PVFCCO makes list of 500 top firms for 10th year
     
PetroVietnam Fertiliser and Chemicals Corporation (PVFCCo) has been named among the Top 500 leading enterprises in Viet Nam (VNR 500) for the 10th consecutive year.

The VNR500 list, issued by the Viet Nam Report Company, shows PVFCCo maintaining its position as the country’s leading enterprise in the fertiliser industry.

PVFCCo was also named in the list of 50 Most Profitable Large Enterprises in 2016, another new ranking of the Viet Nam Report Company, which aims to honour firms with impressive business results and strong financial capacity, as well as a high level of after-tax profits in the past five years.

VNR 500 rankings are based on revenue, profit, total assets, growth, employee number and other criteria.

Vice President of PVFCCo, Duong Tri Hoi, said the company’s VNR 500 listing created a huge impetus for further development. PVFCCo was currently developing projects operating fertiliser production lines, such as its Phu My NPK Plant, to manufacture high-quality NPK fertiliser.

The company is also operating the Phu My Fertiliser Plant, with a capacity of 800,000 tonnes per year, located in Phu My 1 Industrial Zone in southern Ba Ria–Vung Tau Province, providing about 40 per cent of the market demand for fertiliser.

PVFCCo is also actively developing its chemical segment, striving to become the leading enterprise in the country and the region in the field of chemical production for oil and gas.

Central province adds more industry and service complex
     
Quang Nam province has approved the Ha Lam-Cho Duoc Industry-Trade-Service Complex on 83.5ha in Thang Binh district.

The province said the complex will be reserved for investors in agriculture and forestry, seafood processing, pharmaceuticals, mineral processing, garment, leather and craft.

To date, the province has developed 19 industrial parks and complexes on a total area of 4,700ha.

According to latest reports, Chu Lai Open Economic Zone which was opened in 2003 has 109 investment projects, of which 29 are foreign direct investment (FDI) projects with combined registered capital of more than US$1.52 billion. Sixty-six projects, worth more than $837 million, are in operation, creating 12,000 jobs for locals.

The province also invested VND825 billion ($39 million) to dredge the ports of Tam Hiep and Ky Ha, to help cargo ships with capacity of 10,000 deadweight tonnage (DWT) and 20,000 DWT reach them.

Meanwhile, Chu Lai Airport plans to handle 2.3 million passengers and 1.5 million tonnes of cargo by 2025.

Quang Nam has so far attracted 128 FDI projects with total investment capital of $2.1 billion.

Last year, the province commenced construction on two key projects – the Nam Hoi An Integrated Resort Project, invested by VinaCapital and Gold Yield Enterprises Corporations, and the expansion of the Truong Hai-Chu Lai Mechanical Automobile Industrial Zone, with initial capital of $535.3 million. 

Mapping the creative industry

An entrepreneur might immediately equate the concept of the “creative industry” with innovative activities in businesses, but the concept is still quite vague for many.

From identifying to creating attractiveness for the creative industry

Worldwide, creative industries contribute up to 10% of the global GDP and create a commercial value of about US$592 billion dollars. But in Vietnam, according to unofficial statistics, this percentage figure stops at 3-5%—an extremely small number—but overall there are many bright spots.

Monkey Juniors, a learning software for children; Bold Design, a design software for enterprises; and the rise of Flappy Bird few years ago are applications created by young startups in Vietnam that have become popular software in global application stores.

In a major commercial centre in Ho Chi Minh City, visitors can be impressed by a booth selling Vietnamese agricultural products with beautiful, well-designed packaging. The involvement in the packaging designing industry and media and branding campaigns has helped add a great deal of value to agricultural products.

However, the question is how to make these bright spots more common in creative industries, especially when Vietnam has great potential not only in the gaming and software industry, but also in many other fields, such as architecture and handicrafts.

First of all, we should clearly identify what creative industries is and consistently map out appropriate policies to activate promising industries that might create added value for the positive growth of the economy.

As defined by the United Nations Conference on Trade and Development (UNCTAD), in Vietnam the following fifteen professions have are considered creative industries: designing and prototyping; graphic design; advertising and marketing; communications; newspapers and publishing; digital content; handicrafts; fashion design; art performance; music; game and software design; cinema and television; architecture; culinary arts; and creative consulting.

And, more importantly, who will invest in creative industries? Answering this question, Phan Tat Thu, Chairman and Chief expert at KNV Expert Group, who is very enthusiastic about introducing the concept of creative industries to Vietnam, said that creative industries are relatively new, bringing along significant challenges and changes. 

