Shares dive with sluggish trading

On the HCM Stock Exchange this morning, the VN-Index lost 1.15 per cent compared to yesterday to close at 356.21 points.

Losers overwhelmed gainers by 134-86.

Market value plunged 50 per cent from yesterday's level, totalling just VND398.8 billion (US$18.8 million). Trading volume reached 29.1 million shares, or 63.3 per cent of yesterday's figure.

Among blue chips, only a few managed to add points, including Vietinbank (CTG), Eximbank (EIB) and hotel and entertainment service provider Vinpearl (VPL). Meanwhile, PetroVietnam Finance (PVF) plunged to its floor price of VND7,800.

Sacombank (STB) – one of the largest shares led by capitalisation – was the most active stock in HCM City with around 2.2 million shares changing hands. It closed unchanged from yesterday's session.

The HNX-Index on the Ha Noi Stock Exchange retreated 0.7 per cent to hit a new low of 58.00 points with decliners largely outnumbering advancers by 167-68.

The value of trades decreased by 38 per cent to just VND200 billion ($9.4 million) on a volume of nearly 26 million shares.

The most heavily traded stock was Kim Long Securities Co (KLS) with roughly 2.6 million shares exchanged.

Inflation worries weigh on market

Blue chips plunged in the closing minutes of yesterday's session, dragging down indices on both of the nation's stock exchanges, as newly released data showed the full-year pace of inflation had exceeded the Government's targets and this week's hike to electricity rates fanned expectations of higher inflation next month.

The inflation rate for the year was officially pegged at 18.12 per cent, with the Ministry of Planning and Investment admitting yesterday that higher electricity costs and air fares were likely to further drive up the consumer price index in January.

Deputy Prime Minister Vu Van Ninh also predicted yesterday that the global economy would continue to cope with a lot of difficulties next year, with inescapable impacts on the domestic economy.

"The State Bank of Viet Nam will continue tightened monetary policies in the coming year, ensuring credit growth ranges from 15 to 17 per cent," Ninh said.

"This is really bad news for the market at this point," commented Kim Eng Securities Co analyst Nguyen Thanh Lam. "The two benchmark indices are now approaching their support levels but about to break them."

On the HCMC Stock Exchange yesterday, decliners outnumbered advancers by four-to-one with over 60 per cent of decliners dropping to their floor prices, helping erase all of the gains seen in the VN-Index on Wednesday. The Index closed at 360.37, a loss of 2 per cent from the previous session.

Large-cap shares like insurer Bao Viet Holdings (BVH), Phu My Fertilisers (DPM), property developer Hoang Anh Gia Lai (HAG), steelmaker Hoa Phat Group (HPG), PetroVietnam Finance and Vietcombank (VCB) were all among the stocks plunging by 5 per cent.

Among the 10 leading shares by capitalisation, only real estate developer Vincom (VIC) and Sacombank (STB) bucked the trend, with VIC rising to its ceiling price and STB gaining 1.3 per cent. STB was the market's most-active share, with over 2.1 million traded.

The overall value of trades on the HCM City market yesterday plunged by 36 per cent to just VND787.6 billion (US$37.5 million), while volume eased by 2 per cent from the previous day to 46 million shares.

On the Ha Noi Stock Exchange, the HNX-Index lost nearly 2.3 per cent of its value to close at 58.42 points, with losers overwhelming gainers by 188-45.

However, the value of trades soared 54 per cent to VND322.9 billion ($15.4 million), while volume also spiked by nearly 52 per cent to 36.6 million shares.

Shares attractive to speculative investors, such as Kim Long Securities (KLS), VNDirect Securities (VND) and Bao Viet Securities (BVS), all dropped to their floor prices, even as KLS claimed the position as most-active share nationwide with nearly 4 million traded.

Foreign investors were net buyers on both bourses by a combined margin of VND52 billion ($2.5 million) after massive buys of VIC shares.

Chinese bank to lend $200m to BIDV

The State-run China Development Bank (CDB) will lend the Bank for Investment and Development of Viet Nam (BIDV) US$200 million to develop electricity, telecommunications, agriculture, transport, light industry and building material projects under a credit contract signed yesterday.

The money will be paid back to the Chinese bank over five years.

