HCM City pulls out all the stops for Samsung

Samsung has invested heavily in HCM City and we are pulling out all the stops in 2015 to meet the commitments we made to the company, said Le Manh Ha, HCM City’s People’s Committee Vice Chairman.

Ha made the statement at a planning meeting on January 20 for the Saigon Hi-Tech Park underscoring the economic importance of Samsung’s new project to construct a US$1.4 billion electronics facility in it.

Last year, the Saigon Hi-Tech Park attracted 10 foreign invested projects and nearly US$1.9 million of investment.

Foreign invested projects in the park grossed over US$3 billion in sales and accounted for over 90% of the city’s total export value.

In 2015 the hi-tech park should concentrate on upgrading infrastructure, mobilizing resources and focus on encouraging more environmentally friendly productions processes and most importantly, on facilitating construction of Samsung’s new manufacturing plant, said Mr Ha.

On the occasion, Saigon Hi-Tech Park and Fab Max B.V from the Netherlands signed a memorandum of understanding (MoU) on human resource training in the micro-semi conductor sector with the Government of the Netherlands.

Petrol prices cut by 1,900 VND per litre

The price of RON95 gasoline was slashed by 1,900 VND down to 16,270 VND on the afternoon of January 21, according to the Vietnam National Petroleum Group (Petrolimex).

RON92 and bio-fuel E5 also experienced a similar price cut, down to 15,670 VND.

Meanwhile, diesel prices were reduced by 1,460 VND, resulting in a cost between 15,120 and 15,170 VND per litre.

Kerosene now stands at 15,610 VND, a reduction of 1,500 VND, while fuel oil (FO) is priced at 11,750 to 12,220 VND per litre, 1,080 VND lower than the previous price.

Petrolimex attributed the move to the continued decline of global petrol prices, saying that these reductions are in line with regulations on petrol and oil prices stated in Government Decree 83/2014/ND-CP on September 3, 2014.

This is the fifth time the price of petrol and oil has been adjusted in accordance with the Decree.

In 2014, petrol prices were increased five times and have been cut twelve times since July with a total reduction of 7,769 VND per litre.

HCM City, Japan discuss agricultural cooperation possibilities

Ho Chi Minh City and Japan see high potential for bolstering bilateral cooperation in agriculture, said Secretary of the municipal Party Committee Le Thanh Hai while receiving Japanese Minister of Agriculture, Forestry and Fisheries Koya Nishikawa in the southern economic hub on January 20.

The City is closely linked with the Mekong Delta, dubbed Vietnam’s largest rice granary, and the Southwest and Central Highlands regions, which are considered the centres for industrial plants. In recent years, it has also paid attention to applying advanced technology in agricultural production, Hai told his guest.

He pledged to create as many favourable conditions for Japanese enterprises operating in the city as possible, while directing relevant agencies to speed up cooperative activities between the two sides.

Speaking of the City’s socio-economic development efforts, Koya Nishikawa said there are increasing numbers of Japanese investors eager to do business in Vietnam and contribute to the country’s development.

At the meeting, representatives from Japanese businesses suggested both sides intensify technology transfer and production of high-quality agricultural products.

Vinaconex to launch huge volume of real estate projects

Seeking to generate total revenue of 10 trillion VND (465.4 million USD) in 2015, the Vietnam Construction and Import–Export JSC (Vinaconex) is implementing a large number of real estate projects across the capital city of Hanoi.

Accordingly, Vinaconex is negotiating with An Khanh JVC to begin construction on the second phase of Splendora New City in Hoai Duc district, while speeding up analysis, planning and procedure support for its other important projects.

Vinaconex plans to concentrate its capital and human resources on major projects such as upgrading the outdated apartments at 97-99 Lang Ha street and building infrastructure for the Hoa Lac high-tech park.

This year, the corporation targets a pre-tax profit of 650 billion VND (30.2 million USD).

To achieve this, it has capitalised on its financial strength and the quality of transportation infrastructure. Top priorities for the firm include increasing competitiveness, applying additional advanced technologies and recruiting highly qualified staff.-

Indian businesses to promote trade in Vietnam

Deputy Prime Minister Hoang Trung Hai said he was glad to see India is looking to boost cooperation with Vietnam in economics, trade, and investment, and thrilled that they consider Vietnam a centerpiece of their Look East Policy.

The Deputy Prime Minister made the remark at a reception for Indian Deputy Minister of Commerce and Industry Rajeev Kher in Hanoi on January 20.

He noted that the Indian government is providing increased support for Indian businesses looking to enter the Vietnamese market, especially for high-added value products.

The official suggested the two countries actively coordinate measures to implement agreements and commitments between the two governments during Prime Minister Nguyen Tan Dung’s visit to India in October 2014.