Consequently, State-owned enterprises still do not choose to follow this industry. Large-scale private enterprises have also found no appeal in these industries, as they remain small; and the rest—small businesses—are aware of their potential and are quite interested in creative industries, but they face difficulties due to their limited resources.

From all these things, it can be understood why the contribution of these industries to Vietnam’s GDP is still so small.

Creative ecosystem—Why not?

From the perspective of developing these industries, it is clear that support from the State has not reached them. Experience from countries with creative industries shows that a specialized agency to manage it is needed. Indonesia’s Ministry of Education and Culture is responsible for the management and planning of creative industries’ development.

With the presence of such a specialized agency, difficult issues in the sector’s planning, incubating policies and intellectual property rights issues will also be resolved. This is a vital point, because in creative industries, the biggest asset bringing about surplus value is brainpower and creativity.

After all the above, the remaining issue is how to connect all the pieces for the development of creative industries. Only then can passionate and creative entrepreneurs have more confidence to engage in creative industries.

To create the impetus for the development of Vietnam’s creative industries, it is necessary to build a general map for the sector’s development, starting with the fifteen basic creative industries mentioned above, and connecting them to other industries to build an ecosystem.

Making the AEC work for Vietnamese small business

As the 10 member states of the ASEAN Economic Community (AEC) move towards closer economic integration, more attention must now be accorded to the needs of small businesses, say the experts.

The creation of the AEC in December 2015, intended to support the free flow of commercial goods and services within the 10-member region, was an important economic and policy milestone.

Though larger more sophisticated businesses have and are expected to continue to prosper in the new competitive environment, it is obvious to most all the experts that smaller businesses are now struggling in the new marketplace.

Given that 90% of all businesses in Vietnam are smallholders, the experts say, members of the public, private and social sectors have their jobs cut out for them to make the transition to the AEC a success.

One important first step is to increase small businesses understanding of the AEC and the opportunities it creates. Surveys have shown that the overwhelming number of small businesses (as many as seven out of 10) have little to no awareness or understanding of the AEC.

Only three out of 10 thought they fully understood how the AEC would affect their business operations.

Comprehending the 10 economies, each with its own set of laws and regulations, varying stages of economic development along with differences in business culture and social norms, poses one of the more troublesome aspects of the AEC for small businesses to cope with.

To succeed, these businesses must now recruit high calibre employees with skillsets capable of navigating the laws and regulations of each of the countries their employer plans to conduct operations or trade in.

They must also be able to bridge the wide and varied cultural divides, say the experts.

Most notably, employee recruitment comes to the forefront and requires a more diligent and thorough employee search by prospective small business employers. It also requires them to offer more attractive compensation packages.

The increased openness of the AEC marketplace puts more pressure on the country’s smallholders to innovate and improve employee productivity to remain competitive within the region, the experts underscore.

Most significantly, those with a desire to expand their footprint across the AEC will need to establish close business relationships with established foreign regional business partners in order to bridge cultural differences.

Members of the private and social sectors such as trade associations, colleges and universities have a more pivotal role to play in catalysing the process of fostering strong business networks within the AEC.

In addition, it will take small businesses pooling their limited resources in ventures that seek to maximize the use of those assets.  For example, local small businesses could and should form alliances with local food manufacturers and market their products in other AEC markets under a collective Vietnamese brand, they note.

This would ease the cost burden of attempting to sell their products in other AEC member countries for such things as marketing, selling, general and administrative expenses as well as other overhead costs.

The AEC, they say, requires academia to drive towards better training of the workforce for small businesses, which in turn directly bears on improving labour productivity. It also readily lends itself to advances in innovation that leads to enhanced quality of products from both cost and quality perspectives.

In terms of the law, they say, the AEC places greater emphasis on the government to put in place a regime that is well thought out and established in clarity in terms of both intellectual property protection and enforcement.

Vietnamese small businesses must now evolve and move from producing commodities on a large scale having tiny profit margins to smaller support industries focusing on manufacturing or production processes that add high value with large profit margins.

They must most of all—learn the importance of establishing good brand reputations that have the capability of expanding within and without Vietnam and position themselves for competition within the much larger AEC and global marketplaces. 

Buoyant investor morale brightens economic outlook for 2017

The mood among Vietnamese analysts and investors is sanguine in the early weeks of 2017 after an overall solid economic performance report card for the Vietnam economy last year, say experts.

The General Statistics Office has reported that the GDP rebounded strongly in the second half of 2016 registering growth at 6.21% for the year after a slight dip in the first six months— and is now on track for continued healthy growth in 2017.

