Enough food for Tet celebrations

“There’s no worry about the lack of meat during and after the Lunar New Year festival (Tet),” said Nguyen Thanh Son, Deputy Head of the Animal Husbandry Department under the Ministry of Agriculture and Rural Development (MARD).

He confirmed that some 270,000 tonnes of meat have been supplied to the domestic market in January, up 10 percent compared to other months.

To ensure adequate supply, the Animal Husbandry Department has allowed businesses to import about 115,000 tonnes of meat from neighbouring countries.

At present, the price of pork is VND48,000-52,000 per kilogram while white-feather chicken hovers around VND32,000-33,000 per kilogram.

PetroVN divests from tallest tower project

The National Oil and Gas Group (PetroVietnam) has divested from the construction of Vietnam’s tallest skyscraper, PVN Tower, in Hanoi, said its top leader at a recent press briefing.

The national petroleum conglomerate has reported to the government about the divestment, stressing that it is following the government’s directive in withdrawing state capitals from non-core sectors, said PetroVietnam chairman Phung Dinh Thuc.

The project, located on a 6.5 hectare site in Tu Liem District, would be handed over to a new investor under the management of Hanoi government, he added, without going into detail.

A source from PetroVietnam’s construction arm, PetroVietnam Construction Joint Stock Corp (PVC), told Vnexpress that it is the owner of the $600 million project, of which its contribution accounts for 15-20 percent of PVN Tower’s total investment.

According to the source, PVC will mobilize capital from the private sector.

The tower project has been projected to start this year, but it may be delayed due to current situation of the real estate market which has already been suffering a downturn.

PVC will recoup the investment capital 15-20 years after the completion of the building.

The project was shortened to 79 floors from 120 floors as seen in the original blueprint in March 2011 after the National Assembly did not agree to let PVN use its VND3.5 trillion profits in 2010 as added working capital for the following year. Instead, the sum was to be transferred to the state budget.

Some legislators showed their concerns over the fact that PetroVietnam had overstretched its investments in non-core sectors, as the PVN Tower is an example.

The building, consisting of A-grade offices, a 6-star hotel, commercial complex and high-grade apartment, was designed to withstand earthquake measured up to the 6th level on the Richter’s scale.

It has three designs with awards worth $50,000, $30,000 and $20,000 for top 3 designers including the US-based Pelli Clarke Pelli Architects, the Australian Fender Katsalidis Architects, and the Spain-based PCIC- Codinachs- Samoo joint venture.

It will be the tallest building once finished - around 500 meters tall, followed by the 345-meter Keangnam Landmark tower and 362-meter VietinBank Tower.

PetroVietnam remains No.1 in the top 10 Vietnamese largest companies in the VNR500 - the 500 Vietnamese largest enterprises in 2011 with an estimated revenue of VND672 trillion, accounting for over 50 percent compared to VND1.16 trillion worth of total revenues of state-owned groups in 2011.

It will have to focus on its 5 core businesses, including exploration and exploitation of oil and gas, petrochemical, industrial gas, electrical and petroleum engineering services, according to its restructure scheme that has been submitted to the government.

So as to achieve the goal, it will have to divest from all non-core sectors by 2015.

Broker fined for disclosure violation

The State Securities Commission earlier this week fined Bao Viet Securities Co (BVS) VND40 million (US$1,900) for failing to make a timely report of its aborted purchase of 200,000 shares in Viet Nam General Export-Import Co No 1 (TH1). BVS registered to buy the shares between July to September of last year but never completed the transaction.

Kinh Do sells stake to Japan partner

Food processor Kinh Do Corporation (KDC) has sold 14 million shares, representing a 10-per-cent stake, to Japanese strategic partner Ezaki Glico. The price-per-share of the deal was not released but was said to be higher than Kinh Do's current trading price on the market. KDC closed up 1.6 per cent yesterday to VND26,000 per share. KDC has estimated its 2011 earnings at VND4.2 trillion (US$200 million) and its profit for the year at VND500 billion ($23.8 million).

