VN retail boosted by foreign support

Viet Nam's retail sector, with help from foreign retail distributors, has initially shown a change for the better.

The total retail sales of goods and services in 2011 reached over VND2 trillion (US$90 billion), a year-on-year increase of 24.2 per cent despite economic downturn.

At present, there are 650 supermarkets in 59 out of the 63 provinces and cities across the country and 117 shopping centres in 32 provinces and cities.

The number of newly-established supermarkets and shopping centres after five years of joining the World Trade Organisations (WTO) in 2007 has surged by an average of 20 per cent and 72 per cent compared to the 2002-06 period, respectively.

In addition, thousands of speciality shops and convenience stores have joined the chain nationwide. The country's retail industry has improved its position in the national economy with a contribution of over 14 per cent of GDP and employment.

Hi-tech urban complex to bridge border

The northern border province of Quang Ninh will team up with Amata-Tuan Chau Joint Venture to build a high-tech urban complex in the locality.

A strategic co-operation agreement to this effect was signed between the Quang Ninh provincial People's Committee and the Amata-Tuan Chau Joint Venture on Saturday.

The complex, to be built in Quang Yen, Ha Long and Uong Bi in Quang Ninh, will become a dynamic and effective economic zone with the aim of promoting environmentally sustainable development in combination with socio-economic harmony to attract more investors to Quang Ninh.

Under the agreement, participants in the project will create the most favourable conditions for each party to finalise the necessary procedures for early construction of the complex.

Amata and its subsidiaries is one of the leading groups in Thailand involved in real estate, industrial zone, water treatment and distribution projects in many countries around the world.

Auto giants choose to steer clear of national motor show

Many well-known automobile brands in the Vietnamese market will not be present at next week's Vietnam Motor Show 2013, the country's biggest annual exhibition.

Instead, they are promoting their vehicles independently, according to VnEconomy online newspaper.

The show is a place for businesses to introduce new products and seek partners. However, three giant domestic automobile businesses (Thaco Truong Hai, Hyundai Thanh Cong and Vinaxuki) and three international firms (Subaru, Orsche and Rolls-Royce) all chose not to participate.

Thaco Truong Hai and Hyundai carried out their own programmes to introduce new cars.

Early this month, Thaco Truong Hai held a ceremony to introduce the Mazda2 S sedan and Kia K3, which will replace its older Forte sedan.

Hyundai Thanh Cong launched the Accent Hatchback and said the all-new Hyundai i10 would be released in November.

Porsche did not reveal its reason for not attending the Viet Nam Motor Show after participating last year, but it presented versions of luxury model Panamera on October 10.

Rolls-Royce warmed up the market by announcing its plan to release Phantom, Ghost and Wraith, worth billions of dong. The firm also reported that it would introduce a gilded version of Ghost.

Before 2012 only members of the Vietnam Automobile Manufacturers' Association (VAMA) could participate in the show. But as the number of import cars increased, the association opened the show to cars imported from official suppliers.

Consequently, many firms have not invested in building their own factories, instead developing a distribution network of imported cars.

In nearly five years, Viet Nam will have to break its tariff barriers on import cars when the country fully participates in the ASEAN Free Trade Area.

At present, VAMA members including Toyota, Ford, Honda, Mercedes-Benz and GM have an advantage in making products with the localisation rate.

Under localisation policies, these firms receive support from the Government. However, after many years, the firms' localisation rate has not exceeded 10 per cent for sedans, much lower than the target.

Mobile users resent huge 3G fee hike

Last week the country's three biggest mobile operators hiked average 3G tariffs by 20 per cent and prices of unlimited packages by 40 per cent.

Subscribers are not amused for it was the second massive hike in 3G fees this year by Vinaphone, MobiFone, and Viettel, who together control 95 per cent of the market.

The operators justified their decision by saying that telecom firms are prohibited from offering services at lower than cost and that they have to make up the losses suffered from low prices in the beginning.