This puts Vietnam at the top of Asian countries in terms of GDP growth, which had been projected by the Asian Development Bank to grow overall at 5.7% for 2016, slightly down from the 5.9% growth in 2015.

Manufacturing, construction, and services expanded robustly in Vietnam during 2016, driven by inflows of foreign direct investment. Disbursed foreign investment surged to a record US$15.8 billion last year

However, growth in the GDP was weighed down by weak performance in agriculture and mining that were crippled by natural disasters, droughts and floods, particularly in the Mekong and Central regions.

Inflation stirred during 2016 but remained moderate as the government manged to keep it in check, measuring 4.47%, which was well within the maximum target rate of 5% set by the National Assembly at the beginning of the year.

In the last two months of 2016, the Manufacturing PMI climbed to an 18-month high thanks to a surge in new orders, while industrial output accelerated, which bodes well for production heading into 2017.

The ongoing rise in output for last year is reflected in the double-digit annual growth in exports observed for the year. Manufacturing and commercial trade look set to continue in the new year as the two main drivers of growth.

The country took further steps last year to expand its geographical footprint into foreign markets through the negotiation of several strategic bilateral and free trade agreements, foremost among them those with the EU and the Eurasia economies.

International travel into the country jumped significantly in 2016 with the number of foreign business and tourist arrivals having increased by an estimated 25%, apparently boosted most by the creation of the AEC and associated business travel.

Against this backdrop, the withdrawal of the US from the Trans-Pacific Partnership (TPP) by President Trump is unclear at this point. 

While it is true that economic expectations were high for Vietnam under the proposed TPP, until new bilateral or free trade agreements are worked out with the US and other TPP members, it is impossible to gauge the overall impact.

Notably, Vietnam stock analysts say the benchmark index will jump to a 10-year high this year as the strengthening economy, sales by the government of its stakes in state-owned enterprises and growing company listings continue to entice portfolio investors to the Southeast Asian country’s market.

The VN Index, they say, will rise to 745 by the end of 2017, or 12% above its 2016 closing level, according to the average estimate of 11 analysts surveyed by Bloomberg News. 

More businesses try their hand as customs simplifies procedures

The number of companies involved in foreign trade has increased, indicating simplified customs procedures, a senior official of the Customs General Department said.

“In 2016 import-export companies increased by 15.4 percent from the year before to 73,170,” Nguyen Cong Binh, deputy head of the department, was quoted as saying in Thoi bao Kinh te Vietnam (Vietnam Economic Times) newspaper.

Last year the department received nearly 10 million customs declarations, an increase of 17.2 percent, with declarations for exports increasing by 14.4 percent to 4.76 million, and for imports by 19.8 percent.

There were 943,000 vehicles entering and leaving the country, an increase of 2.8 percent.

The department has adopted new technologies and regulations to help reduce the time it takes to make checks while also improving oversight of the movement of goods.

“Early in March customs will work with relevant authorities to deploy a national one-stop check at airports like it has done at seaports,” Binh said.

Nguyen Van Can, the customs chief, said, “The industry has focused on dealing with many existing problems and now we have recognised 700 companies as customs agents and granted agents’ codes to 1,170 of their staff.”

He revealed that since installation of new systems have not been completed at seaports yet, customs procedures remain slow.

The software used by businesses and customs and port management units are different and so need to be made compatible, and cameras have not been installed in some port warehouses to monitor the movement of goods, he said.

“We have not been able to set up a national one-stop check on the rail and road networks due to lack of regulations and [as a result] all checking is done manually, reducing efficiency.”

He said border smuggling is very sophisticated.

But monitoring of domestic waterways is not efficient because of their complex networks, he said.

“There is no master plan for customs warehouses on borders while border gates attract too many goods with poor infrastructure, leading to an overload [at the gates].

“Customs is trying to strengthen the checking system to improve oversight and reduce the time it takes for enterprises.”

PM vows to introduce clean farm produce to the world

Prime Minister Nguyen Xuan Phuc pressed the button to launch a high-tech agricultural production at a VinEco farm in the northern province of Ha Nam on February 2. 

As one of the 14 VinEco farms invested by VinGroup, the project sprawls over 180ha at a cost of nearly 300 billion VND (13 million USD), including a large-scale model field of about 130ha, a 5ha greenhouse area using Israeli technology and manufacturing facilities. 

The greenhouse No. 1, using Israeli dripping technology, covers an area of 8,300 sq.m and is capable of providing around 150 tonnes of leafy vegetables per year. 

On the 130ha model field, VinEco Ha Nam will develop nearly 15 kinds of key produce with a daily capacity of 20-30 tonnes for domestic and foreign consumption. 

