Foreign businesses in HCM City reopen after riots

All foreign businesses in HCM City’s export processing and industrial zones, including Taiwanese resumed production on May 19, following recent anti-Chinese protests.

Taiwanese-invested Freetrend Company in Linh Trung 2 industrial zone stabilised and restarted operations to ensure the supply of products under the signed contracts after two days of civil unrest against China’s illegal actions in the East Sea Local authorities’ have pledged their commitment to supporting businesses and addressing difficulties to ensure a safe investment environment.

The HCM City Export Processing and Industrial Zones Authority (HEPZA) called on business, particularly foreign ones to strengthen solidarity between employers and employees to stabilise and develop production, fulfilling targets for 2014.

HEPZA’s Management Board Head Vu Van Hoa said that businesses should put their faith in the Vietnamese laws and the State, which have always protected investors’ legitimate interests.

He added that HEPZA has been authorised by the State to resolve conflict and create a healthy investment environment for businesses.

SBV warns against gold, foreign currency purchases

The State Bank of Vietnam (SBV) has advised the public to be vigilant against rumors circulated by ill-intentioned elements related to the gold, foreign currency and monetary markets to avoid incurring losses and doing harm to the economy.

Despite the escalating situation in the East Sea in recent days, the monetary, foreign exchange and gold markets have remained stable and the banking system has continued to operate in a normal and safe manner, SBV said in a statement.

This demonstrated public confidence in the way the Government is doing to protect national independence, sovereignty and territorial integrity, along with maintaining security and an environment of peace and stability to develop the economy and to resolve disputes by peaceful means and in compliance with international law.

The statement was released as the Vietnam dong-U.S. dollar exchange rate and gold prices have turned volatile on the market in recent days. People have flocked to buy gold and dollars.

However, the volatility has mainly hit the unofficial market, which accounts for around 10% of the nation’s currency market.

On Friday, Vietcombank sold the greenback at VND21,175, up VND40 against the previous day and VND55 from early last week. This is also the record high since last July.

Other banks quoted the dollar at VND21,160-21,180 but the price rose to VND21,400-21,500 on the unofficial market, up VND150-200 from the previous day and VND400 from early last week.

A leader from the central bank said that there was no sudden rise in foreign currency demand. People’s anxiety over the East Sea tension had pushed up dollar prices. Banks also possibly raised prices to improve earnings.

However, the central bank would not intervene if dollar prices are still under the ceiling rate of VND21,246 per U.S. dollar, the leader said.

Pham Linh, deputy general director of Orient Commercial Bank (OCB), said that foreign currency demand at the bank had increased mildly as enterprises needed dollars for imported goods payments. The increase is just minimal.

Meanwhile, the greenback soared on the black market due to strong demand. Some foreign currency trading points at Ben Thanh Market in HCMC’s District 1 failed to serve customers due to a supply shortage.

Nguyen Hoang Minh, deputy director of SBV’s HCMC branch, said the agency was supervising the gold and foreign currency markets to have timely stabilization measures.

The SBV in the statement also said that it has been closely monitoring the situation, and stands ready to take all necessary measures to maintain monetary, foreign exchange, and gold markets, as well as to devise appropriate solutions to ensuring the security and safety of the credit institutions system, and branches of foreign banks operating in Vietnam.

Calm and caution of the people will greatly contribute to the country’s socio-economic stability, SBV said.

Pakistan remains Vietnam’s largest tea importer

Pakistan has become Vietnam’s most prolific tea importer in recent years with an average turnover reaching over US$40 million per year, accounting for more than 20% of Vietnam’s total tea export volume.

According to the Ministry of Agriculture and Rural Development (MARD), Vietnam earnedUS$13 million from exporting approximately 8,000 tonnes of tea in April,, bringing total export tea volume to 33,000 tonnes, valued at US$51 million in the first four months of this year.

The average export price of Vietnamese tea stood at US$1.541 per tonne in the first quarter of 2014, up, 2.49% against the same period last year.

Although Vietnam recorded a huge turnover from exporting tea to Pakistan, only a small proportion of the total tea volume consumed in Pakistan. Pakistan mostly imported tea from Kenya and other nations such as Bangladesh, Brazil, India and Uganda.

The Ministry of Industry and Trade (MoIT) African, West and South Asian Market Departmentattributed the situation to Vietnam’s poor varieties (mostly black and green tea), low quality and unattractive design, reducing competitiveness of these products on the international market.

