Vietnam to complete Mekong Delta rice storage system soon

Prime Minister Nguyen Tan Dung has requested the Hau Giang provincial People’s Committee to establish a rice storage system as soon as possible by eliminating any current obstacles.

He told the local authorities to instruct relevant agencies to reach an agreement with the Vietnam Southern Food Corporation (Vinafood 2) on necessary measures, especially in site clearance for an early completion of the storage system as planned.

The PM had previously asked Vinafood 2 to scrutinize the master plan for this project to ensure that it would be completed before June 31, 2012.

Chinese in US$300 million power deal

The Export-Import Bank of China on December 17 signed an agreement with the Vietnamese Ministry of Finance to provide US$300 million in financing for the Vinh Tan Power Plant No 2 in central Binh Thuan province.

Electricity of Viet Nam (EVN) has sunk about VND23.4 trillion (US$1.1 billion) into the coal-fired plant which has a capacity of 1,200MW and an area of 397ha.

The EVN started construction of its second plant in Vinh Tan in August, and will use the new funding to continue. The first of the plant's two turbines is expected to be operational in December 2013 with the second to follow in June 2014. At the ground-breaking ceremony in August, Deputy Prime Minister Hoang Trung Hai said the Vinh Tan No2 project would go a long way to easing the country's power shortage. It would also supply industrial and economic zones in the province. Coal-fired plants would help minimise the national electricity grid's dependence on hydroelectric power plants.

Power plants covered in the master plan will increase capacity to 50,000MW during 2006-2015.

Vietnam-UK trade, investment ties expected to boom

The year 2011 will see a boom in trade and investment cooperation activities between Vietnam and the UK, the trade counselor of the Vietnamese Embassy in the UK has said.

An The Dung has a reason to make the remark as two-way trade turnover between the two countries is estimated to record an impressive growth rate of 15 percent this year, particularly in the context of unstable economic situation in many other countries.

Dung said the bilateral ties between Vietnam and the UK have been developing rapidly over recent years, adding the signing of a joint statement of promoting the two countries’ relationship as strategic partnership in September this year is a boost to their cooperation comprehensively, particularly in some key areas, including trade and investment.

According to Dung, two-way trade turnover in the first 10 months of 2010 increased by 18.6 percent to £1.3 billion, exceeding the whole last year’s record of £1.26 billion.

In the first ten months of 2010, the UK imported from Vietnam £1.03 billion worth of commodities and exported to the Asian country £235.8 million, year-on-year increases of 15 percent and 37.7 percent, respectively. In the two remaining months, the two-way trade turnover is expected to add £200 million more to bring the year’s figure to £1.5 billion (US$2.4 billion).

The EU country imports from Vietnam footwear, garment and furniture with high values. In addition, it has a high demand for Vietnamese farming products such as coffee and cashew nut, seafood, plastic and rubber products.

By the end of 2010, almost all of Vietnam’s export staples, except footwear, have recorded high growth rates in the UK market: cashew nuts with 38 percent, plastic products with 24.6 percent, furniture and timber products with 19.3 percent, and garment with 5.4 percent.

The UK sells to Vietnam its electric equipment and generators, industrial machines and equipment, pharmaceutical products, and steel.

According to Dung, Vietnam will be able to earn more from exporting some staples such as coffee, cashew nut, rice, plastic and rubber products if its businesses improve their product quality and promote marketing.

With such records, the UK is one of the leading European Union economic partners of Vietnam, after only Germany.

Regarding investment, Dung said UK businesses see Vietnam as one of the six new favored-emerging markets (CIVETS), including Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa.

According to a recent survey of 520 globally-operating businesses by the UK Trade and Investment (UKTI) and the Economist Intelligence Unit (EIU), Vietnam for the third consecutive time is named as one of the top destinations for investors in the next five years.

Vietnam maintains its high ranking only after the BRICS economies, as 19 percent of the questioned companies see Vietnam as number-one destination for investors, as compared with 20 percent for China and 18 percent for India.

Dung said next year the embassy’s trade mission will pay more attention to providing information on the UK market and barriers to Vietnamese businesses, adding a handbook on the market will be published soon.

The embassy will also coordinate with the UKTI to organize at least a fact-finding tour to Vietnam for UK businesses and help Vietnamese businesses to take part in an international exhibition of plastic products in London in September 2011.

More RoK businesses eye Vietnam’s market

Vietnam is a new phenomenon in economic development in the world and it is a potential market for RoK businesses, affirmed a representative of the Korea Importers Association (KOIMA).