He also proposed India minimise trade and tariff barrier measures against Vietnamese exports, while encouraging businesses to increase trade activities in Vietnam and support Vietnamese partners looking to attend trade fairs and business forums in India.

The two sides must advance the implementation of oil and gas exploration agreements in Vietnam between the Indian multinational Oil and Natural Gas Corporation (ONGC) Videsh and the Vietnam Oil and Gas Group (PetroVietnam).

Within the multilateral framework, the pair should actively work together to implement the Free Trade Agreement (FTA) between the Association of Southeast Asian Nations (ASEAN) and India on goods and services and move forward with negotiations for the Regional Comprehensive Economic Partnership (RCEP).

Rajeev Kher said India is eager to cooperate with Vietnamese partners in agriculture, health, trade, and industry.

He also said India hopes to assist and exchange experience with Vietnam in other fields such as information technology and software, key strengths of his country, to enhance Vietnam’s competitiveness in the sectors.

India and Vietnam are working to bring their trade to 7 billion USD in 2015 and 15 billion USD in 2020.-

Transport fees fall on fuel price cuts

The Ministry of Finance said last Friday that transport charges in 38 of the country’s 63 provinces and cities have been lowered relatively in proportion to the recent fuel price reductions.

At the request of the Ministry of Transport, the Ministry of Finance has adjusted down the ceiling airfare by 15% from the old cap set in late 2011. Train fares have also been reduced by 10%.

As reported by 38 cities and provinces, taxi fares have dropped 0.9-26.3%, with the popular reductions ranging from 3% to 10%. Meanwhile, bus ticket prices have knocked down by 3-21.7%, but mostly 5-10%.

According to the Ministry of Finance, the fare reductions vary as many enterprises maintained the fares registered in 2011 and 2012 or revised down the charges by a slight 1% to give scope for readjustment in the event of a fuel price rise.

Enterprises that increased their transport charges last year made deeper cuts, around 20%.

Such cuts, according to the Ministry of Finance, are suitable.

With road cargo transport, fuels account for 25-35% of the transport costs for vehicles running on gasoline, mainly taxis, and 35-45% for diesel-fueled autos, chiefly buses and trucks. With the current fuel prices 27% lower than on January 1, 2014, the average reductions of transport charges, 3-10%, are just fine, according to the ministry.

In the coming time, the Ministry of Transport will coordinate with the Ministry of Finance to inspect transport charges in some localities like Haiphong, Hanoi, Nghe An, Danang, Khanh Hoa, Dak Lak, HCMC and Can Tho.

The Ministry of Finance will also continue urging enterprises that have not made a move to lower fees. Those refusing to do so will be fined in accordance with Decree 109/2013/ND-CP of the Government.

Vietnam tightens measures on aquatic animal health

Deputy Minister of Agriculture and Rural Development Vu Van Tam delivered a keynote address on January 20 at the opening ceremony of the third OIE Global Conference on Aquatic Animal Health in HCM City.

As a member nation of the World Organisation for Animal Health (OIE), Tam said, Vietnam has committed to co-ordinating with the international community to effectively implement measures on aquatic animal health and tighten controls over epidemics and antibiotics residues.

Vietnam’s aquaculture sector has played a fundamentally important and critical role in the country’s economic development with the sectors annual output increasing 4-6% on average.

However, if the sector is to develop sustainably then it must take drastic measures to effectively prevent epidemics and control antibiotic residues in seafood products.

General Director of the OIE Bernard Vallat in turn echoed Tam's view and added that aquaculture has been recognised as the world’s fastest growing food production sector with nearly 50% of the supply source coming from aquatic products.

However, epidemics have caused remarkable damages to aquaculture production, making a negative impact on the economies in some nations and the region.

He stressed the need to strengthen state management over aquatic animal health and implement veterinary measures effectively, obey OIE standards to prevent epidemics.

Mr Vallat underscored the importance of the conference which he said helps raise member nations’ awareness about the need to control veterinary services and aquatic animal health in the private and public sector.

Conference proposes anti-corruption measures

The Ministry of Planning and Investment (MoPI) and the World Bank (WB) on January 20 co-hosted a high-level conference on strengthening governance to promote development in Vietnam.

The event was designed to propose anti-corruption measures and improve the efficiency of public funds, particularly ODA funding in Vietnam.

Negative phenomena, fraud and corruption in ODA projects remain a major concern for Vietnamese management agencies and donors.

During nearly 30 years of pursuing the Doi Moi (Renewal) process, Vietnam has received approximately US$80 billion in ODA which has been primarily allocated to infrastructure development projects to upgrade transport system, seaports and airports.