Speaking at the signing ceremony, director of the CDB's branch in Guangxi Bai Yingfu said he hoped co-operation between the two banks would become a model of working together for the two countries.

They also discussed co-operation opportunities in other sectors including houses for low-income earners and through the ASEAN-China Inter-banking Association.

A letter of commitment to this effect was signed in Ha Noi on Wednesday by the two banks' representatives in the presence of Vietnamese Vice President Nguyen Thi Doan and her visiting Chinese counterpart Xi Jinping.

This is the second preferential credit package which CDB has granted to BIDV following its $100 million loan last year.

In the context of limited credit, especially middle and long term loans, the loan has proved CDB's trust in BIDV in terms of its financial capacity and prestige. The loan is expected to supplement a considerable amount of funds for the Vietnamese bank to improve its capital structure.

BIDV is striving to become a multimodal financial-banking group that provides services meeting international standards.

By the end of last month, its total assets reached VND403 trillion ($19.2 billion), with mobilised capital at VND274 trillion ($13 billion), credit at VND268.2 trillion ($12.7 billion) and pre-tax profit at VND4.1 trillion ($195 million).

CDB was established in 1994 and has total assets valued at $600 billion. It is one of China's largest banks that focus on financing major infrastructure projects.

It has also funded projects in Russia, Brazil and Turkmenistan.

Nation urged to boost hi-tech investment
 
Viet Nam needs to pay more attention to attracting quality FDI resources as a foundation for development of hi-tech production and manufacturing.

The United Nations Industrial Development Organisation (UNIDO)’s managing director Wilfried Luetkenhorst made the statement at the launch ceremony of the Viet Nam Industrial Competitiveness Report 2011 held in Ha Noi yesterday.

Wilfried pointed out that industrial competitiveness was not or at least not entirely determined solely by a country’s factor endowment because it could make its industry vulnerable to competition, adding that competitiveness advantages could be created.

He said a good sign for Viet Nam was that it was one of the most improved countries in the Competitive Industrial Performance (CIP), ranking 58th in 2009 out of 118 countries and jumping 14 spots in only four years, thus becoming one of the most rapidly improving countries in the world.

The report showed that Viet Nam had overtaken strong competitors with a long industrialisation tradition such as Egypt, Morocco and Russia.

“This was a clear indication that Viet Nam was turning into a rising star on the global manufacturing scene and a threat to competitors around the world,” it said.

Manuel Albaladejo, an expert from the Research and Policy Advice Unit’s Department Polices and Strategic Research Branch said Viet Nam’s Manufacturing Value Added (MVA) growth had been impressive.

“Between 2000 and 2009, MVA skyrocketed from US$5.8 billion to $154 billion. MVA growth has gone hand in hand with economic growth. China, Cambodia and Viet Nam recorded the highest GDP growth rates for the period, implying that there is a strong link between industrialisation and economic development,” he said.

However, he said the country’s export growth should be interpreted with caution as Viet Nam’s trade pattern was heavily reliant on imports and domestic technological content was limited.

He added that the ability to shift production and export structures quickly to respond to changes in global demand was another important component of industrial competitiveness.

“Viet Nam has not quite benefited from the world’s demanded products despite improvements in the exports of dynamic products,” he said, adding that Viet Nam experienced trade deficits in 14 out of the 20 most dynamic products in the world.

The report highlighted that manufacturing growth was at the core of Viet Nam’s impressive economic performance over the last 20 years and that manufacturing must continue to play a major role in the future if Viet Nam was to sustain high growth rates.

It said the new strategy was needed to promote structural change and called for a new industrial policy that focuses on industrial transformation of strategic sectors that can support sustained growth and reap the benefits of technological change, innovation and learning.

While all manufacturing sectors were important, the report argued that a shift towards technology intensive sectors was needed to promote industrial deepening and value addition.

The report presented five key policy areas including reformulation of industrial strategies and policies, industrial diversification into high value-added products, human resources development for manufacturing, technology development and targeting quality FDI for manufacturing.

“The report would be deemed a useful document which supported policymakers in the formulation of industrial and trade policies that met the requirements of the realities of this new stage in Viet Nam, “ said Deputy Minister of Industry and Trade Le Duong Quang.