They said 3G prices in Viet Nam are still only a 10th of Chinese tariffs and a 40th of that in Europe.

Viettel said the new rates are close to cost.

VinaPhone said it plans to use the higher revenues to improve its network.

MobiFone said it needs the money since the number of 3G users is substantially and the network needs to be expanded.

Whatever their claims, 3G service providers have managed to make great profits over the last few years.

Viettel, for instance, achieved a turnover of VND141.42 trillion (US$6.7 billion) in 2012, a 21 per cent rise from the previous year, and profits estimated at VND22-23 trillion ($1.04-1.09 billion).

Critics said a 40 per cent increase was too steep, especially for students who need to use the internet a lot for their studies.

The companies may claim tariffs in Viet Nam are the lowest in the world, but the country's average income is also much lower than that of many others.

Worryingly, there are signs of alleged collusion between the three dominant companies, which have increased tariffs by the same amount at the same time.

But since they account for almost the entire market, 3G users have no choice but to continue using the services and shell out more.

Authorities are duty-bound to investigate if the companies have formed a cartel.

As if to rub salt into consumers' wounds, mobile operators periodically ratchet up prices but do little to improve quality.

A survey by market research firm Nielsen and Vietnam Post newspaper in Ha Noi, Da Nang, and HCM City last year found that despite the strong growth in 3G demand, customer satisfaction was down to 64 from 71 per cent in 2011.

Banks set to cut rates

Many banks plan to cut lending interest rates by 1 per cent soon, hoping this will help them achieve their credit growth target.

Their plan is based on the hope that the business environment will see positive changes, enabling them to increase lending.

It is feasible since they have plenty of liquidity now.

In recent months, interest rates have dropped sharply to 7-11 per cent for short-term loans and 11-13 per cent for medium- and long-term loans, but failed to spur lending growth, putting banks in danger of failing to achieve their targets.

Many are looking to slash the rates further, even to below deposit interest rates, through preferential lending packages.

Among of them are HDBank, BIDV, Vietinbank, Vietcombank, Agribank, MHB, DongABank, Sacombank, NamABank, KienlongBank, Military Bank, ABBank, and ACB, who have signed up for a VND3 trillion central bank credit programme at 8-9 per cent interest.

Under the agreement, the lenders will provide credit to 57 companies and two household businesses to help them rejuvenate their business.

For most of the businesses the peak season has just begun.

Besides cutting interest rates, the banks have also tweaked lending conditions, making them more flexible to enable companies to get cheap loans.

They have also resorted to measures such as delaying default deadlines to reduce pressure on borrowers and sell bad debts among themselves – and now to the Asset Management Company — to pump more money into the economy.

A survey done by the central bank's Monetary Forecast and Statistics Department found that banks' deposits and loans are likely to increase by 10-20 per cent by year-end.

Meanwhile, interest rates on the inter-bank market have also been declining, and inflation and exchange rates are stable.

Property transparency

The revised Law on Housing and Real Estate Business, for which the Government is soliciting public opinion, is expected to help better control the property market.

In 2009 the Government brought in a regulation requiring all real-estate transactions to be carried out through transaction floors to make the market more transparent.

While the number of transaction floors quickly multiplied, their effectiveness has not been as expected.

According to the Ministry of Construction, by March the country had 1,012 property transaction floors, including 469 in Ha Noi and 397 in HCM City.

In 2012, around 8,000 transactions were done through them.

Among the weaknesses of the system are the shortage of information, lack of a national data system, poor professional skills of employees at trading floors.

As a result, they have been unable to make accurate or consistent forecasts about the market.

The transaction floors' main task is to offer advice on prices and relevant legal procedures to enable people to buy properties at market rates, but most of them now act merely as intermediaries between sellers and buyers to get commissions.

Official agencies lack comprehensive data about residential housing projects, total office space available for rent, or commercial space, not to speak about real estate prices.

The revised law will not force organisations and individuals to carry out transactions at the real-estate floors, only encourage them in the interest of transparency.