Speakers said the complex and time-consuming projects have been prone to acts of corruption and fraud. However, they acknowledge the number of fraud cases were limited.

According to them, fraud and corruption have been principally found in the bidding process and relate to misrepresentation of financial capacity and experience in bidding packages or collusion among domestic firms.

Solutions were put forth with emphasis placed on reinforcing the law enforcement by complying with bidding regulations on risk management and financial procurement based on public contracts.

It is imperative to implement auditing standards, intensify supervision and inspection, impose sanctions on fraud and corruption and fine-tune institutions and policies to encourage supervision from society and media agencies for public investment and ODA projects, they said.

Real estate investments to reap higher profits this year

Experts said investors in the high-end residential sector would earn profits at the rate of 15 to 20 per cent this year, owing to the impending rebound in the sector.

Nguyen Khai Hoan, chairman of the Khai Hoan Land Company, said the HCM City property market would enter a new sales cycle this year after recovering from a crisis over past few years.

Investors can expect a minimum profit rate of 7 to 8 per cent and a maximum profit rate of 15 to 20 per cent, depending on each segment of the city property market, he added.

Hoan further pointed out that the minimum profit rate of 7 to 8 per cent a year would be applicable to medium and high-end apartments, due to a slight increase in prices by little less than 10 per cent for these products during the last quarter of 2014.

Meanwhile, land in the suburban areas of HCM City, such as in District 9, District 12, Nha Be and the Binh Chanh districts, was expected to report an annual profit rate of 15 to 20 per cent at the most during the next few years.

There was a big gap in the profit rate between the two segments because investors in HCM City often give priority to land as an asset, Hoan stated. Apartments offer high liquidity for a short period, but in the long term, land is a safer investment channel so the property segment's benefits increase as per the sales cycle in the sector.

The local property market this year would be brighter than last year, Hoan said, but would not be able to match the strength seen in the market eight years ago. Therefore, the expected profit rate of 15 to 20 per cent was still very attractive.

"High-end residential properties and resorts will prosper," Hoang Phuong, Associate Director and Head of Residential Sales at Savills Ha Noi, reiterated.

"In 2014, the mid and high-end residential sectors witnessed some recovery, which has been confirmed since the recent approval of the new property title."

"When foreigners are allowed to own property in Viet Nam, Savills will be able to offer the best conditions for consulting to these potential clients and connect them with investors. In 2015, the market continuously targeted property products with great quality and location, guaranteed construction progress, and professional management. Also, resorts seem promising for investment in the recovering market," Phuong said.

Huynh Phuoc Nghia, senior consulting expert at the Global Integration Business Consultants Company (GIBC), predicted that investment in the property market would see strong recovery this year because of positive factors affecting the market, including macro-economic indices, support policies, external sources and the psychology of the market.

For the macro economy, indices of inflation and interest rates for banking loans had reduced, creating a stable foundation for the local economy, while the amended law on Housing and Law on Property Trading would become effective from July and would create favourable conditions for development in the local property market in the future, Nghia said.

Foreign direct investment for the property market had surged, said Nghia, adding that the psychology of investors had improved further, reflecting a strong surge in property transactions in numerous market segments.

Additionally, instability in the financial markets due to the effects of the global market and lower interest rates had transformed the property market into the best investment channel at present, he said.

The GIBC expert expected cheaper apartments to continue attracting more customers due to lower interest rates, payments stretched over a longer period and more investments getting loans from the VND30 trillion (US$1.43 billion) credit package.

High-end apartments would also lure more investors, but renting an apartment would be better this year, he said, while land in industrial zones would see a greater likelihood for development, online newspaper vnexpress.net reported.

Since the first quarter of this year, property speculators returned to the local market because of growing speculation, said Marc Townsend, CBRE Viet Nam's managing director. During the seven years of the local property market crisis, the market lacked positive news and investors had to wait for a longer period of time to come back.

High-end apartments would be in vogue this year, but other segments in the property market would also improve, he said. If banks continue to support buyers with attractive and reasonable interest rates, the market for apartments on sale would see more positive development during the next two to three years.

Draft keeps number of gas sales agents steady

The State has maintained the number of general sales agents in the domestic gas trading system in its third draft on gas-trading regulations.

This draft is an amendment to Decree 107/2009, released by the Ministry of Trade and Industry.

In this third draft, the ministry has also added business conditions for general sales agent of gas, reported Nguoi Lao dong (Labourer) newspaper.

The conditions are similar to those mandated by existing regulations, including obtaining a business registration certificate and a warehouse with a minimum of 2,000 gas tanks in inventory. The general sales agent must have a gas distribution network, including shops selling gas tanks, stations providing gas, and a group of at least 10 other agents who meet existing regulations. They must also have a current sales agent contract with a gas dealer, effective for at least one year.

