Hanoi begins building two flyovers

Construction of the two flyovers at the Lang Ha-Thai Ha and Chua Boc-Son Tay intersections began on January 21.

The 189m long Lang Ha-Thai Ha flyover is being built at a cost of more than VND67 billion while the Chua Boc-Son Tay bridge is invested at VND65.5 billion. Both will be 4.75m high and 9m wide and consist of two lanes for automobiles and two for motorbikes. Construction is scheduled to be completed in 180 days.

At the ground-breaking ceremony, Chairman of the Hanoi People’s Committee, Nguyen The Thao, asked construction units to take advantage of the Tet holiday to speed up construction time and focus on ensuring quality, as well as worker and traffic safety.

Trade deficit drops in early 2012

Vietnam’s exports, imports and trade deficit decreased dramatically in the first month of 2012, according to the General Statistics Office (GSO).

January’s export revenues are estimated at about US$6.5 billion, a 28.5 drop from the previous month. The figure for imports stood at US$6.6 billion, meaning the trade deficit fell from US$270 million in December 2011 to about US$100 million this month.

As this year’s Tet (Lunar New Year) holiday is prolonged, the time for customs clearances was actually only 15 days, a much period shorter than in previous months, which resulted in a sharp drop in trade revenues, said Le Thi Minh Thuy, an official from the GSO.

However, these strong declines were found mainly in Vietnam’s major export sectors such as garments and textiles, seafood, electronics, computers and spare parts, rubber, timber and wooden furniture.

Meanwhile, imports that recorded a drop in revenues included transport, spare parts, and animal and plant oils.

PM urges accelerating enterprise restructuring

Prime Minister Nguyen Tan Dung has asked for plans to reform, restructure and equitize State-owned enterprises (SOEs) to be approved.

The PM sent his instruction to ministries, ministerial agencies, Government subsidiaries, People’s Committees, economic groups, and State corporations, urging them to step up the restructuring of SOEs.

The ministries managing economic groups and Corporation 91 must submit their restructuring plans to the Prime Minister in the first quarter of 2012.

PM Dung requested that the focus of their plan should be on major sectors and duties in line with the development strategy for the 2011-2015 period, with a vision for 2020.

Hanoi’s CPI rises only 0.96 percent in January

Hanoians were more economical this year during the month before the Lunar New Year festival, resulting in a slower increase in the capital's consumer price index (CPI).

The Hanoi Statistics Office reports that the city’s CPI in January increased only 0.96 percent over the previous month and 16.24 percent against the same period last year – the lowest CPI increase in recent years.

According to the report, post and telecommunications and education saw no CPI increase.

The CPI for food rose 0.44 percent and foodstuffs over 1.5 percent.

Statisticians say that retail sales in January increased by nearly 4 percent against December 2011.

There was also a rise in the price of warm clothing as Hanoi experienced a prolonged cold spell.

Doosan Vina exports distillation towers to Philippines

The Chemical Processing Equipment Plant (CPE) under Doosan Heavy Industries Vietnam Company Limited (Doosan Vina) has exported seven “Made in Vietnam” distillation towers to an oil refinery of the Philippines’ JG Summit Olefins Corp.

The Philippines’ oil refinery, now under construction, is expected to be put into operation in January 2014.

The shipment, weighing 210 tonnes, is part of Doosan Vina’s 2011 production plan, raising its total expected volume last year to nearly 24,000 tonnes.

Four other plants of Doosan Vina are carrying out major projects, including one to build Mong Duong thermal power plant at a cost US$1.3 billion, and a desalinizing plant in Saudi Arabia worth US$1.9 billion-the biggest of its kind in the world.

In 2012, Doosan Vina expects to achieve export turnover of US$200 million, more than double last year’s figure.

VN Airlines' Jetstar bid okayed
 
The Prime Minister has given the okay to national flag carrier Vietnam Airlines' takeover of budget carrier Jetstar Pacific.

Jetstar, which is owned by State Capital Investment Corporation (SCIC), has been in serious financial difficulties for years.