This means that organisations and individuals can also turn to their lawyers for help when they want to buy real estate or invest in property projects.

This will mean the survival of the fittest for the transaction floors, with only the most professional and efficient thriving.

The amended law also requires property developers to report on their progress and real-estate transaction floors to report on transactions. Failure to do so will be penalised.

Business start-ups

The service sector has seen the largest number of businesses being incorporated in HCM City in the first half of the year.

In the period, 11,900 firms were established, 76.4 per cent of them in the service sector. Those providing food- and drink-related services account for the largest number.

Companies in manufacturing and construction made up another 23.2 per cent of the start-ups.

There were in all 477 private business, 1,200 joint-stock companies, and 10,100 limited liability companies with a combined registered capital of VND55.2 trillion ($2.62 billion).

Many entrepreneurs choose the service industry to improve their situation after struggling for long with difficulties, even bankruptcy, since the sector requires less investment than most other sectors.

Besides, many companies hit hard by the economic downturn and with little resources left have also shifted to the service industry.

Figures from the municipal Department of Planning and Investment show that 8,300 firms suspended operation in the period and over 1,110 closed down.

Incentives help spur on domestic real estate market

The real estate inventory is finally decreasing, albeit slowly, said an official of the Ministry of Construction.

In the first nine months of this year, real estate inventory across the country reached VND101.9 trillion (US$4.8 billion), VND12.6 trillion lower than the value in the first quarter.

The reduction was due to more local real estate transactions, according to the ministry.

Investors nationwide focused on promoting apartments and houses to potential buyers.

Many commercial projects were converted to social housing so investors could take advantage of a VND30 trillion ($1.4 billion) preferential credit package. Almost all the dwellings sold were small, affordably priced apartments.

Many enterprises, especially in the south, cut prices by restructuring plans to push down production costs.

Minister of Construction Trinh Dinh Dung said the value was calculated from completed property products, although projects currently in the site clearance and construction stages also had high value.

The important thing was to square the oversupply of luxury property with the lack of affordable apartments, he said.

The ministry instructed provinces and cities to create favourable conditions for enterprises and investors to convert commercial projects to social projects as demand required.

Economist Tran Du Lich agreed the supply of low-income housing for workers should be increased, but argued the State should use the VND30 trillion package to support buyers rather than sellers.

Property expert Dang Hung Vo said many changes were needed to spur a real estate recovery, including new State policies, heightened efforts by investors and the renewed confidence of consumers.

If consumers had confidence in the market, they would invest 400 tonnes of their gold inventory in the local property market, Vo said.

Nationwide, VND4.48 trillion has been invested in 4,015 housing projects, according to the construction ministry. Of the total registered investment, VND774.7 billion (17.26 per cent) has been disbursed.

Fruit exports to produce gains

Viet Nam expects to gain US$1 billion from exporting fruit and vegetables this year, according to the Viet Nam Vegetable and Fruit Association (Vinafruit).

Last year, 13 markets for Vietnamese produce imported more than $10 million each, including China with an import value of $218 million, Japan with $54.6 million and the US with $39.9 million.

This year, almost all the markets continued to see strong growth.

To achieve the $1 billion target, enterprises planned to develop a professional export strategy and cooperate with large importers and distributors to increase market share, the association said.

In the first nine months of this year, the export value of produce gained a year-on-year rise of 30 per cent to $780 million; the industry also raised exports of both high value and processed products, according to the Ministry of Industry and Trade.

China remained the largest export market for Vietnamese produce with export value of $225 million, 43 per cent higher than last year due to high demand and low transport costs.

The second- and third-largest export markets were Japan and the US, said Nguyen Van Ky, Vinafruit general secretary.

Local enterprises promoted investment in technologies for processing, drying and canning so that they could ship more high-quality dried and canned fruit products to China, Ky said.