Initially, the second draft had outlined two levels for the system: dealers and sales agents. General sales agents were excluded. In theory, this measure would reduce the number of intermediaries, leading to cut the selling price and help dealers properly monitor the delivery of goods to customers.

However, in practice, some dealers in the local market have sold gas to customers via general sales agents who offer cheaper selling prices than the dealers selling directly to retail outlets.

In addition, under existing regulations, general sales agents must contribute a hefty investment to meet operating requirements, especially for meeting conditions that ensure fire safety.

Therefore, many general gas sales agents have been worried about whether they will be able to stop running the business in view of the regulations listed in the second draft.

The general sales agents, dealers, the southern branch of the association of gas traders, and the HCM City Trade and Industry Department have jointly proposed that the removal of general gas sales agen ts from the local market should be reconsidered.

Under the third draft, the gas dealers have the right to choose a distribution system that is most compatible with their business. They can distribute gas via general sales agents or sell directly to gas retail outlets, or both.

The new draft has also tightened regulations for retail sales, stipulating that sales agents or retail outlets are only permitted to buy gas from a single source - either a general sales agent or a dealer - rather than from sources as they do at present.  

Lenders say good run to continue

A majority of lenders is of the view that the business environment and their performances improved significantly last year and will continue to see positive progress this year.

The State Bank of Viet Nam (SBV) announced this in a statement on Thursday, based on its quarterly survey of business trends for credit institutions and foreign bank branches in Viet Nam.

About 89 per cent of them said their liquidity was better in 2014 and that they expect this situation to continue throughout 2015.

They also expressed optimism for their outlook on economic recovery and stability, with the gross domestic product growing higher than expected at 5.98 per cent and inflation controlled at a low level last year.

Most expect to mobilise more capital from the economy, with deposits likely to grow by approximately 4.5 per cent during the first quarter of 2015 and by about 14.35 per cent over the year.

The expected growth rates for deposits in the dong are 4.7 per cent and 15.37 per cent respectively, and for deposits in foreign currencies are 3.87 per cent and 6.53 per cent respectively.

"The capacity of credit institutions to mobilise capital witnessed more sustained and reasonable improvements in 2014, although the SBV adjusted the policy interest rates twice last year," the statement added.

Interest rates in the market fell by 1.5 to 2 per cent last year from the previous year's levels, and are likely to remain stable or decrease slightly in 2015.

However, bank deposits are expected to continue expanding as they are considered a secure and efficient investment channel in the context that the stock market is still displaying potential risks and the real-estate market is yet to see any significant recovery.

The credit institutions observed that customers' demand for banking products and services is also growing, and their demand for loans has clearly surged since the fourth quarter of 2014.

Up to 97 per cent of the lenders forecast that outstanding loans will expand at high rates in 2015, with the average lending growth for the entire banking system expected to hit 3.5 per cent in the first quarter of 2015 and 14.57 per cent at the end of the year.

Almost all credit institutions are of the view that bad debt ratios remained stable or declined during the fourth quarter of 2014 and predicted that bad loans will shrink during the first quarter of 2015. A majority of them also believe that their non-performing loans will be lower than three per cent of their total lending amounts this year.

Quang Nam thread production plant taking shape

The central province of Quang Nam recently issued an investment certificate for the construction of a US$6 million thread production plant at the Tay An Industrial Park (IP) complex in Duy Xuyen district.

The certificate was granted to Rio Quang Nam Fibre Production Co, Ltd from the Republic of Korea (RoK).

The factory will specialize in producing polyester a variety of other kinds of industrial sewing threads.

It has a design capacity of 4.440 tonnes of product per year and is scheduled to be operational by March 2015.

Speaking of the event, Kim Keun Choong, president and general director of the company, revealed that with the procurement of the investment certificate, the project has been put on the fast track to get it up and running as quickly as possible.

Vietnam strengthens farm produce quarantine

Vietnam is intensifying quarantine over its vegetables and fruits to facilitate the export of these products to foreign markets, with a focus on the US, Japan, Australia and the Republic of Korea (RoK).

According to the Plant Protection Department, negotiations to deal with technical barriers produced significant results in 2014, helping pave the way for litchi to the US, dragon fruit to New Zealand, and mango to the RoK.

The department also has asked for Australia accelerating pest risk analysis (PRA) for Vietnamese fresh mango and dragon fruit while proposing changes to several regulations imposed on Vietnamese rice to Mexico.

Most of Vietnamese exported agro-products have met importers’ requirements on plant quarantine. Last year, 90 letters of notification of violations were issued for Vietnamese partners, a reduction of 20% from 2013.