Speaking at the event, the PM described agriculture as an economic pillar of the country and called for developing organic and smart farming with the involvement of private businesses and cooperatives, pledging to introduce Vietnam’s clean farm produce to the world.

He asked the State Bank to increase the value of preferential credit package, from 60 trillion VND to 100 trillion VND (2.6-4.34 billion USD), to high-tech agriculture firms. 

The province was required to develop labour force to expand markets, popularise trademarks and improve packaging, thus ensuring stable consumption. 

In such spirit, he requested localities to expand coverage for farming to submit to authorities for approval as well as provide all possible support for the field. 

He suggested further encouraging start-ups operating in agriculture and enhancing technology transfer. 

The government will drastically protect trademarks and legitimate interests of businesses and cooperatives working in high-tech agriculture, he vowed. 

In the morning the same day, the PM visited Japan’s Sumi Vietnam Wiring System company in Dong Van II industrial park in Duy Tien district and Ha Nam high-tech agriculture investment and development company in Nhan Khang commune, Ly Nhan district.-

VnSteel aims to increase revenue by 800 billion VND

The Vietnam Steel Corporation (VnSteel) aims to earn consolidated revenue of 18.8 trillion VND (835.5 million USD) in 2017, an increase of 800 billion VND from 2016.

It will produce around 2.4 million tonnes of steel billets this year, up 17 percent from 2016, VnSteel said.

To accomplish these goals, VnSteel will work on improving its business efficiency through better market forecast analysis, better corporate governance and supervision and close monitoring of activities, senior company leaders said.

The corporation will also focus on enhancing the quality of its human resources, it will practise thrift and strive to prevent corruption, under the direction the Ministry of Industry and Trade and the prime minister.

VnSteel has suggested that the Government put in place policies and measures to control the import of steel products that the domestic steel industry is able to produce, particularly the massive import of cheap Chinese steel; and fight anti-commercial fraud that is damaging to domestic producers.

In 2016, VnSteel produced around two million tonnes of steel billets and met its target, which was also a year-on-year increase of 24 percent.

The production and utilisation of construction steel crossed three million tonnes, approximately 105 percent of the estimate. It accounts for 39 percent of the domestic market share.

Rice/shrimp rotation a hit in Bac Lieu

Farmers in the Mekong Delta province of Bac Lieu have had bumper harvests of paddy rice and shrimp with higher profits and yields than in previous years.

Farmers who take part in the rice/shrimp rotation model on the same field have also seen fewer outbreaks of disease.

Luong Ngoc Lan, head of the province’s Department of Agriculture and Rural Development, said that the 2016-17 rice/shrimp rotation crop covered more than 31,000 ha, an increase of more than 10,000 ha compared to the last crop.

The harvest, which ends in mid-February, is expected to bring profits of 50 million VND (2,202 USD) per ha, he added.

The rice/shrimp rotation model uses no chemicals or fertilisers for paddy rice, while shrimp are not fed, which saves costs.

Lan said that safe and clean shrimp and rice would sell easily as they are favoured by customers

Mai Van Thiet of the province’s Hong Dan district, who has expanded his field to two hectares, said that he had received training in modern cultivation techniques, including shrimp breeding and selection of seeds for paddy rice.

Irrigation systems have also been built in the fields.

Last year, the result was a good harvest, leading to profit of more than 250 million VND (11,013 USD) from two crops of shrimp and one for paddy rice, Thiet said.

Tang Van Dinh of the province’s Phuoc Long district , who had a bumper harvest of shrimp, operates a farm that covers more than one hectare, generating profit of more than 20 million VND (879 USD).

Pham Thanh Hai, chairman of Phuoc Long district People’s Committee, said his district had more than 9,000 hectares for rotating rice-shrimp, an increase of more than 2,000 ha compared to the last crop.

Shrimp production was nearly 0.2 tonne per ha and nearly five tonnes per ha for paddy rice, he said.

He expects profit of more than 50 million VND per hectare for shrimp and paddy rice, double compared to rice monoculture in the past.

By 2020, the province aims to expand rice-shrimp farming to 40,000 ha, mostly in Hong Dan and Phuoc Long districts and Gia Rai town.

Dong Hai district in the Mekong Delta province of Bac Lieu is focusing on developing its coastal and sea areas, considering them to be important zones that help the district become a locality with strong marine economic development.

To effectively realize this target, Dong Hai district is concentrating on reviewing, adjusting and supplementing its socio-economic development master plan for the 2010-2020 period with a vision to 2030. 