Construction of wind farm gets underway in Ninh Thuan province

Construction of the Cong Hai 1 wind farm began on May 19 in the central province of Ninh Thuan.

The project has a total cost of VND1.5 trillion (US$70.5 million), with construction work carried out by a consortium of three Vietnamese companies.

In the first phase, with estimated cost of VND191 billion (US$9 million), three Russian-made turbines will be installed on an area of 20 hectares in Thuan Bac district’s Cong Hai commune.

Each turbine has a power of 1 megawatt and is designed to operate at full capacity with average wind speeds as slow as 7–8 metres per second.

These turbines are being assembled in Russia and expected to be transported to Vietnam for installation in early 2015.

In the second phase, the wind farm will be expanded to cover over 180 hectares with the installation of an additional 25 turbines, which can generate 37.5 megawatts.

Ha Nam cooperates with Japan in growing safe vegetables

The northern province of Ha Nam will provide one hectare for two Japanese investors to implement their pilot projects of cultivating clean vegetables and fruit.

Chairman of the provincial People’s Committee Mai Tien Dung made the statement at a working session with representatives from Japan’s Nishimori Ltd., Co and HBC International Co. on May 19.

The province will also create the best conditions for the Japanese investors to implement the projects and consider expanding the cooperation based on the projects’ outcomes, he said.

Highlighting the province’s strength in land and workforce, Dung said Ha Nam is facing certain difficulties related to varieties, processing technologies and product advertising.

Therefore, the province plans to boost cooperation with experienced partners in the field, especially those from Japan, aiming to turn itself into one of the country’s leading providers of quality vegetables and fruit for both home and overseas markets.

The Japanese representatives said they want to introduce their advanced technologies and quality varieties to Ha Nam province.

On the occasion, the foreign companies showed technologies developed to analyse the quality and detect pesticide residues in some farm produce.

Vietnam joins TPP Ministerial Meeting in Singapore

A Vietnamese delegation, led by Deputy Minister of Industry and Trade Tran Quoc Khanh, attended the Trans-Pacific Partnership (TPP) Ministerial Meeting, which opened in Singapore on May 19.

In total, 12 TPP member countries, including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US, and Vietnam attended the event.

The agenda focused on issues related to market access to goods and services, intellectual property rights, investment, environment, state-owned enterprises, and financial services.

They concurred that TPP agreement will deliver economic benefits to all 12 member countries, which are home to more than 792 million people, and account for nearly 40% of the world’s GDP and one third of global trade value.

Azerbaijan, Vietnam standardize taxation to boost bilateral trade

Vietnamese and Azerbaijani Presidents witnessed the signing of an agreement on double taxation avoidance between the two countries in Hanoi on May 19.

The signatories were Finance Minister Dinh Tien Dung and Azerbaijan Minister of Taxes Fazil Mammadov.

The agreement will contribute to boosting trade and investment cooperation, creating a clear, stable and legal tax foundation for Azerbaijan and Vietnamese businesses to expand investment, indirectly strengthening comprehensive cooperation in all fields between Vietnam and other Asian countries.

Earlier, Minister DinhTien Dung attended the crucial talks between President Truong Tan Sang and his Azerbaijani counterpart Ilham Aliyev.

Despite the fact that economic and trade ties between Vietnam and Azerbaijan is yet to commensurate with their full potential, Azerbaijani President’s visit and the newly signed agreement will provide leverage for wider cooperation, development and prosperity between the two nations.

The agreement also marked a new step of development in economic, diplomatic and political relations between Vietnam and Azerbaijan.

Binh Duong reestablishes social order in VSIP

Secretary of the Binh Duong provincial Party Committee Mai The Trung has provided assurance to Singapore that social order in the Vietnam-Singapore Industrial Park (VSIP) has been reestablished.

He made the statement at a working session with Kelvin Teo, co-chairman of VSIP Group on May 19, addressing issues related to recent incidents in the VSIP, in connection with China’s illegal stationing of its oil rig deep within Vietnam’s exclusive economic zone.

More than 80% of affected businesses have resumed normal operation, he said adding that all law-breakers and extremists will be strictly punished in accordance with existing laws.

Local authorities are coordinating with businesses to evaluate the extent of property losses and stabilize production activity, he concluded.