This year, the department will organise activities to popularise the application of the integrated pest management (IPM) - an effective and environmentally sensitive approach to pest management, and advanced technologies in production.

It will also intensify inspection and management over pesticides as well as working to ensure safety of vegetables and fruits.

Slow progress in SOE restructuring needs to be tackled

The restructuring of State-owned enterprises (SOEs) has seen slow progress since it was launched in 2011, leaving significant tasks to complete by the end of 2015.

According to the Steering Committee for Business Renovation and Development, 143 SOEs were equitised in 2014, well below the set target of 200 enterprises during the year.

432 SOEs were subjected to restructuring in the 2014-2015 period.

However, in Decision No. 37/2014/QD-TTg on June 18, 2014 regarding the criteria and lists for the classifications of SOEs, the Government raised the total number of SOEs requiring equitisation to 532.

Assistant Professor Dr. Tran Dinh Thien, Director of the Vietnam Institute of Economics, stated that initial restructuring was rapid, but has since slowed dramatically.

Dang Quyet Tien, Deputy Head of the Finance Ministry’s Department of Entrepreneurial Finance, believes three main reasons have contributed to the slow-down: impacts on Vietnam’s securities and capital markets from the economic crisis in 2011, out-of-date policies, and hesitation on the part of ministry leaders and business executives.

However, Finance Minister Dinh Tien Dung emphasised that an evolution in the programme implementation is needed to make a real breakthrough.

In order to speed up SOE restructuring, Assistant Professor Dr. Tran Dinh Thien maintains the necessity of raising awareness of the role of State-run businesses in Vietnam’s socialist-oriented market economy.

He also considers the most critical component towards a successful restructuring process to be enhancing the operational efficiency of the enterprises, in turn improving the quality of their products and services, increasing their competitiveness, and accelerating the economic restructuring in general.

According to the Finance Ministry, as part of efforts to generate a fair competition environment for all businesses, the ministry will expand SOE restructuring across sectors and business areas regardless of the management bodies and levels of the firms.

The ministry has also asked other ministries, localities and businesses to continue reviewing and supplementing the list of enterprises needing restructuring in accordance with the Government’s Decision No. 37/2014/QD-TTg, while developing specific measures to complete restructuring by 2015.

Law intended to optimise public investment restructuring

The revised Law on Public Investment, which took effect on January 1, 2015, is expected to provide a comprehensive legal framework for restructuring the public investment process.

Minister of Planning and Investment Bui Quang Vinh said the law is a step further of the Prime Minister’s Direction 1792/CT-TTg toward optimising public investment via a synchronous legal framework for the management of the entire public investment process, including project approvals, capital source verification, and the implementation, supervision and evaluation of projects.

An important new point in the law is the stipulation on investment planning, which should be made on a five-year basis instead of annual plans in the past. The move is in accordance with the country’s five-year socio-economic development plans, which will facilitate the allocation of investment resources and help ministries and localities make suitable investment decision, he said.

The law is intended to maximise the efficiency of public investment, especially amid limited capital sources, and to facilitate transparent use of the State and local budget, Vinh noted, admitting that other overall measures are needed in conjunction to optimise public investment.

Le Hai Mo, Deputy Director of the Institute of Strategy and Policy on Finance, underlined the strict control of the State budget and proposed a fixed cap on the State budget deficit. He stressed the design and implementation of mid-term investments must be based on national interests, and conducted with the utmost discipline.

Meanwhile, Dr. Nguyen Quang Thai from the Vietnam Economic Association said the increased engagement of the public and the National Assembly in the approval and supervision of public investment is the most effective measure, as recommended by domestic and international experts.

Public investment restructuring is part of the economic restructuring strategy stated in the Vietnamese National Assembly’s Resolution No.10/2011/QH13 on the socio-economic development plan for 2011 to 2015. The strategy also covers the reform of State-owned enterprises and the banking system.-

Can Tho focuses on developing new tourism products

The Mekong Delta city of Can Tho puts a plan afoot to develop infrastructure and diversify tourism products in a bid to draw more visitors in 2015, according to Le Minh Son, Deputy Director of the municipal Department of Culture, Sports and Tourism.

In addition to further promoting its existing destinations like Cai Rang floating market, Can Tho will launch a number of new products such as the traditional art and cultural programme of Khmer ethnic people in Pothysomrom pagoda in O Mon district, the Tan Loc fruit festival, ancient houses and Bang Lang stork park in Thot Not district, Pho Tho-Ba Bo flower village in Binh Thuy district, and fact-finding tours of farms.

A number of tourism-related events are scheduled for this year in the city, including the traditional southern cake festival and the Mekong Delta green tourism week.