The report aimed to contribute to the existing policy drivers of industrial competitiveness, positioning Vietnamese industries in the international context, identifying industrial bottlenecks that could be addressed by policy and presenting specific recommendations for Vietnamese leaders.

The report argued that structural change towards certain strategic technology intensive sectors could speed up the industrialisation process, thus providing the right conditions for sustained growth.

The report was jointly carried out by MoIT and UNIDO in the context of the One UN funded programme “Building National Capacity in Industrial Diagnosis and Trade Competitiveness Analysis”.

Japan invests in local processing industry

More than 86 per cent of Japanese foreign direct investment (FDI) in Viet Nam is focused on processing and manufacturing, affirmed Foreign Investment Agency head Do Nhat Hoang, addressing a two-day conference in Tokyo on Monday.

He stressed that FDI matched the Vietnamese Government’s development trend.

To date, Japanese companies have invested in 1,623 FDI projects throughout the country. Of the total number, around 1,000 projects are focused on the processing and manufacturing industries, with a total registered capital of US$22.4 billion.

“The total amount of capital poured into the processing and manufacturing industries accounts for 86 per cent of Japan’s contribution,” Hoang added.

During the conference, based on local investment, he stressed that Viet Nam, with a clean investment environment, had become increasingly attractive to foreign investors, especially those from Japan.

In agreement, Japanese Foreign Investment Promotion Agency consultant Yoshifumi Tsujio said that Viet Nam had many advantages such as socio-economic stability, well-trained and young human resources as well as good policies in attracting investments.

To attract further investment, he suggested the country develop its support industry while reducing complicated administrative procedures.

Vietnamese Investment Consul to Japan Le Huu Quang Huy said that the country would continue its endeavour of attracting large, medium and small companies, especially from Japan, to high technology and environmentally friendly projects.

French grant to boost microcredit programmes

The French Development Agency is to grant 1 million euros (US$1.34 million) to help the State Bank develop a sustainable microfinance sector.

The agreement was signed yesterday between State Bank deputy governor Le Minh Hung and agency country director Jean-Marc Gravellini. The agreement offers to support the State Bank’s technical assistance project entitled “Improvement of the legal framework and strengthening of the supervision and management ability of the microfinance sector in Viet Nam”.

The project is expected to promote a financially and institutionally sustainable microfinance sector in order to broaden access to financial services for more Vietnamese.

An analysis of the legal and regulatory environment of microfinance in Viet Nam will be conducted and training offered for State Bank executives and concerned parties in the microfinance industry to improve the industry’s capacity.

With the new agreement, the agency’s total net commitment for public official development assistance in Viet Nam will come to around 1.07 billion euros ($1.4 billion).

Seafood exports to reel in $10 billion by 2020
 
The fisheries industry targets an export turnover of US$10 billion by 2020, transforming the country into one of largest seafood traders in the world, according to the Viet Nam Association of Seafood Exporters and Producers.

The optimistic target is largely based on the industry’s 15-20 per cent a year growth rate achieved over the past decade, export value having increased from $2 billion in 2002 to $6 billion this year.

To reach its target, the industry must overcome challenges such as a lack of raw material for processing while promoting product quality, food hygiene and safety, competitive ability and the development of the export market, the association said.

While Viet Nam is expected to export a total of 1.5 million tonnes of seafood this year, processors currently face a serious lack of raw material, forcing them to spend $500 million on imports to meet processing demand, the association said.

To solve the problem, the industry plans to better manage aquaculture in terms of food quality and hygiene alongside the application of modern technology to increase the capacity and quality of raw materials to reduce costs and develop value added export products.

Accordingly, processors would increase the import value of raw materials from $500 million in 2011 to $2.5-3 billion in 2020 to meet processing demands of 2.5 million tonnes a year by 2020.
Co-operation with foreign partners in the exploitation and storage of raw materials in foreign countries before shipment to Viet Nam for processing should be encouraged, the association said.

Regarding the development of the export market, the association proposed the Government implement additional trade promotion programmes in support of local seafood export products while reducing administrative procedures which increase costs.

The Ministry of Agriculture and Rural Development reported that Viet Nam would gain $6.2 billion in seafood export value this year, a sharp increase against $4.94 billion last year.