VNDirect posts huge loss

VNDirect Securities Co (VND) has posted a loss of VND201.7 billion (US$9.6 million) for 2011, reversing its profit of VND105 billion ($5 million) posted in 2010. In the fourth quarter of last year alone, the firm's loss totalled nearly VND72.3 billion ($3.4 million). VND's earnings reached only VND277 billion ($13.2 million) last year, a decline of 41 per cent compared to 2010, with revenues from self-trading operations plunging by 97 per cent to a mere VND4.4 billion ($209,500).

Vinalines set for restructuring

Prime Minister Nguyen Tan Dung has issued instructions for the restructuring subsidiaries of Viet Nam National Shipping Lines Corporation (Vinalines) during 2011-15.

Following the restructuring, Vinalines would hold over 50 per cent of charter capital in five companies, including Khuyen Luong Port Co Ltd, Nam Can Port Co Ltd, Bien Dong Shipping Co, Vinalines Hai Phong Maritime Services Co and Vinalines Nha Trang Maritime Co.

Seafood processors see shortage

The Viet Nam Association of Seafood Exporters and Processors (VASEP) said a serious shortage of domestic fish would affect exports in the first half of the year.

Accordingly, Viet Nam's cuttlefish and octopus exports to Japan are forecast to experience a rise in the second half of this year.

However, the association has advised fisheries processors to take the initiative and import seafood materials until this happens.

Viet Nam is one of the three largest cuttlefish and octopus exporters to Japan, especially fresh and frozen cuttlefish and processed octopus.

However, it is facing fierce competition from South Korea and China. Last year, the country's cuttlefish and octopus export turnover reached US$520 million or 31.3 per cent year-on-year increase.

Third market for Dong Nai

Lotte Mart Viet Nam, an affiliate of South Korean Lotte Group, has received an investment licence from the Dong Nai provincial People's Committee to build its third supermarket in the province's Amata Commercial Complex.

Capitalised at US$40 million, Lotte Mart Bien Hoa will cover an area of 21,000sq.m.-

Ocean Bank expands e-services

The Ocean Joint-stock Commercial Bank (OceanBank) has officially co-operated with Ngan Luong, VnPay, Smartlink and OnePay paygates to launch some new e-banking services starting from this month.

Under the agreements, four services will be provided: Easy Transfer (nationwide inter-banking transfers with immediate effect), Easy Billing (invoice payment via paygates), Easy Top-up (pre-paid mobile, game on-line account top-up), and Easy Payment (on-line shopping, air ticket payment).

Hyundai awards power contract

A subsidiary of Foster Wheeler's Global Power Group has been awarded a contract by Hyundai Engineering and Construction to design and supply 4x250 MWe circulating fluidised-bed steam generators for the Mong Duong 1 Thermal Power Plant in Quang Ninh Province.

The generators will be designed to burn Viet Nam's anthracite coal and to meet environmental requirements.

They are expected to be in operation in the second quarter of 2015.

Bad weather hits pepper yields
 
The export pepper yield this year was forecast to fall due to unfavourable weather conditions, according to the Ministry of Agriculture and Rural Development.

"The total pepper exported this year may reach 86,000 tonnes, worth nearly US$619 million. These figures would be down by 30 per cent in volume and 16 per cent in value," the ministry said.

Head of the administrative office under the Viet Nam Pepper Association, Tran Duc Tung said bad weather had strongly affected crops, and many older plants had died.

Since 2001, Viet Nam has been the largest pepper producer and exporter in the world.

The ministry reported that in 2011, the country exported 125,000 tonnes of pepper, valued at $736 million. Although the year-on-year volume increased by only 7.2 per cent, the value surged by 74.6 per cent.

Demand for pepper has risen year-on-year in most markets.

Demand from Spain increased the most, at 270 per cent, earning the country's pepper industry $25.6 million in 2011.

Spain was followed by Singapore with growth of 231.4 per cent, worth more than $21 million. Other markets experiencing significant growth were Egypt at 212 per cent, the US at 158 per cent and India at 101 per cent.

Last year, the price of pepper climbed sharply in both the domestic and export markets, thanks to high demand and low supply.

The price of black pepper soared to a record high of VND161 million ($7,600) per tonne in September 2011, up by 116 per cent against the same period in 2010. The price of white pepper also soared by 99 per cent reaching VND197.5 million ($9,300) per tonne.