Son said that the city is also making efforts to successfully host tourism cooperation activities between it and the four regional provinces of An Giang, Kien Giang, Ca Mau and Bac Lieu.

Additionally, Can Tho aims to launch several new domestic and international air routes connecting it with Khanh Hoa, Lam Dong, the Republic of Korea, Singapore and Taiwan (China), while building high-end hotels, resorts, recreational and trade centres, and a bridge linking Ninh Kieu wharf and Cai Khe islet.

Aside from preserving weekly art performances at Ninh Kieu Wharf and Tay Do Theatre, the locality is also taking measures to promote community-based tourism, and ensure safety and convenience for holidaymakers.

In 2014, the city welcomed nearly 1.37 million tourists, including more than 220,000 foreigners, generating over 1.17 trillion VND (55.5 million USD), up 9 percent and 20 percent, respectively, against the previous year.

Investors show interest in FLC Group's projects

More than 2,000 investors participated in a seminar on the potential and investment opportunities in the FLC Group in Ha Noi yesterday.

FLC Samson Residences in the FLC Samson Beach& Golf Resort in the central Thanh Hoa Province. -  Photo FLC

Nearly 1,000 investors who attended the seminar registered to buy the group's properties.

"This is the third event with a large number of attendees that I have participated in over the last 15 years," said Tran Dac Sinh, chairman of the HCM City Stock Exchange (HOSE), at the seminar.

Sinh added that during the group's listing on HOSE, they followed all regulations on information announcement and management.

Trinh Van Quyet, FLC's chairman of the management board, added that the event aimed to help investors get more accurate information about its operations and projects.   

"Investors will not only have opportunities to invest in its property projects, but also stocks," Quyet said.

He added that FLC posted an aggregate profit of VND400 billion (US$19 million) in 2014, registering a 15 per cent year-on-year increase.

This year, it plans to earn VND1 trillion ($46.9 million) in profits.

"Our projects have got committed loans of VND20 trillion ($938.9 million) till 2020 from banks. However, FLC has used its own capital," he said, adding that the group even had VND500 billion in bank deposits.

They will use bank loans this year, but for the short-term, to implement a range of projects.

Deputy General Director Dang Tat Thang said that they have implemented projects including the FLC Garden City with 1,100 apartments, 20 villas and 20 terrace houses, and FLC Complex 36 Pham Hung with 483 apartments. Both are in Ha Noi's South Tu Liem District.

In addition, the group will put on sale the Dinh Cong project in Hoang Mai District, which has 80 terraced houses and 200 apartments; 675 villas in FLC Samson Golf Links and Resort; and 155 terraced houses and 255 apartments in the FLC Complex Thanh Hoa.

Export, import tax payment time shortened to five minutes

Businesses take only five minutes now to pay export and import duties after two months a circular on tax declaration and payment was released by the Ministry of Finance, reported the General Department of Vietnam Customs.

Earlier it took 30 minutes for businesses to do export and import tax formalities.

The tax declaration of export and import goods has been simplified to reduce time and costs for both businesses and customs agencies. Businesses can make payments during and outside office hours, in off days, and via modern payment channels such as the Internet and ATM system.

Customs agencies will be updated with online tax payment transactions every 15 minutes instead of an hour as before.

According to the General Department of Vietnam Customs, a total of VND10,499 billion (US$492 million) taxes were paid through commercial banks for the last 11 months with more than 68,100 transactions from 63,200 tax returns.

Yearend demand warms up construction material market

The construction material market has gradually warmed up after a long-lasting gloominess as residents have rushed to build or repair houses ahead of the lunar New Year festival.

Construction material demand has considerably increased since the fourth quarter last year and shop owners reported a year on year increase of 20-30 percent in purchasing power.

Steel and cement have been most consumed with slightly hiked prices. Steel price has edged up VND300,000 a ton since last December after the Southern Steel Corporation lifted their prices.

The prices of cement, bricks and tiles have also gone up by 5-10 percent in recent months over the previous months. Sand and gravel prices have also soared up a little.

Owner of a construction material shop in Highway 13, Ho Chi Minh City said that the number of customers increased over normal in the last two months, most of them had been building or repairing their houses.

In some areas such as Thanh Xuan ward, District 12 tens of houses has been built within one week.

Construction Material Department under the Ministry of Construction said that construction material consumption has seen a 10 percent year on year increase.

Ho Chi Minh City Construction Department reported good consumption of some construction materials, for instance cement sales have soared by 12 percent. This shows a positive sign of the construction market after three consecutive years of price and sales reduction.

Economic experts forecast that the construction material market will gradually heat up because social housing, apartment and residential area projects have been sped up in big cities nationwide.