Kelvin Teo highly in turn said he valued the prompt response taken by provincial leaders, saying this has consolidated trust of businesses operating in the VSIP.

The same day, Kelvin Teo worked with Binh Duong provincial People’s Committee Chairman Le Thanh Cung, with a focus on seeking solutions to ensure security and help businesses iron out their snags.

Markets to stock organic goods

Organic vegetables grown under VietGAP (Good Agricultural Practices) standards will be sold at traditional markets in HCM City with the support of the city's Department of Industry and Trade.

Late last week, the department met with 17 traditional markets and agricultural co-operatives to discuss ways to bring VietGap to traditional markets in the city.

VietGap certified vegetables are usually sold only at supermarkets and through other modern distribution channels.

At the meeting, Ben Thanh Market in District 1 was chosen to conduct trial selling of VietGap vegetables at 32 booths in June and July.

Le Ngoc Dao, the department's deputy head, said that if the trial at Ben Thanh Market succeeded, the model would be expanded to 16 other markets.

Under the plan, each market in the city would have at least one or two stalls selling organic vegetables this year. The goal is to replace vegetables that have no label of origin, she added.

Nguyen Cong Thua, director of the Anh Dao Agriculture Service Company that produces VietGap vegetables, said that prices would remain the same as other non-organic vegetables.

The price of VietGap vegetables at traditional markets, in fact, would be cheaper than the same vegetables sold in supermarkets because there is no middlemen involved, thus effectively reducing costs.

Traders at traditional markets are expected to earn a profit of 10 per cent over cost when selling VietGAP vegetables.

This year, organic and VietGAP vegetables have become popular, as shown by sales at supermarkets and co-operatives.

Pham Dinh Huy, an official of a company that grows and sells organic vegetables in Go Vap District, said that in recent years the sales had increased by three times.

Each day, his company's three stores sell about 50-90kg of organic vegetables. Because of good sales, his company plans to open five stores by the end of the year.

An owner of a store in Nguyen Dinh Chieu Street said she started to sell organic vegetables in mid-2013. Now, she has 30 frequent customers and each day she sells more than 50kg of vegetables.

Last year, Saigon Co-op signed a co-operation agreement with 16 units that plant VietGap vegetables and fruit.

After one year, sales increased by 50 per cent from 60 tonnes to 90 tonnes per day. About 80 per cent of them were VietGAP certified, and another 20 per cent were organic vegetables and fruits.

A representative of the supermarket said it would continue to expand its business to support local companies that plant and distribute organic vegetables.

Local rice exports make running start to the year

The country exported 181,000 tonnes of rice in the first half of this month worth US$79.87 million, lifting the shipment to date this year to 1.932 million tonnes worth $845.38 million, according to data from the Viet Nam Food Association (VFA).

The association stated that the average price for export rice this month reached $441.51 per tonne, down roughly $21 per tonne against the same period last month.

However, domestic rice prices were reported to have edged up in the week through May 15, versus a week ago. In detail, in the Cuu Long (Mekong) Delta, the prices of dried rice with husk were from VND5,300 – 5,750 per kilogram depending on rice variety, up VND50-100 per kilogram. Prices of 5 per cent broken rice were from VND6,900 to 7,000 per kilogram, up VND100 per kilogram; prices of 15 per cent broken rice were from VND7,700 to 7,800 per kilogram, up VND50 per kilogram; and prices of 25 per cent broken rice were from VND7,400 to 7,500 per kilogram, up VND50 per kilogram.

The UN's Food and Agriculture Organisation (FAO) has estimated Viet Nam's milled rice exports to increase to about 7.2 million tonnes this year, up about 8 per cent from about 6.7 million tonnes last year due to higher production and increased export demand from Asian countries such as Indonesia, Malaysia, China and the Philippines backed by low prices.

FAO has estimated Viet Nam's total paddy rice production at about 44.2 million tonnes (around 27.6 million tonnes of milled rice) in 2014, marginally higher than about 44 million tonnes (around 27.5 million tonnes of milled rice) produced in 2013. The UN agency, however, forecasts Viet Nam's paddy rice production from 2014 winter/spring crop at 20.3 million tonnes, similar to last year's production, despite shifting part of the rice fields to other crops, due to higher yields, favourable weather conditions and adequate water supplies.

However, VFA last week lowered the country's 2014 rice export target to 6.2 million tonnes from the earlier target of 6.5 – 7 million tonnes due to heavy competition from India and Thailand.