The district is carrying out socio-economic development planning, sectoral development planning alongside adjusting land use planning in accordance with sea-based economic development orientation and the locality’s advantages. 

Dong Hai is further diversifying its policies to attract resources for sea-based development, effectively exploiting and using the province and the government’s support to sea-based infrastructure development, further controlling and preventing sea environment pollution, building an observing system and early warning of sea environment incidents and activities to destroy the sea environment for timely prevention and settlement. 

Phan Hung Viet, Secretary of the district’s Party Committee, said the locality has directed relevant agencies to review, build plans and put forth measures to protect marine resources and coastal areas. 

Dong Hai district has strengthened the inspection and control of fishing and exploration activities. It has enhanced cooperation with other localities in sea transport, tourism, sea environment protection, cooperation in search and rescue at sea, scientific research and technology transfer. 

Besides, the district has also promoted activities to raise awareness of protecting marine and coastal resources and planting mangrove forests among local people, especially those living in coastal communes.

Dong Hai district has implemented solutions to cope with the consequences of climate change and sea rising along with popularising the Party and State’s policies on the East Sea, islands, developing the economy in parallel with sea and coastal environment protection. The locality has paid attention to directing local fishermen to abide by legal regulations relating to fishing activities and protecting aquatic resources. 

The district has effectively organised the “Sea and Island Week”, launched every year with different themes by the Ministry of Natural Resources and Environment in coastal areas to raise public awareness of sea resources conservation, exploitation and use. 

It has made public urgent issues and policies on aquaculture at coastal and sea areas so that organisations and individuals can implement them timely.

It has also worked with competent provincial agencies to accelerate the adjustment of a plan to develop Ganh Hoa town in accordance with a plan to develop the Ganh Hao sea-based economic area and Ganh Hao seaport and complete important projects such as the viaducts and service areas at sea. 

Regarding aquatic product processing and sale, the district is focusing on restructuring aquatic processing plants, encouraging enterprises to upgrade technology, raise their production scales and build more warehouses. 

It is also paying heed to purchasing and processing goods serving export in the fields of aquatic product processing and salt production. The district is paying attention to improving the output and quality of products to sharpen their competitive edge in the market. 

Regarding fishing and exploitation activities, the district is creating favourable conditions for investors to build new shipyards at the Ganh Hao Sea Economic Area, encouraging them to expand production and build new ships using new materials, such as iron, composite, call for investment in ship repair services, developing mechanical engineering, transport, manufacturing and fixing means of transport, developing maintenance and logistic services to meet the demand for sea-based economic development, especially offshore fishing activities. 

With the above-mentioned solutions, Dong Hai district determines to fulfill its target of developing the sea-based economy comprehensively in the near future, to create an impetus for structure shifting and economic development to become a key sea economic locality of Bac Lieu province.

Khanh Hoa province strives to develop marine economy

The south central coastal province of Khanh Hoa has advantageous nature and infrastructure to develop a marine economy as well as sea and island tourism. 

Khanh Hoa province possesses 385 kilometres of coast. It also has more than 200 near and offshore islands and islets, including Truong Sa (Spratly) archipelago, which holds an important role in socio-economic development, as well as in defence and security, of the locality and the nation as well.

With such strengths, Khanh Hoa province has prioritised sea exploitation and tourism development.

Currently, the marine economy of the province accounts for more than 30 percent of the gross regional product domestic product (GRDP). The province has encouraged the development of its three pivotal economic zones, which link with Van Phong, Nha Trang and Cam Ranh bays.

The Van Phong, Nha Trang and Cam Ranh bays are famous for their scenic views and economic and defence values. As deep-water bays, surrounded by high mountains, the bays are good for the construction of seaports, fishing logistics areas and storm shelters for fishing vessels.

The province aims to develop the marine economy so it account for about 60 percent of its gross domestic product and exports from the sea-based economy are aimed at 70 percent.

The province has become a major tourism centre and contributes 12 percent to annual GRDP. 

From 2012 to 2015, the average revenue from sea and island tourism reached more than 4.8 trillion VND per year. The figure is estimated to be 7.1 billion VND in the first 10 months of 2016, increasing by 121 percent year-on-year and fulfilling 92 percent of the year’s plan.

Khanh Hoa province and Nha Trang city have many high quality accommodation establishments along its coast. Of more than 610 hotels in the province, over 70 hotels have from three- to five- star ratings.

The number of tourists coming to Khanh Hoa province in 2015-2030 is expected to increase by 1-1.2 million people. Total revenue gained from foreign visitors is hoped to rise from 286 million USD to 972 million USD and increase from about 112 million USD to 509 million USD from domestic visitors.