On average, the price of pepper last year was roughly $5,870 per tonne, up by 66.3 per cent over 2010.

However, since the beginning of this year the price has fallen by $800 per tonne.

"The domestic price is falling in line with the world market," the ministry said.

The ministry estimated that the price would continue to decline due to low demand.

Profits fail to bloom for flower farmers

Farmers in the Cuu Long (Mekong) Delta have managed a good supply of flower and ornamental trees for the upcoming Tet (Lunar New Year) festival despite the long and heavy flooding the region suffered last year.
But as it happens often, their good work does not guarantee them a good price.

The delta's well-known flower villages of Cho Lach and Sa Dec has been a beehive of activity the last fortnight with people working hard to decorate, trim and pack the flowers, flowering plants and ornamental trees.

The warm weather of late has helped the farmers. "Flower buds on my apricot trees have grown well thanks to warm weather during December [last year]. I am having a very good crop," said Nguyen Van Lai, a farmer in Cho Lach District, Tien Giang Province.

Since the first days of the year, Lai began pruning his trees and removing the aluminium strings that he had used to shape the trees. Lai has 1,000 pots of apricot trees and he hope to sell each at VND1 million (US$49.9) or more in HCM City, Binh Duong and Ba Ria – Vung Tau provinces.

Meanwhile, farmer Nguyen Nhat Minh has just sold 105 apricot pots to a buyer. He said some buyers agreed to buy all the output of a farm in case they have grown well and have a lot of buds that will bloom in time for the festival.

The price of apricot pots depends on age of the tree, its shape and number of buds that are set to bloom during the festival days.

Most delta farmers are saying they are not profiting as much as they did the previous Tet because of price hikes in fertiliser, transportation fees and site charges for exhibiting their products for selling.

Minh said the selling prices are determined by buyers and dealers. He said the buyer that purchased his plants would get double the price because they sell them in HCM City.

A dealer who did not want to be named said prices cannot be higher than last year because consumption demand is lower this year.

Kumquat farmers have also had a good crop this year. Since the coming lunar year is the year of dragon, some of them are creating ornamental kumquat trees in shape of dragon, apart from the traditional shape of a pine tree.

Le Van Tri, a farmer who has 1,000 kumquat trees of various sizes in Sa Dec Town, said he believed that the kumquat fruits on his trees would turn yellow from green in time for Tet.

He and other seven farmers working for him are busy pruning and shaping the kumquat saplings.

Tri said he does not know much about the final price of his trees. He sells the big ones in his collection for VND2-3 million each.

Other kumquat farmers also said price hikes in many necessary items meant less profit this season.

While ornamental tree growers said they are enjoying a good crop but less profit, farmers growing flowers like chrysanthemum, marigold, and dahlia are afraid they will make a loss from this crop.

Tran Van Tho, a farmer growing these flowers in Sa Dec Town said the floods had affected his little plants, causing many of them to die, have stunted growth or less buds.

He said he only hoped revenues from selling the plants would recover his investment.

Similar hopes were expressed by farmer Nguyen Thi Le in Cho Lach District who has 15,000 dahlia pots.

Experts said that in case the plants were well taken care during the flooding period, they would have a large number of blossoms, as Viet Nam News saw at the farm of Truong Van Dung in Sa Dec Town.

According to Bui Thanh Liem, head of the agriculture and rural development division in Cho Lach District, the district has 400ha devoted to growing flowers.

Auto firms spin out

The government’s strong measures to restrict personal car usage have bothered industry insiders.

Japan-backed Nissan Vietnam Company Limited general director Choo Hong Chow said if the Ministry of Transport’s proposal to impose road travel fees on motorbike and especially car users got the government’s green-light after registration fees and number plates hiked sharply from January 1, 2012 in Hanoi and Ho Chi Minh City would significantly burden consumers.

“Fee impositions are to generate income sources for infrastructure development. However, experiences show that this is often the next step after good infrastructure is in place,” he said.

A representative from another car firm said they faced difficulties in setting 2012’s development objectives on the back of recent policy changes which aims at putting limits to personal car usage.

“Policy changes relevant to car industry are often unpredictable to us,” said the representative.

Sales director Do Xuan Quan at Nissan Ha Dong car dealer said the recent move had slowed down consumption in Hanoi.