The SCIC has a 70-per- cent State-owned stake in the airline. The remaining shares are held by Australian flag carrier Qantas and Saigontourist.

The takeover plan was first proposed by the Ministry of Finance.

Vietnam Airlines would manage SCIC's total stake in Jestar and appoint its representative at the carrier's board of directors, SCIC general director Lai Van Dao told online newspaper Vneconomy.

"The stake transfer is expected to take place by February 15," Dao said.

Vietnam Airlines has an 80-per-cent stake in the local aviation market, while Jetstar Pacific has about 17 per cent.

The takeover has raised questions about the monopoly status of Vietnam Airlines domestically.

To counter the State airline's dominance locally, Jetstar Pacific would remain an independent carrier, Lai Xuan Thanh, the Civil Aviation Administration of Viet Nam's deputy director, told online newspaper DTinews.

Meanwhile, the Ministry of Transport has proposed raising the minimum legal capital holding of firms involved in aviation transport to reduce the risk of another airline going under, as was the case with Indochina Airlines.

Currently, carriers with between two to 10 aircraft must have a legal charter capital of at least VND700 billion (US$33.5 million) before launching international air routes – as opposed to the VND500 billion figure previously set. To operate locally, airlines must now have reserves of at least VND300 billion ($14.4 million), as opposed to VND200 billion as before.

The Civil Aviation Administration of Viet Nam said aviation costs had risen sharply over the last few years as fuel prices have soared.

HCM City shops top up for Tet
 
Goods for Tet (Lunar New Year) holiday are in abundant supply at local shops, satisfying the diverse demand of consumers in HCM City, according to the deputy chairwoman of the city People's Committee Nguyen Thi Hong.

Hong and HCM City Party committee secretary Le Thanh Hai also met with Vissan Limited Company, which is active in the processing and trading of fresh and frozen meat and meat related foods.

Also at the meeting, Van Duc Muoi, general director of Vissan, reported that the company had completed its preparation of goods for Tet, including 6,000 tonnes of pork and beef.

In addition, the volume of processed foods, including Chinese sausage, pork pies, sausage and canned food had increased by 15-20 per cent compared to the last Tet.

He said his company could meet festival demand since they had stocked enough inventory.

Today and tomorrow (two days before Tet), it would co-operate with Co.opMart, Vinatextmart and Maximart supermarkets to cut by VND10,000 every kilo of fresh pork to help the poor.

Hai praised efforts made by Vissan to serve city residents, saying that prices had remained stable despite having a surge in demand. However, he asked the company to ensure food hygiene and safety.

The volume of vegetables, fruit, poultry and animal meats transported to wholesale markets has risen dramatically in recent days but prices are stable.

At supermarkets and shops that signed up for the city's price-stabilisation programme, prices are stable or just marginally higher, with several supermarkets offering attractive promotions to stimulate buying.

But the prices of many items have risen in traditional markets in major cities in the run-up to Tet.

At Ben Thanh, An Dong and Vuon Chuoi markets in HCM City, prices of pork, chicken, duck and traditional jams have all gone up by VND2,000-10,000 per kilo.

Chicken and duck prices, for instance, rose by VND5,000-10,000 per kilo compared to last week, to around VND120,000-160,000 a kilo of free-range chicken and VND65,000-80,000 a kilo of duck.

Prices of dried shrimp, cuttlefish and fish also increased by VND20,000-50,000 per kilo depending on kinds and market.

Tran Thanh Thuy, who distributes processed food in Mai Dong Market, said the price of many items went up by VND10,000-20,000 compared to normal days.

Chicken prices increased from VND100,000 to VND120,000 per kilo, and beef prices rose from VND220,000 to 250,000 per kilo.

The prices of some kinds of fruits, including Buddha's hand fruit (a lemon-like citrus fruit with no pulp), green banana and pomelo used to display on the traditional "five-fruit tray" have skyrocketed.

Currently, a Buddha's hand fruit is priced at VND40,000-80,000 depending on its size, a normal pomelo at VND30,000-60,000 and a green skin pink-flesh pomelo at VND70,000-100,000.