Currently, Khanh Hoa is focusing on developing sea and island tourism in combination with conserving natural resources and historical and cultural heritage. The province also aims to be a frequent host of major domestic and international events. 

In addition, the province also set up new industrial zones with heavy industry factories using sea advantages to attract domestic and foreign investment.

Van Phong economic zone is the largest zone of the country in terms of scale, with a total area of 150,000ha. The Government aims for it to become a general economic zone, with transporting containers its main role.

The province’s sea port system has also improved over the years. Cam Ranh Port is the leading deep-water port of Vietnam which is near the international marine route.

Upon completing the enhancement process, Cam Ranh Port is able to receive ships with capacity of up to 50,000 tonnes. It is also expected to be a modern logistics centre, contributing to effectively using the advantages of Cam Ranh Bay.

The procedures to change the function of Nha Trang Port are also underway, as the port will be used only for tourism. Meanwhile, in an effort to protect the environment, factories responsible for pollution will be moved out of the city.

Khanh Hoa province is also among six provinces to build large fishing centres to serve the region’s fishing sector. Estuaries with sea lagoons and bays create favourable conditions for fishery. Nha Phu and Thuy Trieu lagoons, in particular, are sources of the province’s aquatic products.

Kien Giang boasts huge tourism potential

Due to the region’s desirable natural conditions, the Mekong delta province of Kien Giang has marked out four key tourism development zones, in the hope of satisfying travellers’ demands for discovery, relaxation and sightseeing.

It is no exaggeration to say that Kien Giang is a natural ‘masterpiece’. The locality is home to plains, hills, forests, rivers, seas and islands, providing itself with a significant advantage for tourism development, even when compared to other areas in the Mekong Delta region.

This is a solid basis, amongst favourable conditions, for Kien Giang province to make its otherwise lacking industry begin to thrive.

As part of Kien Giang province, Phu Quoc island district is experiencing increased interest, as investors push to make it a high-end tourist destination. The district boasts Ngoc Island which features unique terrain, including a mountain range that is inhabited by many vibrant species of plants and animals. 

Its beautiful beaches and its system of 26 islets create a picture of breathtaking beauty.

The province’s Ha Tien - Kien Luong region, with scenic spots such as Mui Nai, Hon Trem, Hang Pagoda, Binh San Mountain, and the mountains To Chau, Da Dung and Thach Dong, will make a lasting impression on visitors. Its islands are associated with fairy tales, many of which contribute to local beliefs.

In coming to the Rach Gia - Kien Hai region, visitors cannot help but be surprised by the impressive sea encroachment work that has been completed to expand the town of Rach Gia.

In addition, this coastal town is home to the sites of many valuable cultural and historical relics, along with unique architectural works by the three main ethnic groups: the Kinh, the Hoa and the Khmer.

During folk festivals, the locality’s well-known destinations, such as Nguyen Trung Truc Temple, Tam Bao Pagoda, Phat Quang Pagoda, Quan De pagoda and Khmer Pagoda, attract millions of tourists every year.

The Nam Du archipelago and Hon Tre Island (in the Kien Hai island district) are among travellers’ top choices for exploration, with their pristine natural landscapes and healthy environment.

U Minh Thuong National Park is part of the Kien Giang Biosphere Reserve, where visitors are provided with the opportunity to discover globally rare ecosystems, such as submerged tropical forests and peat swamps, which still thrive in Vietnam.

The park is home to a diverse range of flora and fauna, with around 254 species of vascular plants, 32 species of mammals, 188 species of birds and 64 species of fish. Many of these species are listed in both Vietnam's and the world’s Red Book of endangered species.

In order to make full use of the natural potential and inherent strengths in the four key tourist zones, Kien Giang province has mobilized all resources to invest in developing infrastructure that will serve tourism development.

Major infrastructural works have already been put into use, including the upgraded Rach Gia Airport, the Phu Quoc International Airport, in addition to a number of sea ports such as Rach Gia, Bai Vong and Duong Dong, along with transport and power systems on the island of Phu Quoc.

The province will invest further in the construction of infrastructure at many tourist attractions, as well as upgrading historical, cultural and scenic sites to serve tourists. These sites include Phu Quoc Prison, U Minh Thuong historical site, Binh San mountain, and Phat Quang pagoda.

Kien Giang province has attracted more and more investment in tourist industries, even at a time when the island district of Phu Quoc has seen rapid development of tourist infrastructure and facilities.

Tran Chi Dung, Director of the Kien Giang Tourism Department, said the province has so far attracted more than 270 projects which are being implemented in all four tourist zones, with a total registered capital of approximately 232 trillion VND. 