Other export markets with high demand, such as the US, Japan and the EU, also saw stable growth in the past three to four years. Local enterprises diversified the range of products exported to the US, which includes pineapples, bananas, dragon fruit, rambutans, coconuts, jackfruit, lemons, tamarind, cabbage, cucumbers, onions, beans and chilli peppers.

They also increased the export volume of fresh produce and cut down on exports of canned products.

In the first eight months of this year, produce exports to the US rose 42 per cent in value to $33 million. On June 30, the EU permitted Vietnamese businesses to export certain vegetable and fruit products that were previously banned, so produce exports to the EU rose by 20 per cent each month.

Vinafruit expected demand for Vietnamese produce in these major markets to increase sharply by the end of the year.

Dragon fruit has the largest export volume, accounting for 40 per cent of the total export value on continued demand from several markets including the US, Australia, New Zealand and South Korea.

HCM City aids struggling co-operatives

The HCM City People's Committee has asked local agencies to offer training to cooperatives of at least three to seven members so they can improve their business.

The committee has also told local agencies in the agriculture sector to assist these cooperatives in gaining credit.

Under the committee's instruction, the city's Co-operative Alliance will work with the State Bank of Viet Nam's HCM City branch and other credit institutions to survey cooperatives' need for capital.

The cooperatives will be given guidance on how to apply for bank loans.

The city's Department of Agriculture and Rural Development will also help agricultural cooperatives to diversify their products and apply Vietnamese good agriculture practices.

The city has a total of 4,277 co-operatives of at least three people and 53 co-operatives of seven or more members. Nearly 70 per cent of the co-operatives operate effectively but others do not.

The city targets developing 600 new co-operatives of three or more people, 75 new co-operatives of seven or more and three co-operative alliances by 2015.

The city expects the cooperative economy to achieve a growth rate of 10 per cent a year, accounting for 1 per cent of the city's GDP by 2015.

By 2020, the city will develop 1,500 new co-operatives of three or more, 175 new co-operatives of seven or more and 10 co-operative alliances.

Under the plan, small co-operatives that have ineffective services will be merged and co-operatives that operate ineffectively for a long period will be dissolved by 2020.

The plan targets that more than 70 per cent of co-operatives and co-operative alliances to turn a profit by 2020.

Agricultural exports to fall below expectations

Exports of some light industrial products are expected to increase this year while shipments of agricultural products will likely fail to meet the annual target.

This was forecast by industry representatives at a meeting with the Ministry of Industry and Trade in HCM City on Thursday.

Chairman of the Viet Nam Footwear Association Nguyen Duc Thuan said that the footwear industry would likely fetch US$9.5-10 billion this year thanks to abundant export orders from foreign markets.

Deputy General Secretary of the Viet Nam Apparel Association Nguyen Van Tuan also expected the garment and textile industry to earn $18.5 billion this year.

However, representatives from agricultural associations were concerned about the export prospects of their products.

A delegate from the Viet Nam Cacao and Coffee Association said that export value of the industry would reach only $2.8 billion this year against last year's $3.4 billion due to a decline in both volume and value.

He said that coffee prices, currently VND44,500 per kilo, had decreased in recent months and would likely reduce further next month when the harvest started.

The rice industry is in the same boat.

Chairman of the Viet Nam Food Association Truong Thanh Phong said that the industry aimed to export 7.5 million tonnes of rice this year, but after difficulties faced in the first half, it had to adjust down to 7 million tonnes and was even concerned it would fail to meet that low target.

Export turnover of rubber, coffee, rice and cassava declined in the first nine months according to MoIT. Coffee and cassava exports dropped more than 20 per cent in both value and volume. Rubber and rice also declined by more than 15 per cent.

Agricultural associations attributed the decline to financial difficulties and fiercer competition.

To boost exports in the last months of the year, the Viet Nam Cacao and Coffee Association recommended the Government stockpile coffee and help coffee producers and traders access preferential loans.

The rice association asked the Ministry of Industry and Trade to monitor rice exported via northern border provinces, as illegal exports would hurt the image of Vietnamese rice.