Phung Giang Hai, an expert from the Agriculture and Rural Development Strategy and Policy Institute, said that the fisheries industry would enjoy advantages in price and an increase in market demand, especially in the US and EU.

Key export products, including tra fish and shrimp, were expected to make $1.5 billion this year, he added.

In the first 11 months of 2011, the country experienced a year-on-year increase of 24.9 per cent to $5.6 billion.

Truong Dinh Hoe, VASEP general secretary, said that seafood exports saw an increase in value to large markets in the US, EU and Japan.

In the US, Viet Nam’s seafood export value increased 23.5 per cent to $1.49 billion compared with the same period last year, followed by the EU, Japan, South Korea, China and other ASEAN countries.

The Director General for Health and Consumer Protection at the European Commission has added 13 local seafood export processors to a list of enterprises licensed to trade with the EU, according to the Viet Nam Association of Seafood Exporters and Producers (VASEP).

Newly-licensed producers have been permitted to export their products to the EU since November 21, said Tran Bich Nga, deputy head of the National Agro Forestry Fisheries Quality Assurance Department (NAFIQAD).

Viet Nam currently has 392 seafood processors licensed to export to the EU, including the new firms, Nga confirmed.

So far, the EU has been one the largest markets for Vietnamese seafood products, accounting for 30 per cent of the total export value.

Copyright violations draw big fines

The Government issued Decree No 109/2011/ND-CP on December 2, amending Decree No 47/2009/ND-CP of May 2009 on administrative sanctions for violations of copyright and related rights. Under the new decree, reproducing a sound or video recording without permission of the copyright holder shall be subject to a fine of VND400-500 million (US$19,000-23,000) if the value of the recording is greater than VND500 million.

A sanction of VND500 million is applied for copying works, directly or indirectly copying a performance, copying the format of broadcast programme; appropriating rights to perform a work publicly, reproduce a work, distribute or import originals or copies of a work, rent out the originals or copies of a cinematographic work or computer programme, broadcast or rebroadcast a work. If it is impossible to estimate the value of the violated rights, violations shall be sanctioned a fine of VND20-80 million ($950-3,800).

Competence authorities may confiscate violating goods and carry out an appraisal of the value of goods as a basis for determining the level of fines. The new decree takes effect on January 2012.

New rules on consular certification

The Government issued Decree No 111/2011/ND-CP on December 5 regulating consular certification and legalisation of documents. A consular certification is the verification of a local seal, signature or title on papers and documents by Vietnamese competent authority so that they can be recognised in foreign countries. Consular legalisation is the verification of a foreign seal, signature or title on documents by Vietnamese competent authority so that they can be recognised and used in Viet Nam. Consular certification and legalisation may take place through offices of the Ministry of Foreign Affairs and its representative offices abroad.

The languages used for consular certification and legalisation are Vietnamese plus the official language of the country where the document are to be used, on the language is English or French. Certification or legalisation shall be completed within one working day of the receipt of proper dossiers. If the documents consist of more than 10 papers, the processing time shall not exceed five working days. The decree takes effect on February 2012.

Korean firms advise Vietnamese exporters

South Korean companies in the interior design sector met with their Vietnamese counterparts yesterday in HCM City to discuss measures on how to increase exports in the industry.

Co-organised by the ASEAN – KOREA Centre and Viet Nam Trade Promotion Agency, the seminar discussed effective design development.

A Ra Cho, CEO of Koon Design Co, said that, apart from price competition, current interior products needed more interesting designs to meet the diverse demands of customers.

“Unique designs will increase the added value of products, and help to give a competitive edge to companies,” she said.

To develop appropriate design strategies, companies should identify their targeted customers.

She said her company wanted to develop partnerships with Vietnamese companies or use local firms as outsourcers.

Hong Kyu Joo, CEO of Joo Design Co, said exporters should be aware of new trends in interior design by reading magazines and attending large exhibitions in the world, such as iSaloni, Home Furnishing Trade Show in Italy, IMM International Furnishings Fair in Germany and Maison & Objet Home Furnishing Trade Show in France.

He also recommended that they keep abreast of industry trends by reading internet sources.

Vietnamese businesses can attend two exhibitions in South Korea, Seoul Living Design Fair and KOFURN, to seek a more thorough understanding of customers’ tastes and demands.