"Kien Giang province is focused on using tourism to develop a spearhead for its economic sector, which has experienced fast and sustainable growth. It is expected to become an attractive destination and tourist center, not only within the Mekong delta region and the country, but also across Asia and even the world,” said the director.

He added that the province has set a target of welcoming 6.8 million tourists by 2020, including 450,000 foreign visitor arrivals. This represents a projected average annual growth of 9.5 percent.

Vietnam expects closer business connectivity with South Africa

Vietnam hopes to increase the exchange of economic information with South Africa and enhance closer connectivity between businesses of the two countries, stated Vietnamese Ambassador to South Africa Vu Van Dung.

Dung had a meeting with leaders of South Africa’s Durban Chamber of Commerce and Industry (DCCI) on January 30 to discuss issues related to cooperation between Vietnam and South Africa as well as the embassy and the DCCI.

The Vietnamese diplomat held that Vietnam and South Africa - a large economy of Africa and the world – still hold great potential for stronger trade cooperation although two-way trade reached only 1.2 billion USD in 2016.

Vietnam will host the APEC Year 2017 with about 200 activities along with the APEC High-level Week at the end of the year, which is a good chance for enterprises from Durban and South Africa in general to tighten connections with their partners in Asia-Pacific region, he said.

Dao Manh Duc, head of the Vietnamese Embassy’s office for trade affairs, said that although Vietnamese products are suitable to the South African market, they have yet been popular among South African consumers and businesses due to a lack of information as well as business exchange channels.

Meanwhile, South Africa’s strong products such as beef, fruits, wine and mineral products have yet to successfully enter the Vietnamese market, said Duc.

He also asked the DCCI to enhance the sharing of information and partnership opportunities through trade promotion events hosted by the DCCI and increase meetings between trade delegations of both sides.

Alta Keyter, DCCI Director for Marketing and Communications, said that in the future, the DCCI will promptly update information about Vietnam’s goods, tourism and trade fairs and exhibitions in its news bulletins, while actively exchange information with the Vietnamese Embassy to provide South African businesses with chances to study the market, products and tourism of Vietnam.

Durban is the largest port city in South Africa as well as a major container port of the South Hemisphere. It is an economic hub of South Africa with diverse sectors including production, tourism, transportation, finance and import-export activities. With long beaches, warm weather and unique culture, the locality is also an attractive tourist destination.

The DCCI was established in 1856, grouping over 2,800 firms. It is one of the largest and most prestigious commerce and industry chambers of South Africa.

Sustainable management and exploitation of coastal areas

Vietnam aims to develop the sea-based economy to help the country benefit from the sea and secure national sovereignty and sovereign rights over sea and islands, contributing to the country’s industrialisation and modernisation. 

To defend and sustainably exploit sea and islands, priority should be given to coastal areas which cover 28 provinces and cities, accounting for 17 percent of the country’s total area and home to nearly 20 million people.

These coastal areas have achieved significant results, especially tourism, fisheries, water transport and the processing industry. Together with them are the formation and development of coastal cities. However, the areas are facing many challenges regarding the environment, natural resources and other issues related to social safety and security and climate change.

Eco-value is the first thing to mention when talking about the value of coastal areas. Coastal wetlands play an important role in the country’s socio-economic development. The ecosystems of the coastal wetlands are arranged along the coast. They are located at estuaries, lagoons, sandy beaches and wetlands used for farming and aquaculture covering more than 7 million hectares.

In coastal areas there are also island and forest ecosystems. The majority of the 3,000 islands in the sea are located in the northern province of Quang Ninh, forming the World Natural Heritage site of Ha Long Bay recognised by the United Nations Educational, Scientific and Cultural Organisation (UNESCO). Some coastal forests are hot and humid tropical rainforests, or coniferous forests with many species making up valuable biodiversity. Some forests have been included in the list of national parks in need of special biodiversity protection. 

By 2015, Vietnam will have 16 marine protected areas, including Tran Island, Co To (Quang Ninh province); Bach Long Vi and Cat Ba (Hai Phong city); Hai Van-Son Tra (Thua Thien Hue province -Da Nang city); Con Dao (Ba Ria-Vung Tau province) and Phu Quoc (Kien Giang province).

Sea and coastal areas offer the country abundant aquatic resources, with annual production output of about 1.8-2 million tonnes. Rainfall in the coastal zone ranges between 1,000-3,000mm a year, creating abundant water resources. In addition, there are promising oil and gas fields, namely Song Hong, Phu Khanh, Cuu Long and Nam Con Son.