Pepper exports explode above US$850m on continued demand

Viet Nam, the world's largest pepper exporter, is expected to export 130,000 tonnes of pepper worth US$850 million this year, up $50 million from last year, according to the Viet Nam Pepper Association (VPA).

Speaking at a conference in HCM City yesterday, Do Ha Nam, VPA's chairman said the country shipped 113,962 tonnes of pepper for a value of $755 million in the first nine months of the year.

Both prices and demand have been stable in the period, Nam said.

Do Trung Binh of the Institute of Agricultural Science for Southern Viet Nam quoted the International Pepper Community as saying that the global pepper output this year would be about 315,000 tonnes, while demand would rise by 5 per cent from 310,000 tonnes last year.

"If you calculate local demand from pepper-producing countries, the pepper supply is much lower than demand, which has kept prices high in both local and foreign markets," he said.

Pepper is one of the country's key agricultural exports, said Nguyen Trong Thua, director of the Department of Processing and Trade for Agro-Forestry-Fisheries Products and Salt Production.

The growth of the pepper industry has improved the incomes of thousands of farmers, he said.

"But the pepper industry still faces many challenges," he added.

"The current high prices of pepper have caused farmers to rush to plant trees, making it hard to control disease," he said, adding that the excessive use of fertilisers in certain areas also threatened sustainable development of the sector.

Nam said the country has about 60,000ha under pepper cultivation, 10,000ha higher than the zoning plan until 2020 set by the Ministry of Agriculture and Rural Development.

Despite higher cultivation areas, pepper outputs each year have fallen due to the impact of disease and unfavourable weather, he said.

Despite being the world's biggest pepper exporter, Vietnamese pepper is exported mostly as a raw product at low prices and with no brand name, the conference heard.

Nam said the sector should invest more in technologies to diversify products and improve quality, and develop brand names.

Conference attendees also called for a reduction of fertilisers and pesticides and told farmers to apply advanced production techniques to ensure food hygiene and safety.

They said that local governments should warn farmers that they should not plant pepper in unsuitable places.

Binh said that Good Agricultural Practices in pepper farming would satisfy strict requirements set by importing countries.

"Global pepper demand will remain high next year, while supply will be virtually unchanged or slightly increase," Nam said, noting that pepper prices will remain high through next year.

However, according to IPC, from 2015 onward, global pepper output is projected to go up, and prices may fall.

Vietnamese pepper is exported to more than 80 countries and territories, with the EU, Asia and the US being the largest importers. In Viet Nam, pepper is grown mainly in the provinces of Binh Phuoc, Gia Lai, Dak Lak, Dak Nong, Dong Nai and Ba Ria-Vung Tau.

Cheap housing fair draws thousands

The second trade show of cheap social housing in Ha Noi attracted thousands of potential home buyers.

Deputy Minister of Construction Nguyen Tran Nam said the event would make the real estate market more transparent by connecting sellers with buyers.

Prospective buyers at the event wanted to purchase their houses directly from sellers, without going through real estate brokers, which would help boost the liquidity of the frozen real estate market.

The property market played a very important role in the market-oriented economy, he explained, so the current frozen market hugely affected the country's economic growth and many other industries.

The organising board received sales registration for more than 2,000 social and 1,500 commercial housing projects from property developers, as well as more than 2,000 registrations from potential home buyers.

Housing projects introduced at the show cost from VND9 million per square metre to VND12 million per square metre.

The show, jointly organised by the Ministry of Construction and real estate agencies, will take place from October 18 to 20.

Seafood producers hit by VAT issues and import duties

Difficulties in the implementation of value-added tax (VAT) refunds and deductions have contributed to capital shortages at aquatic businesses.

This opinion was voiced by Truong Dinh Hoe, general secretary of the Viet Nam Association and Seafood Exporters and Producers (VASEP).

Meeting with the Ministry of Finance in Ha Noi earlier this week, Hoe said enterprises have faced high import taxes and administrative problems over VAT refunds for the purchase of input materials, which are then be used in the production of items for export.