Current trends in Korea are nature-inspired patterns and eco-friendly materials (with warm, natural colours), and a minimalist style with enhanced function and reduced decoration. Modern technology is mixed with nature-friendly materials to create novel designs.

Ki Bong Moon, the ASEAN-KOREA centre’s trade and investment manager, said that three years ago, Korea imported interior-design products mostly from China, but now has shifted attention to Viet Nam as a replacement for China because of its “advantages such as good quality of wood material, and a combination of manual and automated techniques for a unique identity of products.”

He said Vietnamese exporters should pay more attention to environmental regulations, origin of woods and consumer health-protection issues, adding that environmentally friendly products were favoured by consumers.

Vietnamese businesses should also build products that take into consideration the winter temperatures in Korea, which can drop below 15 Centrigrade and be damaging to wooden products.

Small-sized products are suitable for Korean consumers because most people live in spaces of about 100 sq.metres.

The ASEAN-KOREA Centre has held many meetings and seminars to strengthen cooperation between Korea and ASEAN countries, including Viet Nam, in the economic, cultural and tourism sector.

Besides the seminar, 13 Korean companies and Vietnamese firms met on the occasion to seek partners and cooperation opportunities.

Ta Hoang Linh, deputy head of the Viet Nam Trade Promotion Agency, said Vietnamese businesses should promote exports in Korea, a potential market with a great demand for interior products.

In the past five years, interior furniture has been one of the top 10 items with high export turnover in Viet Nam, achieving a turnover of US$3.5 billion in the first 11 months of this year.

Commodities demand to grow

The Ministry of Industry and Trade has released its forecasts on the demands for neccesary commodities next year.

Based on the anticipation of the Viet Nam Oil and Gas Group (PetroVietnam), the ministry said domestic petroleum demands next year would surge roughly 4-5 per cent against 2011.

Demands for liquified petroleum gas (LPG) were also expected to increase roughly 6-7 per cent to meet the country’s GDP growth rate of 5-7 per cent.

The ministry estimated paddy yields next year would be roughly 41.52 million tonnes while demand would stand at roughly 27.33 million tonnes.

“This will help the country set aside around 14.19 million tonnes of paddy or 7.2 million tonnes of rice for export next year,” the ministry said, adding that relevant agencies must scrutinise the domestic rice market to guide rice exports, especially at the end of this year and the first quarter of the next to ensure adequate supply for the domestic market.

The ministry said it would also work closely with the Ministry of Agriculture and Rural Development to supervise paddy cultivation and yields to avoid an imbalance between supply and demand.

Next year’s production of paper is anticipated to rise roughly 15 per cent against 2011 while demands are expected to rise roughly 10 per cent.

The ministry also expected the real estate market to gradually rebound from the second quarter of next year thanks to increased investment in the field in the wake of economic stability and a lending interest rate cut.

With a rise in steel demand of roughly 5.8 per cent forecast for the Asia-Pacific region next year, the Viet Nam Steel Association also expected the country’s steel output to surge 5-7 per cent to 6.83-6.95 million tonnes, roughly 660,000 tonnes from imports.

With an anticpated steel demand of 6.86 million tonnes for the next year, the steel industry would ensure a balance between demand and supply for the domestic market, the ministry said.

Conference promotes role of auditing

A conference held here yesterday by the Viet Nam Association of Certified Public Accountants and Australia’s Institute of Chartered Accountants aimed to boost the perception of enterprises towards the role of auditing in producing financial statements.

In the past few months, a number of listed firms on both of the nation’s stock exchanges have been fined for violating disclosure regulations. Some companies have also seen huge differences in financial figures before and after auditing.

“In Viet Nam and many other countries, financial statements are required to be audited,” said the association’s general secretary and standing vice president Bui Van Mai. “However, companies are not fully aware of the benefits of auditing,” Mai said. “Enterprises have to reveal internal documents and often feel they are being forced to be audited. But audit prevents the distortion of financial statements, assuring benefits to both shareholders and the companies themselves.”

Companies must be responsible for following accounting standards, he said, and Vietnamese accounting and auditing standards were close to international practice. Companies and auditors needed only to comply with current regulations to have qualified reports.

He urged enterprises to choose appropriate auditing firms.

