers are paying total nearly VND7,900 for every liter of gasoline, or 1.4% higher than the base price. If the new tariff is applied, consumers will have to pay 25.3% more. On the other hand, if the petrol retail price stays at VND15,600 per liter like now, the public can save around VND50 trillion this year, which is believed to fuel consumption in the country.

Economic expert Pham Chi Lan says that those who lobby for the policy are very “smart” as they raise the fee to compensate for the budget shortfall. However, the environment taxes must be used to improve the environment, nothing else.

“I’m skeptical about the purpose of using the environmental protection fee. Will the environment in Hanoi and HCMC be better or worse due to large fuel consumption in these populous cities? For the policy, I think that the purpose of offsetting the budget shortfall outweighs that of environment protection,” she stresses.

The expert says that fuel wholesalers rather than consumers are benefiting most from the import tariff cuts. But when the environmental protection fee moves up, consumers are those bearing the bulk of the additional cost. “The decision has been made but it is a regret that the nation’s consumer protection association has yet to raise a voice in protest against a decision that hurts consumers,” she says.

Sharing the same view, Ngo Tri Long, a pricing expert, says on thoibaokinhdoanh.vn that the environment fee pickup would leave huge impact on fuel prices in the coming time. Moreover, it is irrational to raise the fee to offset the import tax cuts as the State taxes one thing in order to offset the loss of another.

“The Government should reconsider the fee hike to ensure a balance between the gasoline price increase of VND2,000 a liter and the 15% import tax cut. Is the ratio really reasonable? In the current circumstances, higher fuel prices will hit consumers and business competitiveness,” Long adds.

Nguyen, a reader of Tuoi Tre newspaper, says when the fee is applied, the Government should launch an action plan to use this source of capital to improve the environment. The environment fee collection is necessary but how to use the money must be made transparent. This is the only way to mitigate the shock on consumers who have already felt a heavier burden of soaring fees, taxes and goods prices.

Technology fair opens in Dong Nai

A fair for technology, equipment and trade in the southeast region, known as Techmart Dong Nai 2015, was launched in Bien Hoa city in southern Dong Nai province on March 19.

Techmart Dong Nai seeks to develop the technology market in the region and improve linkages between research, training, manufacturing and trading to facilitate technological innovation and commercialisation.

This year’s fair features 275 booths from 200 organisations, 125 of which are from the departments of science and technology of Ho Chi Minh City, Dong Nai, Binh Duong, Binh Phuoc, Ba Ria – Vung Tau, Binh Thuan and Tay Ninh.

Other localities also made appearances, including northern Hanoi and Can Tho city and Tien Giang province from the Mekong Delta.

Products in mechanical engineering, electronics, food processing, biotechnology, medicinal chemistry and hi-tech agriculture are on display at the event.

The fair creates a platform for high-tech product promotion and technology transfer, said Director of Dong Nai’s Department of Science and Technology Vo Van Sang.

The event will run through March 24.

Technology fair opens in Southeast region

A fair for technology, equipment and trade in the southeast region, known as Techmart Dong Nai 2015, was launched in Bien Hoa city in southern Dong Nai province on March 19.

Techmart Dong Nai seeks to develop the technology market in the region and improve linkages between research, training, manufacturing and trading to facilitate technological innovation and commercialisation.

This year’s fair features 275 booths from 200 organisations, 125 of which are from the departments of science and technology of Ho Chi Minh City, Dong Nai, Binh Duong, Binh Phuoc, Ba Ria – Vung Tau, Binh Thuan and Tay Ninh.

Other localities also made appearances, including northern Hanoi and Can Tho city and Tien Giang province from the Mekong Delta.

Products in mechanical engineering, electronics, food processing, biotechnology, medicinal chemistry and hi-tech agriculture are on display at the event.

The fair creates a platform for high-tech product promotion and technology transfer, said Director of Dong Nai’s Department of Science and Technology Vo Van Sang.

The event will run through March 24.

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