Stockpiled goods ensure price stability for hols in Quang Tri

Quang Tri Province People's Committee has allocated VND10.8 billion (US$519,230) to several local businesses to stockpile goods during and after Tet (Lunar New Year) in an aim to ensure stable prices and ample supply for consumer goods.

Local businesses have so far spent total VND30 billion ($1.4 million) preparing goods for Tet.

The Quang Tri Trading Company has organised sale trips to remote areas and suburban districts to offer high quality, reasonably priced goods for Tet.

Ccompany director Ho Xuan Hieu said it had planned reserves to cope with consumer demand, and had stocked a variety of goods at good quality and design as well as reasonable prices.

Co.op Mart said the key items for Tet such as mut (preserved fruit), soft drink, glutinous rice, lean pork paste and vegetable pickles were well stocked.

The supermarket planned to make payments in advance with gardeners and co-operatives to ensure an adequate supply of vegetables, fruits and fresh food.

It would organise mobile sale trips to the districts of Cam Lo, Gio Linh, Trieu Phong and Hai Lang and Quang Tri Town.

Quang Tri Province has set up an interdisciplinary inspection team for checking price registration and listed prices for goods.

The provincial Department of Industry and Trade in collaboration with relevant agencies will strengthen market supervision to ensure food safety and hygiene and to discover fake or low-quality goods.

It will also conduct inspections of market traders who supply essential goods in an aim to prevent speculation. The latter could lead to increased prices and shortage of goods.

Department director Ho Dai Nam said the department would continue to encourage and call on local businesses to participate in the price-stabilisation programme to respond to the "Vietnamese priotitise to use Vietnamese products" campaign.

He said local businesses should organise more mobile sale trips to suburban and mountainous districts during the Tet holiday.

Motorbike sales steady for holiday

The motorbike market is abnormally quiet for this time of year, which usually sees a surge in sales, motorbike traders have said.

Traders from motorbike showrooms across the country said that sales had remained slow, despite promotional campaigns.

They added that the situation was in stark contrast to previous months when customers were reliant on waiting lists to give them a chance of purchasing a motorbike.

Motorbike showroom owner Nguyen Tuan Ngoc in District 4 of HCM City said that at the moment, he was selling 10-20 motorbikes per day, higher than a month ago, but a lot less than last year.

Agreeing with Ngoc, a shop- owner in Da Nang, Le Truong Giang, said that in previous years, sales were good approaching Tet, but this year, his shop was full of unsold motorbikes.

Giang added that this year, only people with a real demand for new motorbikes were buying, with the trend for buying new motorbikes at Tet subdued.

To heat the market, agents have cut prices and are offering free services and gifts to buyers, but even they have not been enough to stimulate the market.

Tough economic conditions have been cited as the main reason.

Siemens helps improve training of VN engineers

German engineering giant Siemens on Thursday donated demonstration technology equipment worth US$22,000 to the Ha Noi University of Industry (HAUI) to enable it to set up a European-standard training room.

The new training room will have state-of-the-art technology, and basic training equipment will be provided in the first stage. Other equipment will be donated gradually over the next several years.

Maritime Bank awarded Banking Reputation prize

The Maritime Bank was honoured as one of three Vietnamese banks to win a Viet Nam Banking Reputation Award for 2011.

The awards were announced as part of the Asia National and Best International Communication Reputation Business Awards along with ranking for the top 500 businesses in Viet Nam.

Maritime Bank is now one of the 12 biggest banks in Viet Nam and the first bank to meet risk management standards released by The State Bank of Viet Nam. Its transaction network covers 40 cities and provinces, bringing a profit of over VND1 trillion (US$48 million).

E-payment business tax plan set to reduce costs

The General Department of Tax plans to have at least 50,000 businesses paying tax online this year.

The tax office said online payments would reduce costs and simplify administrative procedures.

Tobacco import quota set at 40,000 tonnes for 2012

 The Ministry of Industry and Trade has issued a circular limiting the amount of tobacco that can be imported this year to 40,000 tonnes.