“Major enterprises with complex financial situations need to hire senior auditors, while those with a small scale should hire smaller auditing firms which can offer lower costs,” Mai said. “But, above all, the most important factor is the experience of the auditors.”

Shareholders – who benefit directly from a company’s performance – should actively demand that management reveal audit results, Mai said.

Agriculture ministry turns eyes to developing cocoa industry
 
The Ministry of Agriculture and Rural Development has set its sights on bringing 35,000 hectares under cocoa farming and increasing exports of the bean and other products to US$60 million by 2015.

In a report, which it released at the International Cocoa Conference held yesterday in Ben Tre Province, the ministry said the country now grew cocoa on a total of 20,100ha. The annual output of cocoa beans was 240 tonnes while exports were worth $520,000, it said.

While 4,555ha are in the Central Highlands, by far the largest area under the crop is in the Cuu Long (Mekong) Delta – 12,115ha.

Delegates at the conference said with the area under cocoa in the country remaining tiny, the yield was low. Besides, the cocoa products were not of high quality since farmers considered it a subordinate crop after coconut, cashew, coffee, pepper, and fruits, they pointed out.

Only 2,300ha of cocoa was intensively cultivated, the report said.

Delegates recommended that modern technologies should be used for processing cocoa beans to achieve higher quality.

The ministry is seeking sustainable development of cocoa production and thus a gradual rather than sudden increase in the area under the crop.

It is developing plans for producing international standard cocoa in the country. Thus far in Viet Nam, only 541ha have been certified by UTZ Kapel as meeting international standards in cultivation, harvesting, and post-harvest activities.

There are 12 UTZ certified co-operatives in several provinces like Dak Nong, Dak Lak, Binh Phuoc, Dong Nai, Tien Giang, and Ben Tre.

The delta provinces of Tien Giang and Ben Tre are developing organic cocoa cultivation.

The ministry said demand for certified Vietnamese cocoa products was rather high among international buyers.

Cargill Viet Nam is the leading buyer of cocoa from farmers and processors in the Central Highlands and the delta.

Farmers to receive tips on fertiliser use

Viet Nam needs to use fertilisers more efficiently and effectively to reduce environmental pollution while boosting productivity, experts said at a conference in HCM City yesterday.

At present the efficiency was lower than 50 per cent, meaning that more than half the fertilisers used in fields remained in the soil, which could have serious fertility impacts in the future, said Truong Hop Tac of the Crop Production Department under the Ministry of Agriculture and Rural Development.

Le Quoc Phong, general director of Binh Dien Fertiliser Company, said results of studies already done on fertiliser use need to be applied to increase efficiency. He also called for increased application of Good Agricultural Practices (GAP) to reduce production costs and increase profits for farmers.

Inefficient use of fertilisers also necessitated greater imports because domestic production could not meet current demand, Tac said.

Viet Nam will need to import about 2.63 million tonnes of fertilisers next year. Domestic production of 7.25 million tonnes can only meet 73 per cent of the estimated demand for 9.88 million tonnes in 2012.

The country produced 5.64 million tonnes of fertilisers and imported 3.63 million tonnes this year, up 5.9 per cent and down 2 per cent over last year respectively, Tac said.

He said that despite strong fluctuations in the domestic fertiliser market this year, the industry still ensured supply at reasonable prices to farmers, greatly contributing to improved productivity of rice and other crops.

Tac said the country had to import 100 per cent of its SA (sulphate) and kali needs since it did not produce these two kinds of fertilisers.

It also lacks other kinds of fertilisers including nitrogenous fertilizer, DAP, kali, SA and sulphate, and it needs to keep importing the products.

For instance, it planned to import about 250,000 tonnes of urea fertiliser, 650,000 tonnes of DAP and 100,000 tonnes of NPK next year.

Nguyen Hac Thuy, permanent deputy chairman of the Viet Nam Fertiliser Association, said there were still many intermediate levels involved in the fertiliser distribution system, pushing up prices for farmers.

Businesses should make the direct distribution system more efficient in order to help farmers and bring greater stability to the domestic fertiliser market, Thuy said.

Tac said the Phu My Urea Fertiliser Plant has been asked to maintain a minimum of 70,000 tonnes of urea in stock to prevent supply shortages and price hikes.