In HCMC a lot of social housing projects have been carried out to solve difficulties for the real estate market, stimulate construction consumption and meet residents’ demand of low cost apartments.

However the General Statistics Office warned that the construction market will face with a lot of difficulties and challenges this year as real estate market has recovered slowly.

Construction businesses have been unable to tackle debts left from the previous years. Although interest rates have been lowered, small and medium businesses have still found it difficult to access loans.

In addition construction materials from neighboring nations will continue to overflow domestic market due to tax exemption. Statistics by the Steel Association show that the volume of steel imported with 0 percent tariff rate to Vietnam has risen to 43,000 tons so far.

Tile segment has faced strong competition from Chinese products with beautiful designs and low costs. Chinese bathroom accessories such as tubs, taps, douches, wash basins and plastic doors have been rather popular in the market with the price accounting for only 60-70 percent of domestic prices of the same products.

Wage hikes in Hanoi signal recovery

Higher monthly wages at many companies in Hanoi, especially in the FDI sector, signal continuing economic recovery in the capital.

The Hanoi Department of Labour, Invalids and Social Affairs, which surveyed some 570 enterprises, found highest monthly wage at FDI companies of VND60m (USD2,800), with the average wage in 2014 at VND4.4m a month, an increase by 1.0 percent on a year earlier.

State-owned corporations were in second place with highest monthly wage of VND37m, with an average wage of VND4.7m.

In third place, was the private sector with a highest monthly wage of VND35m and an average monthly wage of VND4.3m, up 5.1 on a year earlier.

Lastly, state-owned one-member limited liability companies had a highest monthly wage of VND27m and an average monthly wage of VND4.4m, up 1.6 percent.

Pham Van Thanh, manger of the Department of Labour, Employment Policy under the city's Department of Labour, Invalids and Social Affairs, said the statistics were drawn from enterprise reports. The monthly wages at some enterprises, which did not provide reports, could be even higher and more optimistic.

The reported numbers also showed positive changes in Hanoi in the past year, despite some outstanding difficulties such as unpaid wages.

"The restructuring process has helped enterprises overcome challenges," Thanh said. "Overall, average wages in 2014 increased by 2.5 percent compared with 2013, so it looks like employees' Tet bonuses should also increase by 5.5 percent."

Farmers hit by cut in milk purchases by dairies

Farmers are facing a hard time as milk companies in Vietnam set quotas on the amount of milk they will buy, creating a market glut.

Many households in Tu Tra and Da Ron communes in Lam Dong Province resorted to pouring away fresh milk outside Dat Lat Milk Joint Stock Company (Dalat Milk) to oppose its new purchasing policy.

Farmers say Dalat Milk will only buy the equivalent of 16kg of milk per cow, while the daily average output per cow is 20-25 kg a day. This has caused a milk glut and farmers are unable to find new markets.

In Hanoi, farmers in Phu Dong Commune, Gia Lam District denounced IDP Company for a sudden and dramatic cut in its purchases of milk.

Tong Xuan Trinh, Deputy the head of the Animal Husbandry Department under the Ministry of Agriculture and Rural Development, said that local authorities had intervened and IDP agreed to buy more fresh milk from farmers.

Farmers say companies were not complying with contracts.

But Ngo Minh Hai, general director of Dalat Milk, said milk output has expanded beyond the company’s processing demand, so purchases have had to be restricted.

Hai said restrictions were aimed at curbing the practice of farmers exploiting contracts by buying up milk from other producers and reselling it to the company at a higher price.

However, one expert said milk output in 2014 was almost unchanged from 2013, and  companies were cutting purchases of fresh milk so they can import cheaper powdered milk from foreign countries for reprocessing into liquid milk products.

Trinh said milk prices on world markets have dropped 60-70 percent, and many companies were importing foreign powdered milk to remain competitive.

Vietnam spends some USD1 billion to import milk a year. The figure was USD1.09 billion in 2014.

The country has a goal to reach local fresh milk output of one million tonnes by 2020, or 50 percent of the local demand.

Trinh said that it is only fair companies decide how and where to source milk for their production. Management companies are only responsible for checking product quality and that it meets stated specifications.

He said the government should revise dairy development policy to encourage companies to join hands with farmers for produce fresh milk or allow farmers to engage in self-production.

Farmers are reluctant to bend existing contracts in the interests of maintaining long-term business relationships.

The Ministry of Agriculture and Rural Development recently ordered local departments to ensure dairy companies honour contracts.

Japanese firm seeks to build clean vegetable plant in Ha Nam

Japan’s Showa Denko Group has worked in conjunction with authorities from the northern province of Ha Nam to design a plan to develop a clean vegetable production plant using LED lighting technology.