“In some past years, banks often resorted to our car dealers to help them increase lending. Things are now reversed,” said Quan, adding that current lending rates of around 20 per cent for car purchases remain comparatively high against consumers’ tight budgets.

To partly ease consumer burdens some car firms have rolled out 5 per cent registration fee subsidy packages applicable in January, 2012. Besides, corporate customers having branches in different localities were suggested ways to lower registration fees.

Members of Vietnam Automobile Manufacturers’ Association sold out 110,938 cars in 2011 which were just 1 per cent lower than in 2010. Despite a slight decrease, passenger cars saw a phenomenal 22.1 per cent hike in sales figure reaching 40,858 units. Cross-over utility vehicles and multi-purpose utility vehicles plunged 6 per cent with 22,956 units being sold out.

PetroVietnam unveils geophysical survey branch

PetroVietnam Technical Services Corporation (PTSC) unveiled a new company branch on June 16 which specialises in geophysical exploration services for the oil and gas industry.

The new branch, a 51 per cent and 49 per cent joint venture between PTSC and CGG Veritas (CGGV), provides 2D&3D (two dimensional and three dimensional) seismic acquisition services.

The joint venture will operate for 20 years, according to PTSC, a subsidiary of Vietnam 's leading oil and gas company PetroVietnam.

The company said the joint venture would help it to provide full technical services packages for petroleum exploration and development in Vietnam as well as in the regional market.

PTSC, which owns VND17 trillion in total assets and employs 9,000 personnel nation-wide, provides diversified technical services for the oil and gas industry inside and outside Vietnam .

Headquartered in Paris , the 79 year old CGGV boasts 50 years of seismic survey services in Vietnam.

Cooking gas traders fined for unregistered pricing

Inspectors of the HCMC Department of Finance have imposed an administrative fine of VND20 million on a cooking gas trading company over violations of price registration rules.

Nguyen Thanh Binh, chief inspector of the department, told the Daily that a decision on the fine was issued on Tuesday and law enforcement officers would work with the violator, Petrolimex Saigon Gas Company, over the penalty within the next few days.

According to Binh, the enterprise has sold gas at prices not yet approved by authorities. Local enterprises are required to register any revisions of gas sale prices with the finance departments under Circular 122/2010/TT-BTC issued by the Ministry of Finance.

“Gas traders on January 5 increased sale prices by VND8,000 per cylinder as import tax rose from 2% to 5%. The new price is fine but the enterprises failed to do as regulated,” Binh explained.

The department will fine Shell Gas Vietnam and Total Gas for the same violation. “We are waiting for district inspectors’ reports, so we cannot say how much fines are. If the value of gas involved in violations is over VND100 million, the maximum fine will be VND20 million,” Binh added.

Law enforcement agencies earlier inspected five gas companies after they raised gas retail prices by VND8,000 per 12-kilo cylinder on January 5. Just one company followed the price registration rule.

The department since early this month has boosted inspections into price regulation implementation in the Tet season at traditional markets, supermarkets, coach stations and entertainment parks, especially those selling necessities.
 
HP picks Viettel as new distributor

Viettel Distribution on Tuesday became an official distributor of Hewlett Packard Vietnam to supply its IT products such as servers, data storage devices and network equipment.

HP Vietnam also has four other distributors, FPT, CMC, Ingram Micro and AFNET.

Viettel Distribution has already been distributing HP products like personal computers, notebooks and desktops since 2010.

HP will support Viettel in setting up a retail and after-sales services network in line with HP standards.

When picking Viettel as the next distributor for its servers, storage devices and network equipment, HP wants to expand its operations in the Vietnamese market.
 
PVN insists on power projects

Vietnam Oil and Gas Group, or PVN, will continue to invest in power projects in anticipation of future profits even though Vietnam Electricity (EVN) had owed it a combined VND10 trillion by October last year.

PVN chairman Phung Dinh Thuc told the local media early this week that investment in power generation is one of the five business fields of the group and this will continue in the future.

Apart from the thermal power projects that the group has been developing, PVN is seeking to get involved in five coal-fired power projects which EVN returned to the Government. They are Vung Ang 1, Thai Binh 2, Long Phu 1, Song Hau 1 and Quang Trach 1.