KOIMA President Ju Tea Lee made the remark at a Vietnam-RoK trade seminar in Hanoi on Monday, which was attended by 24 businesses from the RoK.

The businesses, which operate in garment and textiles, furniture, fashion accessories and construction materials came to Vietnam to seek business opportunities, reflecting their interest in Vietnam’s market, he said.

Ju Tea Lee spoke highly of bilateral trade cooperation since both countries set up their diplomatic ties in 1992. Two-way trade rose from US$2 billion in 2000 to $9 billion in 2008 and the figure is expected to hit a record $12 billion this year.

According to Deputy Head of the Ministry of Industry and Trade (MoIT)’s Trade Promotion Department Do Xuan Ha, the Republic of Korea now ranks fourth among Vietnam’s 10 most important trade partners after China, the US and Japan.

By the end of October this year, the RoK became the biggest foreign investor in Vietnam with 2,605 investment projects capitalized at $22.9 billion.

At the seminar, Deputy Head of the MoIT’s Asia-Pacific Department Chu Thang Trung asked the RoK to recognize Vietnam’s quarantine results in farm produce and allow RoK businesses to import Vietnam’s fruits such as dragon fruits, longans and mangoes. He also suggested more seminars and contacts among the two countries’ businesses.

KOIMA and the Vietnam National Vegetable, Fruit and Agricultural Product Corporation signed a farm produce export agreement at the seminar.

FairPrice, Saigon Co.op to develop hypermarket chain in Vietnam

Singapore-based NTUC FairPrice Cooperative Co Ltd (FairPrice) and Saigon Union of Trading Cooperatives Co Ltd (Saigon Co.op) inked an agreement Monday to set up a chain of hypermarkets in Vietnam.

The first hypermarket under the joint venture is expected to be operational in Vietnam by 2012. Its exact location has not been revealed.

As agreed, the hypermarkets will sell products from FairPrice and Saigon Co.op. In return, FairPrice’s chain in Singapore will also offer Saigon Co.op’s products on their shelves.

Saigon Co.op owns and operates a chain of 44 Co.opMart supermarkets, Co.op food and Co.op convenient stores nationwide. Their presence is especially strong in the southern hub of Ho Chi Minh City.

Founded in 1973, NTUC Fairprice Co-operative Ltd has grown to become Singapore’s largest retailer, with a network of more than 230 outlets. It also owns a Fresh Food Distribution Centre and a centralized warehousing and distribution company.

CPI rises 9.58 pct in southern metro

Ho Chi Minh City’s consumer price index was up 1.61 in December, pushing the city’s 2010 inflation rate to 9.58 percent, the city’s Statistical Office has reported.

Garment and footwear prices recorded the sharpest increase – 3.17 percent – among ten groups in the baskets of commodities.

Culture, entertainment and tourism services prices were up 4.6 percent in December compared to last month.

While housing, utilities, and fuel increased by 2.7 percent and restaurant prices by 2.37, food rose 4.56 percent, the agency said.

Experts attributed the increase to high consumer demand for goods and services during the run-up to Christmas and New Year holidays.

In the meantime, Hanoi’s CPI saw an increase of 1.83 percent, the Hanoi Statistical Office has reported.

It went up 9.56 percent year-on-year, the agency said, adding that restaurants, food and fuels were among products that saw price increases between 2.86 - 3.27 percent.

S.Korea firm to import 600,000 T alumina from Vietnam

Dongyang Gangchul will import 600,000 tons of alumina, or 25 percent of South Korea's annual use, from Vietnam as it plans to build a $350 million aluminum refinery, the Korean government said Tuesday.

Dongyang Gangchul, South Korea's No.1 aluminum extruding firm with an annual production capacity of 54,000 tons, has agreed with Vietnam National Coal, Mineral Industries Holding Corp (VINACOMIN) to proceed with building the aluminum refinery in Vietnam, the world's No.4 bauxite producer.

"While South Korea sees its aluminum demand rising, all of the demand is met by imports," the ministry of knowledge economy said in a statement.

"If this (Dongyang Gangchul's refinery) project was successfully conducted, it would contribute to stabilizing the metal supply."

VINACOMIN owns mines of bauxite, which is converted to aluminum via alumina, while it produces 1.3 million tons of alumina per year.

On top of the aluminum refinery project, state entities of the two countries have agreed to widen cooperation in developing energy and resources, such as oil, gas, coal and rare earth in Vietnam and other countries, the ministry added.