The coastal areas of Vietnam are rich in coal and minerals. This includes 500 mineral mines and quarries, with 64 minerals discovered in the coastal areas, such as fuels, metals, non-metals, precious stones and mineral water. There are good quality glass sand deposits which have an explored reserve of over 300 million tonnes (the forecast reserve is about 700 million tonnes). The elements of Titan, Iimenit, Monaxit, Zircon have also been found along the coast.

Besides, many well-known cultural-historical sites are found in coastal areas, such as Hoi An ancient town and My Son Sanctuary in the central coastal province of Quang Nam, the imperial city of Hue in the central coastal province of Thua Thien – Hue and over 100 beaches which attract many domestic and foreign tourists.

Thanks to being located near the international maritime route, Vietnam has favourable conditions for the development of ports and maritime transport. Currently goods transported via sea routes account for 70 percent of the total amount of transported goods, of which import and export activities make up 72 percent. 

After 30 years of renovation, Vietnam's economy in general and sea-based economy in particular has flourished. The marine economy contributes between 47 percent and 48 percent to the country’s gross domestic product. Sea-related industries including oil and gas contribute 64 percent, seafood, 14 percent, shipping and port services, 11 percent and marine tourism, 9 percent.

Sea resources serve national socio-economic development

As the 21st century is considered an era of sea and ocean, many countries, including Vietnam, have paid heed to developing the sea-based economy and exploiting sea resources and spaces to promote their socio-economic growth while working to safeguard sovereignty and sovereign rights over sea and islands.

Vietnam has over 3,260 kilometres of coastline. The country’s exclusive economic zone covers about one million square kilometers, which is three times larger than its mainland area.

On average, each square kilometer of mainland goes with approximately 4 square kilometers of territorial sea, and every 100 square kilometers of mainland has one kilometer of coastline.

Coastal localities across the country have a combined area of 208,560 square kilometers, accounting for 51 percent of the country’s total area, and a population of more than 40 million, half of the country’s total.

Vietnam also has more than 3,000 islands and islets, mostly in the Northwest of the Tonkin Gulf, some lying near the coast of the central and south central regions, and two offshore archipelagos, which are Hoang Sa (Paracel) in the central city of Da Nang, and Truong Sa (Spratly) in the south central province of Khanh Hoa.

According to the Ministry of Natural Resources and Environment, the total area of localities bordering the sea is about 6 million hectares, including more than 2 million hectares of farming land and about 1.8 hectares of forests.

There are about 250,000 hectares of mangrove forests spanning in the southern and northern coast and few are found to grow in the central region. A total area of 40,000 hectares of lagoon area spans central areas from Thua Thien - Hue to Binh Thuan, which is a good environment for aquaculture to thrive.

Alongside, there are about 290,000 hectares of tidal flat and tens of thousands of hectares of sand area along the central coasts.

Vietnam’s sea surface is from the coast of the northern district of Mong Cai to southernmost Ha Tien province while underground water in coastal areas and islands is plentiful, estimated to provide 14 million cubic meters per day.

Especially, oil reserves in Vietnam’s continental shelf and exclusive economic zone have been evaluated to be abundant, having about 4 billion cubic meters of equivalent oil (as of the end of 2010).

Natural minerals in coastal areas as well as on islands have been valued as more than 300 mines and ore containing places, including 59 titan mines and places, have been discovered so far.

Statistics show that Vietnam has over 600 million tonnes of ilmenit titan ore, along with 13 mines of crystal sand with a reserve of over 144 million cubic meters. The coastal region also boasts a rich resource of minerals that are used to make construction materials, including limestone and rocks.

Up to 11,000 species of animals and plants have been found in more than 20 typical ecosystems in six different waters regions across the country. Among the species, about 6,000 species live in the seabed, and there are over 2,000 species of fish, 653 species of seaweeds and 657 species of zooplankton and 537 species of phytoplankton. 

There are also 94 mangrove plants, 225 species of sea shrimp, 14 species of sea grass, 15 species of sea snakes, 12 species of sea animals and five species of turtle.

Coral reefs and seaweeds as well as other resources with high value have also been exploited in service of the socio-economic development of the coastal and island localities.

In addition to that, many other sea-related resources, including seaports, wind power, solar and tidal power, have also been explored to serve people’s life.

Generally, the quality of water in coastal localities, estuary and offshore is good, meeting the socio-economic development requirements. Typical ecosystems, including islands, sand dunes, estuaries, mangrove forests and lagoons, have contributed to the diversity of Vietnam’s sea, making the country one of the biodiversity hubs of the world.

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