These projects are under the sixth and seventh national master power development plans, with each having a capacity of 1,200 megawatts and requiring US$1.5 billion.

The first two projects, Vung Ang 1 and Thai Binh 2, have been approved by the Government to run on domestic coal, while PVN is seeking suppliers of non-price-subsidized coal.

Thuc said the cost estimate of coal supply for thermal power plants following market prices was currently a concern of PVN given the slow power price hikes and the VND10-trillion debt of EVN.

PVN has stressed a power price that ensures a profit of 10% a year for each project, said Thuc, but the Government now wants stable yet low prices, so PVN must wait for the future when power prices are adjusted up.
 
Pham Gia opens new car showroom

Pham Gia Auto Company on Monday opened a new showroom at 216A Nguyen Thai Binh Street in HCMC’s Tan Binh District to distribute luxury cars imported from the U.S. like Chrysler, Jeep and Dodge.

This is the second showroom Pham Gia has commissioned after the one inaugurated last year in Binh Chanh District. The firm is the official distributor of the U.S. carmaker Chrysler. Pham Gia plans to open the third facility in Hanoi some time this year.

Car models to be distributed at the newly opened showroom include Chrysler 300 Limited priced at VND1.9 billion, the five-seat Dodge Journey 2.7L at VND1.6 billion.
 
Rice crop in north faces water shortage

The Central Meteorology and Hydrology Forecasting Center has warned a water shortage will likely hit the winter-spring rice crop 2011-2012 in northern Vietnam.

This is the second successive winter-spring rice crop in the country’s northern region that has had no enough water. The Cultivation Department under the Ministry of Agriculture and Rural Development said northern provinces this year would be planting about 670,000 hectares of rice, one-fifth of the country’s total winter-spring cultivation area.

The department’s head, Nguyen Tri Ngoc, said that before sowing the winter-spring crop, local farmers had been told about a possible water shortage. However, they have almost completed the sowing, Ngoc said, adding his department had worked with relevant agencies to map out plans to ensure irrigation.

According to the department, Hoa Binh, Thac Ba and Tuyen Quang hydropower reservoirs will release some 2.8 billion cubic meters of water in two phases until February 9 to help rice growers have enough water to begin the winter-spring crop in a timely manner.
 
Pre-Tet rice market frozen on low demand

Few fresh export contracts and falling pre-Tet activity of trading companies are among the main reasons behind the steady local rice price drop over the past few days.

While rice in Mekong Delta provinces surged sharply in the winter-spring and summer-autumn crops last year, the price has kept plummeting since the autumn-winter crop with a drop of around VND2,500 per kilo compared to the earlier record high.

The price fall has resulted from lack of export contracts as rice is mainly produced for export, said Duong Van Men, a rice trader in Dong Thap Province.

According to the Vietnam Food Association (VFA), Vietnam has signed contracts to export only 1.1 million tons so far this year, much lower than the same period last year, while delivery lasts until August. Such difficulties have pushed down the local price.

Nguyen Thanh Hon, a rice trader in Tien Giang Province, said a kilo of the fresh low-grade rice IR 50404 was priced at VND4,400-4,500, down by VND200-300 from January 3, while that of the dried IR 50404 rice dropped by VND300-400 to VND5,500-5,600. If compared to the record high, the price has dipped by VND2,400-2,500 per kilo.

The price of higher-grade long-grain paddy has suffered a slighter drop of VND150-200 versus early this year. In particular, dried and fresh rice is around VND5,800-5,900 and VND4,800-5,200 respectively.

The material rice price at wholesale markets in Tien Giang Province has also gone down significantly, with VND7,400-7,450 for IR 50404 unhusked rice and VND7,500-7,550 for long grains, dropping by VND200-300 from January 3.

IR 50404, 5% broken and 15% broken rice were VND8,200-8,300, VND9,500-9,600 and VND9,100-9,200 a kilo respectively.

There is a possibility that the local price will continue to decline to VND4,000 for a kilo of fresh IR 50404 rice as the lunar New Year holiday this year is earlier than in previous years while supply in some localities is increasing, according to traders.