Ha Giang urged to attract investment

Northern Ha Giang Province needs to improve its investment environment and protect the appropriate rights of investors, to attract more investment projects, reported Deputy Prime Minister Nguyen Xuan Phuc.

Speaking at the investment promotion conference, which aimed to provide a platform for domestic and foreign enterprises to explore local policies, potential and opportunities, held in the province late last week, Phuc stated that the province's difficulties in luring foreign investment included poor transport infrastructure and human resource quality, low competitiveness and a high poverty rate of 27 per cent.

However, he emphasised that the province has great tourism potential with its favourable climate and soil, natural beauty and diverse cultures, alongside other agricultural strengths such as medicinal plants, clean-water fisheries and livestock.

He proposed that the province should continue to finalise its socio-economic development planning, boost administrative reform, increase the effectiveness and efficiency of state management and improve the investment environment.

"The province also should pay more attention in comprehensively developing human resources through efficient policies on education, healthcare and culture, moving towards sustainable poverty alleviation," he added.

The deputy PM asked the ministries and agencies to support the province in promoting its infrastructure upgradation, poverty reduction projects, preservation of unique ethnic cultures and rapid and sustainable socio-economic development.

Chairman of Viet Nam Chamber of Commerce and Industry Vu Tien Loc agreed, adding that the province has been ranking low in the Provincial Competitiveness Index for years. Last year, the rank was 48 out of 63 provinces and cities.

Loc noted that the province should have solutions to accelerate administrative reforms as well as business environment.

He suggested the province to build tourism development strategy, which will focus on Dong Van Rock Plateau and connect with other provinces in the north-west region.

He said Ha Giang should also fully tap into its agricultural potential while recommending that the province focus on improving provincial-level competitiveness and connect its socio-economic development plan with that of the north-western region, he noted.

Nguyen Van Son, provincial People's Committee vice chairman, noted that the province has always prioritised resources for mobilising investment and will continue to boost administrative procedure reform in investment activities and the timely removal of problems faced by investors.

Son claimed that the province has set up investment promotion counselling centres and an Official Development Assistance (ODA) mobilisation board, responsible for attracting ODA from NGOs. It has also introduced a number of incentives on land use, water and power supplies, while simplifying administrative procedures.

At the conference, the provincial People's Committee granted licences to 9 projects, with a total registered capital of VND3.6 trillion (US$169.2 million).

The committee also signed six memorandum of understanding on cooperation and investment with businesses.

Innovation key to national development

Only innovation and intensifying application of science-technology can lead to rapid and stable development of a country, experts told an international business forum in HCM City.

Andrej Motyl, the Swiss ambassador to Viet Nam, and Daphna Murvitz of Israeli company Systematic Inventive Thinking, said good schools and universities are indispensable for business success because they are the source of innovation.

Motyl said Switzerland has few natural resources including agricultural land and no access to the sea, but is lies between Europe's leading innovators like Italy, France, and Germany.

"Switzerland is a nation of German tribes, French tribes, and Italian tribes. The extraordinary economic diversity of the country contributes to new interdisciplinary connections, which create the environment for new innovative highways."

Viet Nam must strive to have outstanding universities linked closely to economies needs and the country should create incentives to create a vocational training system like Switzerland or Germany has.

"World champion companies are cluster producers, a huge challenge for every country to have some, but it takes decades to have some.

"Viet Nam has an incredible reservoir of people for tourism, but needs to get a special label like cooking for homestay."

Viet Nam also needs a climate to promote small and medium-sized enterprises which are the backbones of innovation and resilience, he said.

Intellectual property protection is imperative for development, he added.

Dr Giap Van Duong, founder of massive open online course GiapSchool, said, quoting the experience of South Korea and Singapore, it is clear that close ties between enterprises, universities, and research institutes are needed for innovation.

SOE listings raise $81m in capital

Initial public offerings of State-owned enterprises (SOEs) have raised a total of VND1.7 trillion (US$80.9 million) so far this year.

From the beginning of this year to May 14, 25 SOEs had their shares auctioned on the Ha Noi Stock Exchange while on HCM Stock Exchange, four SOEs were equitised.

Most recently, Hai Phong Port raised VND238.7 billion ($11.3 million) in its IPO. About 47 per cent of more than 37.635 million shares put on sale at an initial price of VND13,500 ($0.64) a share, were sold at the auction to 78 investors, none of whom were foreigners.