The circular became effective on January 18.-

VNPT claims 50 million mobile subscribers

The VNPT has announced that it is providing services to 10 million land line subscribers, over 50 million mobile subscribers, 8 million 3G subscribers and 3 million broadband subscribers.

According to a report by the Ministry of Information and Communications, Viet Nam has 12.8 million 3G subscribers and the speed of internet services averages at 2.5 to 3.072 megabytes per second.

By the third quarter of 2011, VNPT had deployed fibre optical cable to more than 95 per cent of communes nationwide.VNS

FPT establishes affiliate in Nigeria

The FPT Software Company has decided to establish a branch in Nigeria.

FPT Nigeria will focus manufacturing and supply of products, software services, wholesale computer sales, telecommunications and IT services and other services related to computer training.

According to a report on Nigeria's information and communications technology market, Nigeria is set to see a rise in numbers of broad band, mobile and internet subscribers. The ICT sector is forecast to contribute 5 per cent to this country's GDP.

Shares stall despite positive inflation data
 
Shares failed to move significantly yesterday in the final trading day before the Tet (lunar new year) holiday, despite the release of encouraging inflation data by the nation's two largest cities.

In Ha Noi, inflation rose this month at a rate of 0.96 per cent compared to December, a slower rate of increase compared to recent years for the month in which Tet was approaching. The figure in HCM City was even lower, at 0.89 per cent increase.

The positive news failed to lift shares on the HCM City Stock Exchange, and the VN-Index closed down by 0.12 per cent to 373.00 points, snapping a nine-day rally.

The value of trades surged by more than 97 per cent over Thursday's level, reaching VND661.7 billion (US$31.5 million), as volume totalled 29.6 million shares.

Over half of all listed shares added points before the close. However, among the 10 leading shares by capitalisation, only Phu My Fertilisers (DPM), Eximbank (EIB) and real estate developer Hoang Anh Gia Lai (HAG) saw gains on the day. HAG's gains came even as its parent company announced significantly lower profits for 2011.

Japan Viet Nam Medical Instrument Co (JVC) continued to be the most-active share in HCM City with nearly 2.3 million traded.

On the Ha Noi Stock Exchange, the HNX-Index inched up 0.05 per cent to 58.44 points. Value reached VND196.8 billion ($9.4 million), an increase of 21.3 per cent over Thursday, on a volume of just over 25 million shares. Advancers outnumbered decliners by 133-97.

VNDirect Securities Co (VND) was the most-active share nationwide with 2.8 million exchanged.

The Vietnamese market was significantly undervalue and offered potentially lucrative investments, according to an article in Forbes magazine by Peter Cohan.

"Indonesia, which has been thought of as a great place to invest in the last year or so, is passe, and the best opportunity in the region for 2012 is to invest is Viet Nam," Cohan wrote. He also noted the high dividend yields of many Vietnamese shares.

"The [average] 12-per-cent yield is extremely high – particularly compared to the sub-1 per cent rates that we are used to earning on our bank accounts."

The markets will close next week for the Tet holidays, with trading to resume on January 30.

Businesses get 3-month income tax extension

Businesses have an extra three months to pay their corporate income tax for 2011.

According to a recent Government decision, businesses can settle their income tax for the first quarter of 2011 no later than July 30, 2012 and no later than October 30, 2012 for the second quarter of 2011.

Agricultural sector seeks sustainable production

The National Agriculture Extension Centre this year has set a goal of sustainable production, with the aim of helping the agricultural sector to improve efficiency, competitive ability and farmers' incomes.

The centre's director, Phan Huy Thong, said new policies would help reduce hunger and poverty as well as encourage farmers to use hi-tech production and processing methods for the commercial sector.

"Extension projects will be integrated into Government programmes, including those aimed at production restructuring, investment restructuring and product restructuring," he said. "This will improve quality, added value, increase farmer incomes, and ensure sustainable agriculture development."

Another important task will be to thoroughly evaluate the economic effect of extension programmes and projects to ensure that they meet the needs of localities and farmers.