He said there was no regulation stipulating the maximum time for tax agencies to verify VAT payment, thus making exporters wait for a long time for the tax refund.

He added that aquatic exporters were required to pay VAT and import tax before implementing customs clearance.

He said this created a risk of them incurring tax debt within two months if their exported items were returned due to commercial barriers and packaging mistakes despite them paying VAT before.

Do Hoang Anh Tuan, Deputy Minister of Finance, said reports from provinces showed that some businesses have taken advantages of VAT refunds and reductions for tax evasion by purchasing goods in several localities.

Other businesses used illegal VAT invoices to apply for the tax reduction and refund to appropriate taxes.

Tuan said the ministry had asked tax agencies to investigate businesses with high tax risks to prevent tax fraud and losses to the State budget collection.

He also asked the General Department of Taxation to review the amended Law on Tax Management to crackdown harder on fraudsters.

Infrastructure boost brings HCMC real estate sheen

Infrastructure works that are under construction and will help ease congestion to the eastern part of HCM City are expected to abet property development there, according to market observers.

Infrastructure is always a key factor in real-estate development, and several projects in the eastern districts of 2, 9, and Thu Duc are on the verge of completion.

The Sai Gon Bridge 2, for instance, is due to open to traffic in early November, significantly contributing to easing congestion and shortening the travel time from the eastern part to the city centre.

Connecting District 2 with Binh Thanh and built next to the existing Sai Gon Bridge, it was completed on September 12 after a year and a half of construction.

The six-lane, VND1.5 trillion bridge is 987.3 metres long and 23.5 metres wide.

Besides, the expansion of the Ha Noi Highway from the new bridge to the Dong Nai Bridge in Bien Hoa and the ongoing construction of the city's first metro route have also helped create a buzz around property projects in Districts 2, 9, and Thu Duc, especially along this route.

They include Thao Dien Pearl, Tropic Garden, the Vista, the Estella, Imperia An Phu, and Cantavil Premier.

A four-lane steel fly-over recently built at the Thu Duc crossroad has helped ease traffic from HCM City to Bien Hoa and Dong Nai, benefiting real-estate projects far away from the city centre, especially low-cost ones.

The developers of many property projects in District 9 are busily preparing to attract customers, with many roads in this area being upgraded and expanded.

HVK Company is set to launch a promotion to sell 650 apartments in its Eastern Building project.

The Thu Duc Housing Development Joint Stock Company is offering for sale land plots at its Phuoc Long project.

Many other land projects in Bien Hoa and Long Thanh are waiting for the Long Thanh-Dau Giay Highway to be finished in late 2014.

Company directors say higher pay would lead to better performance

Dragon Capital's Vu Huu Dien said company leaders should be paid more during a Tuesday meeting in Ha Noi held by the State Capital Investment Corporation (SCIC) and the Ha Noi Stock Exchange.

Salaries for directors and board members at the stock market's top 10 firms increased through the 2010-12 period from 39 to 52 per cent, ranging between VND900 million – VND1.9 billion (US$42.4-89.6 million) – four to five times higher than the average pay of staff.

"It should be 20-30 times that within the next three years," Dien said.

Currently, only 20 per cent of income comes from salary, while 78 per cent comes from allowances and barely 2 per cent from shares. Dien suggested that structure be changed to 60-20-20.

"Companies typically set up salaries for directors in accordance with the level of their rivals," he said, adding that this strategy resulted in a lack of competitiveness that failed to encourage long-term contributions.

In addition, leaders are often rewarded for past achievements instead of expected contributions.

According to circular 121/2012/TT-BTC on corporate management, businesses must have a remuneration department.

"But it does not exist in many companies, or if there is, it is not independent enough," Dien said.

A SCIC representative agreed that it was "vital" to "create incentives for board members" to work harder to develop their companies.

Russian meat firms look to VN

Nine Russian companies are looking to export meat products to Viet Nam, according to an announcement from Itar-Tass and the Russian Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor).