Hai Phong Port had the biggest charter capital among SOEs which launched an IPO, worth around VND3.27 trillion ($155.7 million), followed by Viglacera with a charter capital of VND3.07 trillion ($146.1 million).

The Ministry of Transport had the most SOEs which implemented an IPO this year which numbered 9, including Cienco 1, Cienco 4, Thang Long Construction Corporation, Tedi and Vinawaco which were among 11 SOE overall had all of their shares sold at the IPO.

Seven out of 25 SOEs did not have a successful IPO with less than 5 per cent of shares sold.

One of which was Cienco 8, with only 37,000 shares out of more than 10 million shares or 0.37 per cent sold. Others included Ha Noi Construction Corporation, Vivaso and Vinamotor.

SOEs' IPO seemingly did not appeal to foreign investors as only Viglacera had foreign investors who bought 10.1 million shares, accounting for 52 per cent of the total shares sold.

Under the approved plan, 432 SOEs must be equitised in the 2014-15 period. This is a number, which many said would be too ambitious.

Biodiesel factory gets underway

The construction of a biodiesel plant began yesterday in the Tra Da industrial zone in Pleiku City in the Tay Nguyen (Central Highlands) province of Gia Lai.

This is the first biodiesel plant in the Tay Nguyen (Central Highlands) region which would be using local raw material.

Accordingly, the first stage, with a capacity of producing 8,000 tonnes annually, will be completed in eight months at a cost of VND150 billion, or US$7.1 million. After three years, the plant's capacity will be raised to 30,000 tonnes per year at an investment cost of VND500 billion, or $23 million.

VN firms attend Sri Lanka expo

Viet Nam has introduced various products, including Thai Nguyen tea, household electronic goods, food and agricultural produce to customers in Sri Lanka.

The products were displayed in the Viet Nam pavilion at the 2014 International Trade Exhibition held at the Sri Lanka Exhibition and Convention Centre in Colombo from May 16 to 18.

Sri Lankan Minister of Industry and Commerce Rishad Bathuideen appreciated Viet Nam's participation in the exhibition, saying that it shows the interest of Vietnamese business in the Sri Lanka market.

He affirmed that the Sri Lankan Government would create favourable conditions for foreign investors, including those from Viet Nam, to invest in the country.

The pavilion, jointly organised by the Vietnamese Embassy and the Sri Lankan National Chamber of Commerce, also showcased images of Viet Nam and its people, as well as traditional products and publications on the country's economics, culture and tourism as well as the friendship between the two countries.

Lotte Mart invests in Can Tho

Lotte Mart of Korea began the construction of a trade centre in Ninh Kieu District in Can Tho City on Sunday.

The project will cost VND657 billion, or US$31 million. Lotte Mart Can Tho will be a comprehensive trade centre having a supermarket, shopping centre, entertainment area and food court spread over more than 20,000sq.m.

Ha Noi to host Hungarian firms

A business forum will be held in Ha Noi on May 22 on the occasion of a Hungarian business delegation's visit to Viet Nam.

The forum is being jointly organised by the Chambers of Commerce and Industry of Viet Nam and Hungary.

The one-week forum is an opportunity for businessmen from the two countries to exchange ideas and make future cooperation plans.

Hungarian enterprises want to cooperate with Viet Nam in fields such as information technology, education, vocational training, health care, pharmaceuticals, biotechnology, chemicals, food, pesticides, waste water treatment, environment and energy.

Export forum to be held in HCM City

The HCM City Investment and Trade Promotion Center has said that the 2014 Export Forum would be held on September 12 and focus on helping exporters identify potential markets, understand changes in regulations, policies, and requirements to access the markets, import-export trends, and consumers' habits.

The "Orient Viet Nam export markets and products" forum is expected to attract 500 attendees including officials from the Ministry of Industry and Trade, envoys and commercial counselors of other countries in HCM City, trade promotion organisations, producers and exporters, and business groups.

The annual forum has been held since 2012.

KDC sees growth in pre-tax profit

Kinh Do Corporation (KDC) reports that its pre-tax profits increased 5.5 per cent in the first quarter of the year.

Net sales fell slightly by 1.7 per cent year-on-year, and the gross profit margin for the first quarter fell from 37.9 per cent in 2013 to 35.8 per cent in 2014.