Six Senses Con Dao wins international award

The freshly-opened Six Senses Con Dao resort in Con Dao Island off southern Vietnam has won the coveted award of Best International Small Hotel Construction and Design.

The prize, part of the International Commercial Property Awards held in association with Bloomberg, was presented at a gala banquet in London.

Developed by Indochina Land and owned by Thailand-based Six Senses Resorts & Spas, the US$34 million resort offers 50 villas along a mile of sandy beach, sheltered by green forested hills.

The award is in time as the resort was just opened on December 20.

“The Six Senses team has been proud to work with Indochina Land in the development of Six Senses Con Dao and that our collaboration has already achieved such an accolade, is a wonderful measure of a happy partnership,” said Sonu Shivdasani, Chairman and CEO of Six Senses Resorts & Spas.

Rick Mayo-Smith, CEO of Indochina Land said, “Indochina Land shares Six Senses philosophy of ecological design and development, using only sustainable and natural materials.”

This year’s judges for the International Commercial Property Awards include Luke McKend, industry head property markets of Google UK; Peter Bolton King, group chief executive of the National Federation of Property Professionals; and Christopher Hall, president elect of FIABCI.

Other judges are Fiona Nixon, chairman of the Australia Institute of Architects, Hendrik Nelde, president of FIABCI Belgium; Helen Shield, editor-in-chief of International Homes Luxury Collection magazine and Sven Johns, CEO of the German Real Estate Association.

Part of the resort is designed to resemble a traditional Vietnamese village.

Con Dao is part of a 16 island archipelago, most of which is protected as a national and marine park, sheltering and protecting many endangered species.

The International Property Awards cover both residential and commercial categories.

Vietnam dragon fruits exports surge

Export of thanh long, or dragon fruit, is rising, an agriculture official said.

The domestic price of the fruit is at VND21,000 a kilogram, a 20-year-high, because of a fall in output due to bad weather, Nguyen Huu Dat, director of the Ministry of Agriculture and Rural Development’s Post-Import Phytosanitary Department No. 2, said.

Shipments to the US topped 500 tons in the first 10 months and are likely to exceed 800 tons this year, an eightfold increase over last year, he said.

Japan imported 330 tons in the first 10 months and this is likely to rise to 400 tons, he said.

South Korea and Chile have recently started to import the fruit subject to heat-treatment and necessary registration, giving a further impetus to the already rapidly-growing exports.

Vietnam is next eyeing Australia and New Zealand and negotiating to export the fruit to those markets.

The country sells most of its dragon fruit crop to neighboring China, but exports to other Asian nations, the US, and Europe have been picking up.

Lotte Mart to open third outlet in Vietnam

Lotte Mart, a member of the South Korean Lotte Group, will open its third shopping mall in Vietnam in Binh Duong Province as part of plans to expand its network in the growing Southeast Asian market.

Lotte Mart Binh Duong will open at Charm Plaza in Di Anh District which is scheduled to open its doors in 2013.

The 12,500-square-meter, US$7-million mall will sell merchandise ranging from food and household utensils to cosmetics and clothes.

Lotte’s first two outlets are in Ho Chi Minh City’s Districts 7 and 10.

The group, the eighth largest business group in South Korea in terms of assets, has interests in Asia and around the world in food, confectionery, hotels, construction, petrochemicals, and professional baseball.

Vietnam November auto imports up 16 pct

Vietnam’s auto trading companies imported 5,499 fully built cars worth of US$92.7 million in November, a rise of 16.4 percent from October, according to the General Department of Customs.

Between January and November, the country imported 46,940 complete-built cars worth $856.4 million, representing a fall of 32.3 percent and 20.5 percent from a year ago.

The increase in auto imports in November is attributed to the higher domestic demand at the end of the year. However, the rise in November this year is still lower than that of recent years due to the stronger US dollar.

Between January and November, Vietnam imported $1.74 billion worth of auto parts and accessories, up 9.7 percent from last year.

The Ministry of Finance has recently issued a circular on lowering auto import tariffs from January 1, 2011 for autos which have nine seats or less and have cylinder capacity of up to 2.5L or those with cylinder capacity above 2.5L or more.

WWF, Vietnam ink deal over tra fish development

The World Wide Fund for Nature (WWF) and Vietnamese aquaculture officials Friday signed a memorandum of understanding for long-term cooperation to help Vietnam achieve the Aquaculture Stewardship Council (ASC) certification for sustainable development.