The announcement noted that at least five Russian poultry producers wanted to export to Asian markets, including the Miratorg Agribusiness Holding, Prioskolye, Belgramkorm and Petelinskaya poultry farm and Uralbroiler.

A representative from Rosselkhozandzor said an agreement had been reached that Vietnamese poultry experts would have 30 days to consider the list of Russian producers.

If any were chosen, the successful applications would be able to commence exports in two to three months.

Steel maker's sales surge

Hoa Phat Group's steel sales rocketed 7.86 per cent on last year's figures to 490,000 tonnes.

In the first nine months of this year, the group's market share reached 14.5 per cent, up 0.8 per cent from last year.

In September alone, construction steel volumes stood at 59,400 tonnes, up 10 per cent on 2012 figures.

The group's steel production is expected to grow on the back of a new steel complex put into operation early this month.

VCCI starts female leaders club

The Viet Nam Chamber of Commerce and Industry (VCCI) will debut its women's leaders club in the central city today to mark Vietnamese Women's Day (October 20).

The club, which will draw the participation of 500 women from Vietnamese and foreign businesses, will provide a forum for sharing experience in the business sector.

FPT IS, SBV sign CIC contract

The State Bank of Vietnam (SBV), FPT IS and DP Information Network yesterday signed a deal to implement a data management system for the Credit Information Center (CIC).

The project is part of SBV's financial and information management system project (FSMIMS) to build managerial capacity and modernise the nation's finance and banking sector.

The FSMIMS will assist SBV, the Credit Information Center (CIC), and the Deposit Insurance of Vietnam (DIV) to bring key functions in line with international standards by developing a centralized and integrated system of advanced business processes and a modern information technology architecture.

Can Tho boosts seafood exports

 The Mekong Delta city of Can Tho is striving to ship 170,000 tonnes of seafood abroad by the end of this year, up 30,000 tonnes year-on-year.

This is expected to bring revenue from the city's exports to US$1.46 billion for the whole year, an increase of $210 million over last year.

To realise this goal, the city plans to diversify its high-quality products, pay due attention to food hygiene, and focus on processing prawns and fishes that are of major demand in the global market.

The city also facilitates links among businesses in the field to speed up the technology transfer and application in manufacturing, aiming to enhance the products' competitiveness and tailoring to the taste of choosy markets.

In addition to working with relevant agencies to solve difficulties in tariff and non-tariff barriers in the global trade market, local authorities have supported enterprises to promote trade and popularise Tra fish products to foreign importers and customers.

Swiss Economic Minister to visit Vietnam

Swiss Federal Economic Affairs Department Chief Johann N. Schneider-Ammann will visit Vietnam on October 24–25 at the invitation of Minister of Industry and Trade Vu Huy Hoang.

A delegation of 17 businesses will accompany Schneider-Ammann, with operations spanning pharmaceuticals, banking, insurance, machinery, energy, watches, airport services, railways, industrial consultancy, and construction.

The delegation is scheduled to meet Vietnamese leaders on October 24 to discuss bilateral economic cooperation and the ongoing negotiations of the European Free Trade Association (EFTA) and the Free Trade Agreement (FTA) between the two countries.

They will visit Ho Chi Minh City on October 25.

Trade expo links Vietnam, Cambodia military firms

The 2013 Vietnam-Cambodia trade fair will commence on November 14 in Cambodia’s capital city Phnom Penh, said a representative from the Defence Ministry at a press briefing on October 18.

The trade show aims to consolidate the traditional friendship and solidarity between the two armies, as well as support Vietnamese businesses in trade promotion in Cambodia and other ASEAN countries.

According to the organising board, as many as 200 Vietnamese enterprises have registered with more than 300 booths introducing high-quality products.

During the five-day event, art troupes of the two countries’ militaries will entertain fair-goers with nightly musical and dance performances.

In addition, Vietnam’s Military Hospital 175 in association with Cambodia ’s Royal Army Hospital 179 will operate on 300 cataract patients.