The company continues to focus on improving operational efficiency and management, and plans to pursue a merger and acquisition strategy to broaden its product base.

For 2014, it targets sales of VND5.1 trillion ($243 million) and pre-tax profit of VND660 billion ($31 million).

Da Nang opens new $48m ring-road

The Ministry of Transport opened the central Da Nang City's southern ring-road project yesterday after nearly two years' work. It is expected to boost development in the region.

Part of a World Bank-funded priority infrastructure project, it includes 6.79km of four-lane road, two bridges that connect National Highway No 1 and the coastal Truong Sa Road.

The project was backed with VND1trillion (US$48 million) from World Bank's Official Development Agency (ODA) funding.

"The route will ease congestion in the city centre and support the East-West Economic Corridor that links Thailand, Myanmar, Laos and Viet Nam," chairman of the city's People's Committee Van Huu Chien said at the opening ceremony.

"The project marks the co-operation between the city and the World Bank in developing the city's infrastructure and socio-economic development."

The Minister of Transport, Dinh La Thang, said the project showed the city's capabilities in developing infrastructure projects.

He said the ministry and the city would co-operate further in developing series strategic projects, such as the Da Nang-Quang Ngai Expressway, the relocation of the railway station; upgrading sea ports and expansion of the Hai Van Tunnel.

The operations manager for the World Bank's Viet Nam portfolio, Keiko Sato, said nearly every citizen in the southern part of the city and suburbs would benefit from the ring-road.

She said she appreciated the strong leadership from the city's administration in completing the quality project on schedule.

The completion of the ring-road will help the city speed up a plan to become a Green city by 2025.

Keiko said the bank would continue to support the central city.

Vietnam's rice exports earn 845 million USD

The country exported 181,000 tonnes of rice in the first half of May worth 79.87 million USD, lifting the shipment to date this year to 1.932 million tonnes worth 845.38 million USD, according to data from the Vietnam Food Association (VFA).

The association stated that the average price for export rice this month reached 441.51 USD per tonne, down roughly 21 USD per tonne against the same period last month.

However, domestic rice prices were reported to have edged up in the week through May 15, versus a week ago. In detail, in the Cuu Long (Mekong) Delta, the prices of dried rice with husk were from 5,300 – 5,750 VND per kilogram depending on rice variety, up 50-100 VND per kilogram.

Prices of 5 percent broken rice were from 6,900 to 7,000 VND per kilogram, up 100 VND per kilogram; prices of 15 percent broken rice were from 7,700 to 7,800 VND per kilogram, up 50 VND per kilogram; and prices of 25 percent broken rice were from 7,400 to 7,500 VND per kilogram, up 50 VND per kilogram.

The UN's Food and Agriculture Organisation (FAO) has estimated Vietnam's milled rice exports to increase to about 7.2 million tonnes this year, up about 8 percent from about 6.7 million tonnes last year due to higher production and increased export demand from Asian countries such as Indonesia, Malaysia, China and the Philippines backed by low prices.

FAO has estimated Vietnam's total paddy rice production at about 44.2 million tonnes (around 27.6 million tonnes of milled rice) in 2014, marginally higher than about 44 million tonnes (around 27.5 million tonnes of milled rice) produced in 2013. The UN agency, however, forecasts Vietnam's paddy rice production from 2014 winter/spring crop at 20.3 million tonnes, similar to last year's production, despite shifting part of the rice fields to other crops, due to higher yields, favourable weather conditions and adequate water supplies.

However, VFA last week lowered the country's 2014 rice export target to 6.2 million tonnes from the earlier target of 6.5 – 7 million tonnes due to heavy competition from India and Thailand.

Vietnam Customs Information System in the pipeline

After two years of deployment, the Vietnam Automated Cargo and Port Consolidated System and Vietnam Customs Information System (VNACCS/VCIS) will be deployed in all 34 provincial/municipal customs departments across the country on June 25, the Vietnam Business Forum Magazine (VBF) reported.

Funded by the Government of Japan, this project is based on techniques and technologies applied by Japanese customs authorities and government. Hence, VNACCS/VCIS is expected to become an effective tool for Vietnamese customs authorities and the government, and help the business community carry out customs clearance procedures.