Many traders in Ba Dac wholesales market in Tien Giang Province have decided to stop purchasing in preparation for Tet as the rice market is too quiet, according to a firm in the market.

Nguyen Thanh Hon said he had also stopped buying rice in two to three weeks after a purchase last Friday.

The local rice market has got frozen while traders and firms have suspended their business operations in preparation for Tet.

Farmer Nguyen Van Ben in Soc Trang Province said that he had to dry and stock rice as grains were harvested when traders stopped purchasing.

Another farmer in the province also frets over the coming crop if rice still stays low in price.
 
Provinces strengthen food safety

Relevant authorities of HCMC and five provinces – Dong Nai, Binh Duong, Long An, Tien Giang and Ba Ria-Vung Tau have signed a cooperation agreement on food safety and hygiene at farms.

HCMC now consumes nearly 9,000 pigs and 120,000 chickens a day. The five provinces sell huge volumes of cattle and poultry meat in the city, with pork accounting for 83.2%, chicken for 89.8% and poultry eggs for 59.7%.

Truong Thi Kim Chau, deputy head of the HCMC Animal Health Bureau, said the six-party cooperation would help improve food safety checks, especially during the upcoming Lunar New Year holidays in which food demand runs very high.

This is part of a series of activities under the Government’s pilot plan to develop a safe food store chain in HCMC.

On the occasion, Saigon Co.op, the owner of the Co.opMart store chain, signed trading deals with representatives of a number of food suppliers that will join the safe food chain like Vissan, Sagrifood, Binh Minh and Vinh Thanh Dat.
 
Demand for kumquat and apricot bonsais dampened this Tet

Due to the bad economic climate, many of the most famous markets to buy Tet flowers and trees in the southern province of Can Tho have seen less demand this year.

Ninh Kieu Flower Market has an abundant supply of the trees, and local people have started to populate the markets for the Tet season. According to Dtinews reporters, however, the market lacks large–sized trees this year.

Yellow apricots, a very popular Tet tree in the south, are particularly rare. Because of the weather, most of them have bloomed early.

According to one merchant, yellow apricots are quite unpredictable when it comes to blossoming, being susceptible to abnormal weather.

Prices have remained largely the same as last year because of the scarcity of large trees. The average price of a yellow apricot tree ranges from VND200,000 to millions dong, depending on their size and shape.

This season, most customers tend to choose trees priced below VND1 million. In turn, many sellers have been forced to slash their prices.

Kumquat trees, on the other hand, are bigger and have a wide range of shapes and sizes. Some of the most popular shapes are the pyramid, dragon and spiral.

The dragon-shaped kumquat trees are the most valuable this year because 2012 is the year of the dragon.

But, according to one seller, most of the people in the market are just there to look around, saying that nobody has bought the trees shaped as a dragon because of the high price.

At another flower market on Hoang Van Thu Street, many boats carrying ornamental trees on the nearby Cai Khe River contained numerous unsold trees that were left because of a lack of demand.

Another seller said that he only expects to sell 50% or 60% of his inventory, which would still bring him some profit.

The demand for ornamental plants will be highest from December 26 to 28, on the lunar Calendar.
 
Low-income housing suffers from sluggish construction pace

Projects to build houses for low-income people have just met only 1% of the set target, admitted the Ministry of Construction in a recent report.

The ministry explained that the country has started 42 low-income housing projects worth VND4.5 trillion (USD213.91 million) with an expectation to house around 73,200 people.

However, up to now, only nearly 2,000 apartments have been completed, serving around 8,000 people, just 1% of the plan.

Projects to build accommodations for students are also carried out at snail’s pace. Currently, only 151 house blocks have been put in use, benefiting 125,000 students.

An additional 100 house blocks are expected to be completed by the end of 2012 in order to serve around 205,000 students, the ministry noted.

The same situation is recorded among housing projects for workers. A total of 27 such projects worth VND3.015 trillion (USD143.32 million) have been carried out with the aim of serving around 139,800 workers. However, to date, only nine projects have been completed, meeting the housing demand of just 27,800 workers.

Projects to build houses for the poor seem dramatically better. By the end of 2011, cities and provinces across the country have built houses for around 470,000 poor households, meeting 95% of the set target.