Statistics provided by the Trade Counsellor at the Vietnamese Embassy in Cambodia show that bilateral trade between Vietnam and Cambodia has constantly increased, reaching US$ 3.3 billion last year and US$2.6 billion in the first nine months of this year. The figure for the entire 2013 is estimated at US$3.5 billion.

Lao Cai to host Vietnam-China int’l trade fair

Nearly 500 businesses from home and abroad are expected to get together at the 13th Vietnam-China International Trade Fair, which will open in Lao Cai city on January 13.

The event aims to develop economic cooperation between the northern province of Lao Cai and China’s western provinces, said Director General of the Vietnam Trade Promotion Agency Do Thang Hai, at a press briefing in Hanoi on October 18.

It will also help participants seek partners and expand their market, benefiting Vietnam-China border trade relations, Hai added.

The fair will house 700 pavilions, including 250 from foreign businesses and localities, Vice Chairman of the provincial People’s Committee Nguyen Thanh Duong revealed.

The stalls will showcase a wide range of products such as handicrafts, machines, electric and electronics appliances, seafood, and tourism services along the Kunming-Lao Cai-Hanoi-Hai Phong-Quang Ninh economic corridor.

A number of seminars will be held on the sidelines of the event for businesspeople from both sides to meet and exchange with each other.

Organised by the Ministry of Industry and Trade and the Lao Cai provincial People’s Committee, the event will run until January 18 as part of the 2013 national commercial promotion programme.

Seafood exports hit US$1.8 billion in Q3

Vietnam’s third quarter seafood exports reached US$1.8 billion, up 12.5 percent  from the same period last year—pushing the nine month cumulative total up 4.5 percent to US$4.7 billion.

The Vietnam Association of Seafood Exporters and Processors attributes the achievement to a steady rise in shrimp exports since the second quarter of 2013. Third quarter shrimp exports grew by as much as 65.5 percent compared to 2012’s baseline and is expected to surge further ahead in the coming months.

Tra fish exports fell 1.4 percent in July and 7.7 percent in August. A rebound is forecast during the remainder of 2013.

Tuna exports have plummeted by 20 percent over recent months. Vietnam’s 2013 tuna exports are predicted to total around US$ 540 million, 5 percent below 2012 levels.

VAMC to issue second batch of special bonds

The Vietnam Asset Management Company (VAMC) has decided to issue its second batch of special bonds to help handle bad debts for several banks, the State Bank announced on October 18.

The bank said the bonds, worth of VND3,070 billion (US$146.1 million) with five-year maturity from October 22, 2013 to October 22, 2018 and a zero percent interest rate, are sold for its three clients, namely Sai Gon Commercial Bank (SCB), Southern Bank, and Agribank.

Of the total, SCB will buy nearly VND1,191.7 billion; Southern Bank, over VND154.5 billion; and Agribank, approximately VND1,723.8 billion.

On October 14, VAMC had already issued bonds worth of VND792.6 billion for SCB, Sai Gon Hanoi Bank (SHB) and Petroleum Bank (PGBank).

High-tech urban complex to take shape in Quang Ninh

The northern border province of Quang Ninh will team up with Amata-Tuan Chau Joint Venture to build a high-tech urban complex in the locality.

A strategic cooperation agreement to this effect was signed between the Quang Ninh provincial People’s Committee and the Amata-Tuan Chau Joint Venture on October 19.

The complex, to be built in Quang Yen, Ha Long and Uong Bi in Quang Ninh, is expected to become a dynamic and effective economic zone with the aim of promoting environmentally sustainable development in combination with socio-economic harmony to attract more investors to Quang Ninh.

Under the agreement, participants in the project will create the most favourable conditions for each party to finalize the necessary procedures for early construction of the complex.

Amata and its subsidiaries is one of the leading groups in Thailand that get involved in real estate, industrial zone, distribution and water treatment projects in many countries around the world.

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