The VNACCS/VICS system automates many tasks like automatically determining the tax rate for each HS code, including special preferential tax rates in accordance with agreements with other nations, and calculating duties on specific merchandise in every declaration sheet, automatically storing modifiable declaration forms. This is a huge benefit for enterprises when they do customs procedures.

The reception and operation of the VNACCS/VCIS system will directly improve the efficiency of customs clearance of imported goods, thus facilitating trade and enhancing Vietnam’s economic competitiveness.

The operation of the VNACCS/VCIS system will help the Government of Vietnam to realise its objectives in the Customs Development Strategy in 2011 - 2020 period and initially meet its commitments to deployment of single-window national customs mechanism and participation in the ASEAN Single Window.

Nguyen Ngoc Tuc, General Director of the General Department of Vietnam Customs said that to carry out the project the parties concerned mobilised every resource and received valuable expertise from specialists in various fields.

All concerned parties made great efforts to compete their enormous workloads like analysing thousands of document pages, dozens of processes, hundreds of forms, and thousands of information indications in a limited time offer.

Currently, the General Department of Vietnam Customs set up personnel apparatus for the system operation from the central to local levels. GDC and its branches have online help desks and hotlines to support enterprises. In early stage, the GDC will send staffs to its branches to operate this system smoothly. Exporters and importers can contact help desks at customs offices they are working with for assistance with VNACCS/VCIS.

Deputy Prime Minister Vu Van Ninh told the Ministry of Finance to collaborate with relevant ministries and agencies to secure resources, connection systems and information technology infrastructure for the stable, sustainable and efficient operation of the system; and to direct the review, analysis and evaluation of system advantages and disadvantages to ask the Government for supplementation, modification, upgrading and expansion.-

Steel industry seeks to overcome difficulties

Although the construction season had begun, the sale volume in April of almost all steel enterprises were lower than March's sale figure, the Vietnam Economic News said on May 19.

The frozen real estate market and the slow development of the construction market and the shipbuilding industry were some reasons that Vietnam Steel Association (VSA) Chairman Ho Nghia Dung told the media when mentioning difficulties of the steel industry. The low growth of infrastructure development was also a reason of the humble steel sales.

The main problem lied in the imbalanced relation between supply and demand on the steel market. According to the South East Asia Iron & Steel Institute (SEAISI)’s statistics, Vietnam ranked first among ASEAN countries in terms of numbers of new steel projects, with more than 30 new steel projects in 2013. Apart from the imbalanced relation between supply and demand, steel enterprises in Vietnam also have to face the pressure caused by cheap steel products from China.

VSA Chairman Ho Nghia Dung said that the steel market remains potential. Steel consumption per capita in Vietnam is 140 kilograms while that in Thailand is 270kg and the world average is 240kg.

While the market remains difficult, many steel businesses have been growing well, including the Hoa Sen Group, Vietnam-Australia Steel Joint Venture Company, the Vietnam-Japan steel joint venture company, and Hoa Phat Steel Joint Stock Company.

Vietnam Steel Corporation (VNSTEEL) General Director Nghiem Xuan Da said that VNSTEEL will restructure its working apparatus, provide support to the five loss making companies and give greater power to subsidiaries to operate more effectively and minimize losses in 2014 and the following years.

Ministry of Industry and Trade’s Department of Heavy Industry Director Nguyen Manh Quan said that steel businesses should reorganise their markets and restructure production to improve quality and competitiveness, and that they should be determined to create good quality, reasonable-price products and approach cost effective production.

VSA Chairman Ho Nghia Dung said that VSA has proposed that the government have solutions to develop the engineering industry to increase steel demand and sales.

BIDV to open affiliate in Myanmar

The Bank for Investment and Development of Vietnam (BIDV) is working to open a commercial bank in Myanmar.

According to BIDV Chairman Tran Bac Ha, BIDV has rent 3,000 sq.m in the Hoang Anh Gia Lai Myanmar Centre project in Yangon to establish the affiliate’s headquarters and transaction place and is ready to invest in a modern information technology system and personnel preparation.

The bank has also proposed cooperation with Myanmar’s Small and Medium Industrial Development Bank (SMIDB) in improving banking services and information technology capacity for the latter.

In April 2010, BIDV established its representative office in Myanmar.-

FDI businesses earn trade surplus in Q1

Enterprises with foreign direct investment (FDI) continued to be a major factor generating trade surplus in the first four months of 2014, the Vietnam Business Forum Magazine (VBF) reported.