Over the next few years, the centre will make efforts to reform agricultural extension by offering professional training for extension workers and launch performance models for farmers to replicate.

It will also strengthen cooperation between extension centres and research institutions, training organisations, enterprises and agencies, as well as international agricultural extension organisations.

Priorities will be given to creating agricultural models in major commercial production areas, locations near urban areas, and sites with a high density of ethnic minorities.

In the 13 years since it was established, the agricultural extension system operates in all 63 provinces and cities down to the hamlet level, and employs more than 36,000 people.

Between 2007 and 2009, the centre co-operated with more than 200 agencies involved in agricultural research and training and with others to set up more than 7,000 advanced production models and provide technology and training to 5,000 of its workers, and nearly 1 million farmers.

Vietinbank to loan $100 million for mining

Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) on January 19 signed an agreement to provide a VND2.1 trillion ($100 million) loan for the Nhan Co Alumina mining project in the central highland province of Dak Nong.

The bank has inked a credit contract with the Vietnam Coal and Mineral Industry Group (Vinacomin), the project's investor, in Hanoi.

The Nhan Co bauxite-alumina project comprises of two components. The first will be a bauxite refining plant, expected to supply 1.65 million tons of bauxite each year. The second will be an alumina plant with capacity to produce 650,000 tons per year.

The project is expected to foster sustainable socio-economic development, security and political stability in the Central Highland and accelerate the regional economic restructuring from agro-forestry to a multi-sector economy with industry and services as its basic components.

Under an approved plan for the period 2007-2015, Vietnam will build a number of alumina plants with a combined output of 6.4 million tons per annum.

On the same day, Vietinbank held a ceremony to hand over 200 houses to poor households in Kon Tum Province. The bank also offered 200 Tet gifts, worth more than VND500 million, to poor households.

Vietnam cosmetic market sees fast growth: expert

lthough Vietnam just occupies 5 percent of the cosmetic market in Asean region, it has been quietly growing as it was only 3% a few years ago, Alain Khaiat, Vice President of the ASEAN Cosmetic Association, told Tuoi Tre in an interview.

Thailand is the leadership of this market with 30%, followed by Singapore with 9 percent while Brunei, Cambodia, Laos and Myanmar are smaller, Alain, who is also President of the Cosmetic Toiletries and Fragrance Association of Singapore (CTFAS), stated during a conference held in Bangkok on Tuesday.

Singapore is 7% down from 9% a few years ago. This is normal as Singapore is a well developed country, with high purchasing power.

However, the expert expected that Vietnam would be as big as Singapore in 2015.

“Vietnam market has been growing quite fast in the last few years. As the economy continues to grow more people will be able to afford more products,” he said.

Nevertheless, Alain also pointed out some problems that could hinder Vietnam from developing cosmetic products.

“One thing hurting in Vietnam is that there are too many fake products. The government has to be tough on those making or selling fake products and the public has to be educated not to buy these,” he warned.

According to him, ASEAN now occupies a very small proportion of global natural & organic market, but it is growing with the economic development and the concern about environment.

“It would also be beneficial for farmers in Vietnam to develop organic farms,” he judged.

US is the biggest market in this field, followed by Germany, France, Italy and UK.

As the market for beauty food is growing rapidly in the world, Thailand, the leadership of this field in Asean region, will organize the two exhibitions Bio Beauty and BioFit (BeFit) and Health Food & Ingredient Thailand 2012 from March 29 to April 1 in Bangkok to promote Asean as the center of health food, beauty wellness, fitness, anti-aging and rejuvenation products and service.

“In total we expect 200 exhibitors from Thailand, Philippines, Indonesia, Philippines, Malaysia and Vietnam, 150 of which from health foods and organic foods, 50 from natural and organic beauty products and herbal medicine and drinks,” said the organizers.

Health Food & Ingredient Thailand 2012 is in its second year, while BioBeauty & BioFit is held for first time this year.

The numbers of visitors are expected to increase from 24,000 last year to 30,000 this year.

Overseas and Asean visitors are also believed to surge from 1,600 last year to around 2,200 this year.