WWF offices in Europe have also officially removed Vietnamese Pangasius product from the red list in their customer guidance manuals, said the General Directorate of Fisheries at the signing ceremony between WWF and the Ministry of Agriculture and Rural Development.

Under the MoU, the WWF is responsible for expanding Vietnamese tra fish products meeting ASC standards at good prices worldwide. All the preparatory work, including workshops and training courses for farmers and processors to meet ASC standards, will be completed within the first half of 2011.

WWF will also be responsible for finding all financial sources to support Vietnam in adopting the ASC certification.

Under the deal, Vietnam, will strive to make 10 percent and 50 percent of its Pangasius export products meet ASC standards in 2011-2012, and in 2015 respectively. The national target is 25 percent and 100 percent of Pangasius export products meeting international certifications in 2011-2012 and 2015.

Vietnam, which exports 650,000 tons of catfish annually, is expected to export 800,000 tons in 2015.

Many banks found violating deposit rate cap

Tuoi Tre has found many commercial banks are offering negotiable deposit interest rates of up to 15 percent per year, violating a cap of 14 percent as agreed Tuesday.

Under the consensus of the Vietnam Bank Association’s members, State Bank of Vietnam and commercial banks, the ceiling saving rates in dong will be only 14 percent, including all promotion and bonus, taking effect Wednesday.

In addition, banks have to publicize the interest rate benchmark at its branches and transactions sites.

State-owned banks such as Vietnam Bank for Agriculture and Rural Development (Agribank), Bank for Investment and Development of Vietnam (Bidv), Vietnam Commercial Joint Stock Bank for Foreign Trade (Vietcombank-VCB) and some other big banks immediately lowered the rates as committed.

But rates at some other commercial joint stock banks still exceed the ceiling with additional interest rates included under many forms.

At Nam Viet Commercial Joint Stock Bank (Navibank), the highest dong deposit rate is 14 percent per year.

But according to the bank’s staff, for deposits worth from VND50 million with terms of 1-3 months, the depositors will be able to enjoy a bonus interest rate equaling 1 percent per year, totaling at 15 percent per year.

The bank will pay the bonus in cash right after making deposits. But in case the depositor prematurely withdraws capital, the bonus interest rate will be deducted.

At Gia Dinh Commercial Joint Stock Bank (GiaDinhBank), the dong deposit rate still remains at 15.5 percent per year for 1-2 month terms and three months at 15 percent per year.

Due to its violation, the bank did not publicize the interest rate benchmark and those wanting to know can ask the bank’s staff.

At Vietnam Tin Nghia Commercial Joint Stock Bank, the saving rate was only 12 percent per year. However, it offers scratchcards with prizes ranging from VND60,000 to VND20 million with winning rates of up to 95 percent. Thus, including the prize value, the bank’s deposit rate could easily exceed 14 percent.

Additionally, depositors will have chances to win prizes of up to VND1.8 billion.

In addition, on websites of some banks in Ho Chi Minh City’s District 1, the highest saving rate was 14 percent per year. But, at the transaction sites, the highest level was up to 15 percent per year for 1-6 month terms.

On Wednesday morning, this bank still applied this interest rate benchmark.

At Saigon Hanoi Commercial Joint Stock Bank (SHB), the highest saving rate was only 13.5 percent per year.

But, when a customer had demand of making deposit worth up to VND400 million with one month term, the bank immediately applied the negotiated saving rate of up to 13.8 percent and then 14 percent per year.

Inspectors from the State Bank of Vietnam disguised as depositors have been dispatched to keep a close watch on commercial banks that are likely to break the consensus, newswire VnExpress quoted an SBV official who wanted to remain anonymous.

We are on high alert about that, a director of a Hanoi-based commercial bank told the newswire.

Inspector from the SBV’s branch in HCMC on the same day fined a transaction office of Phuong Dong Commercial Bank (Orient Bank) on Nguyen Thai Binh Street, District 1, for keeping the rate at 14.5 percent until Wednesday afternoon, branch director Ho Huu Hanh told the newswire.

Paper consumers covered by insurance

Saigon Paper Corp inked a VND1 billion (US$50,000) insurance contract with Bao Minh Ben Thanh Co. to cover its customers on Thursday.

Under the one-year contract, the Bao Minh insurer will pay a maximum coverage of VND300 million for each case of respiratory problems or skin allergy caused by using Saigon Paper products that is confirms by health experts.

Customers can call the Bao Minh Ben Thanh Co hotline at 3 990-2288 or the Saigon Paper Corp at 3 845-8866 if any heath problem occurs.

PV