During a working session with leaders of the provincial People’s Committee on January 19, the firm’s General Director, Daiken Murakami, briefed them on the new technology, stressing its necessity for current agricultural production as outdoor cultivation methods are experiencing negative impacts from climate change.

The modern method can ensure plants receive the necessary growth amenities, ultimately helping conserve water, reducing crop waste volume by 40 percent, and contributing to lower production costs.

Daiken Murakami said his firm has built 21 plants applying the technology in Japan and plans to expand the model to other countries around the world.

The group is eager to cooperate with Vietnamese clean vegetable producers, he added.

Secretary of the provincial Party Committee Mai Tien Dung introduced a number of high-quality clean vegetable growing models in the province, suggesting cooperation between Showa Denko and Ha Nam’s An Phu Hung Company to carry out the model in the near future.

The An Phu Hung Company has previously partnered with Japan’s H.B.C International to successfully implement a Japanese technology organic vegetable-planting model in Ha Nam.

Vietnam, Germany step up agriculture cooperation

Vietnam is looking to Germany for supporting its exports to the European Union, particularly seafood, rice, tea, coffee, and fruits, Vietnamese Minister of Agriculture and Rural Development Cao Duc Phat told his host, Minister of Food and Agriculture Christian Schmidt, in Berlin on January 19.

Minister Phat expressed his appreciation for Germany’s support to Vietnam over the past years, saying that he hopes the two countries continue to strengthen their bilateral ties, especially in agriculture.

He also hopes to intensify cooperation in climate change adaptation, ecosystem protection, and forestry development, he stated, suggesting Germany facilitate training for Vietnamese agricultural officials and farmers.

For his part, Minister Schmidt spoke highly of recent achievements in Vietnam and pledged to continue promoting bilateral relations, particularly in agro-forestry. He plans to discuss the signing of specific cooperative documents with relevant German offices and the corresponding Vietnamese partners.

Minister Schmidt also committed to visiting Vietnam to continue discussions on further cooperative efforts.

Talking to Vietnam News Agency correspondents in Berlin, Minister Phat hailed the importance of promoting bilateral trade, as Germany is not only a big importer of Vietnamese goods, but also a central EU market. Vietnam has much to learn from Germany’s technologies, especially those involving product processing and preservation, he added.

Earlier, he visited Vietnam’s Dong Xuan Trade Centre in Berlin to meet with Vietnamese import businesses there and discuss cooperation possibilities with export companies at home.

The import enterprises suggested improving product quality and design as well as standardising processing and packing steps to facilitate increased exports.

Hanoi American International Hospital idle 17 years

17 years after its investment certificate was issued, Hanoi American International Hospital project is still a desolate construction area in Hanoi’s Cau Giay district.

Overlooking from the other side of the Nghia Do Park, Hanoi American International Hospital project, which is invested in by US-based Keystone Global Group, looks furbished with its front covered by glass windows. However, its backyard is still a construction area with dunes of sand and rock as well as rusting construction equipment.

The about 3,000-square-metre area is now a nutritious land for wild grass to grow. The storage area also seems to have been untouched for a long time.

A guard of a nearby coffee shop told VIR that, within two months, when he started guarding cars parked in front of the hospital, he has not seen anyone working on the project.

As for a middle-aged gardener inside the hospital’s area, there are only three people working here with a monthly wage of VND3 million ($140) each. “We have asked for a raise many times but they rejected. They said that we can quit if we don’t find the pay satisfying,” he told VIR.

The gardener added that the investor has already spent over VND1 trillion ($47 million) on the project and is now selling it. He also said that there was a foreign company offering to buy the project for VND800 billion ($37.5 million) but the investor denied. “I think this project will continue being idle until it is sold,” he believed.

VIR contacted Keystone via mobile number and email available on www.hospitaldirectoryasia.com, but there was no reply.

Keystone’s head office is at 20 Doc Ngu street, Hanoi. Through observation, the house is still lighted and there are people coming in and out. However, Huong, the owner of the house, which has land area of 80 metres square, told VIR through mobile phone that it is now open for lease with the price of VND15-25 million ($700-1170) per floor per month.

Hanoi American International Hospital, with the registered investment capital at $50 million, was the second healthcare foreign invested hospital in Hanoi, following the French Hospital of Hanoi. Being licensed in 1997, the hospital was planned to have 300 international quality beds and a modern helicopter landing pad.

Due to slow land clearance, the project started its construction in 2006 and finished its raw building in 2011, since when the project has been left desolate.

In 2011, Hanoi American International Hospital said on its website that the hospital would officially open in November that year and boasted that it would welcome the US President Barack Obama on the opening day.

Nobody knows whether the project is going to be continued.

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