FDI businesses created trade surplus of total 4.1 billion USD while domestic enterprises faced a trade deficit of 3.41 billion USD, according to the Ministry of Industry and Trade.

Exports of FDI enterprises continued its high growth rate and made a major contribution to export growth. The country’s overall export in the first four months of 2014 increased 6.6 billion USD compared with last year's same period, of which the value of FDI sector (crude oil excluded) increased 4.7 billion USD (accounting for over 70 percent of additional export value).

The items of large export value and high growth rates were mainly contributed by FDI enterprises, including telephones and components (accounting for 99.6 percent of the country’s production); computer and electronic components (98.4 percent); footwear (76.7 percent); textiles (60 percent), etc.

Export in the first four months grew 16.9 percent over the same period in 2013 while import increased by 13.7 percent. Export surplus was estimated at 683 million USD nationwide, accounting for approximately 1.5 percent of total export value. This was a positive result for export sector in the first months of 2014.

Export of the processing industry group still played an important role, contributing significantly to the growth of the whole sector, rising 19.4 percent compared with last year. Main contribution for this group included mobile phones and components, textiles, footwear, wood and wood products, all are commodities of big export value and growth rate over 20 percent.

Agricultural and aquatic exports increased 14 percent with high growth recorded mainly on aquaculture products (32 percent), coffee (29.5 percent), pepper (41.3 percent), vegetables (23 percent). Mineral and fuels decreased by 10.5 percent with a decline in both volume and value of crude oil and coal products.

Imports of commodities needed for domestic production and consumption as well as for processing and re-export of FDI enterprises continued to grow, accounting for 88.5 percent of total import value. The import volume of many raw materials was increased due to fallen prices.

Imports of some commodities such as mobile phones, small cars under nine seats still had a high growth rate compared with the previous year.

Average export prices of some commodities rose including cashew, tea, rice, coal, crude oil, petroleum. Some items had lower average prices such as coffee, especially rubber’s price downed 24.9 percent, plastics fell 5.3 percent, iron and steel 9 percent.

Influenced by export prices, exports of agricultural products decreased 207 million USD; fuel and minerals increased about 97 million USD. In general, those two groups lost 110 million USD due to fallen export prices.

The first four months of 2014, Vietnam’s exports increased in most markets (except for some western, eastern and northern European countries where it decreased 7.5 percent). The Asian market was estimated at 13.6 percent increase, European markets (12.1 percent), American market( 27.8 percent), in which the United States increased by 26.8 percent, the highest was Brazil with 49.0 percent. Exports to African market estimated rose 14.1 percent; however, exports to some markets plummeted such as: Angola fell 46.3 percent, Ivory Coast decreased 66.4 percent.

Exports of agricultural, forestry and fishery products went up 13.2 percent compared with last year’s same period with many items enjoyed high growth, however, export prices of rubber and coffee, two key commodities, fell.

Exports of processing industrial commodities continued to play an important role, contributing to the overall growth in exports. This group's exports rose 19.4 percent over the same period last year, accounting for 72.2 percent of total exports.

Imports of commodities needed for domestic production and consumption as well as for processing and export of FDI enterprises continued to grow, accounting for 88.5 percent of total import value. The import volume of many raw materials was increased due to fallen prices.

Export value of mineral and fuels in April was estimated at 705 million USD, down 10.2 percent from the previous month and up 0.7 percent compared with the same period in 2013. Export in the first four months of 2014 was estimated at 2.91 billion USD, down 10.5 percent over the same period. Gasoline was the only product in the group experienced exports surplus compared with last year (up 6.4 percent) due to increased exports volume (up 5.4 percent).

Except ore and other minerals increased sharply, export prices of the other commodities remains generally stable. Decreased export volume was the main reason of declined export of this group. In the first four months, the group’s export fell 390 million USD.-

Agro-fishery exports increase in four months

Vietnam’s export of agricultural and fishery products brought in 7.04 billion USD in the first four months of this year, a year-on-year rise of 14 percent.

Aquatic products topped the list, bringing home 2.24 billion USD, 32 percent higher than same period last year.

The exports of cashew, vegetables and fruits, and coffee rose from 16.5 to 29.5 percent.

Meanwhile, several items saw declines in the reviewed period such as rubber (36 percent), cassava and related products (17 percent); and tea (10.3 percent).-

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