Nguyen Tien Thoa, head of the Ministry of Finance’s Pricing Management Department said balancing supply and demand would be the most important factor in stabilising fertiliser prices in the domestic market.

Thoa suggested that relevant ministries co-operate with the Viet Nam Fertiliser Association to make more accurate forecasts of supply and demand, and closely monitor prices in local and international markets so that enterprises can be given sound advice about when and from where to import the needed fertilisers.

Relevant agencies and local authorities also needed to strengthen inspection of fertiliser companies’ registered selling prices to deal with trade fraud and speculative activity aimed at raising prices, he said.

More checks were also needed to prevent the sale of poor quality fertilisers, Thoa said.

Vo Van Quyen, deputy head of the Market Management Department under the Ministry of Industry and Trade (MoIT), said authorised agencies would strengthen inspections of fertiliser companies, especially small ones, at all stages, from production to distribution, and strictly punish those producing substandard or fake fertilisers.

He advised farmers to read carefully the information provided on products and purchase fertilisers only from reliable shops to avoid the use of fake products.

Phung Ha, head of the Chemicals Department under MoIT, said under the industry’s development plan, the country targeted the use of advanced technology to produce high quality fertilisers.

Thoa noted that the Government would gradually reduce current subsidies on coal and gas prices for fertiliser production to create a competitive market, so enterprises had to prepare to meet this challenge.

An oversupply situation of urea fertiliser could arise next year when the Ca Mau and Ninh Binh urea fertiliser plants become operational, raising output to 2.23 million tonnes, said Nguyen Hong Vinh, deputy general director of the PetroVietnam Fertiliser and Chemicals Corporation.

By then, urea production would not only meet local demand for agricultural production, the industry could export between 200,000-300,000 tonnes a year, he said.

Floods delay Delta rice planting

Farmers in the Cuu Long (Mekong) Delta, the country’s biggest rice granary, have planted the winter-spring rice crop late because of the slow retreat of floodwaters and persistent high tides, raising fears of a drought later during the crop and saltwater intrusion.

Le Van Banh, head of the Cuu Long Delta Rice Research Institute, said farmers had planted only around 500,000ha by December 10, or just a third of the planned area.

The Ministry of Agriculture and Rural Development envisages planting a total of 1.55 million hectares.

The schedule for planting seedlings was divided into two periods — November 5 to 30 and December 5 to 30 – with 700,000ha completed in the first.

The ministry had warned farmers that late planting could see a drought and intrusion of saline water at the end of the crop.

In An Giang, one of the provinces worst hit by floods, farmers have planted a mere 10,000ha of the planned 235,000ha.

Farmers in Dong Thap Province have planted 40,000ha, a fifth of the targeted area.

The two provinces are now expected to finish the planting by January 20, according to agricultural authorities there.

Local authorities in the worst-hit provinces — Dong Thap, An Giang and Long An — are providing farmers with financial support to pump floodwaters out of paddy fields to plant rice seedlings.

The Government has decided to provide assistance worth VND460 billion (US$21 million) to the delta to cope with the aftermath of the flooding, pump water out of fields, and help farmers buy rice seeds for the winter-spring crop.

IR 50404, a low-quality but high-yield rice variety that is popular in the delta, has or will be planted on around 20 per cent of the area, according to the institute.

In the remaining area, farmers will grow high-quality varieties for exports.

This year the delta’s paddy output reached 23 million tonnes, 1.5 million tonnes more than last year and accounting for 55 per cent of the country’s total output, according to figures from the local agriculture departments.

Forum highlights green economy in Vietnam

Green economy is closely associated with sustainable development, helping to ensure social security, protect the environment, and improve the efficiency of energy use, said Deputy Prime Minister Nguyen Thien Nhan.
 
The Deputy PM made the affirmation at a forum in Hanoi on December 13 to discuss green economy and sustainable development in Vietnam.

He said creating a green economy is to generate jobs, sustain economic growth, reduce environmental pollution, and minimize the effects of global warning and exhausted natural resources.

It is necessary to formulate a favourable legal environment for developing such an economic development model in Vietnam, said Mr Nhan.

UNDP Country Director in Vietnam Setsuko Yamazak, said that a green growth strategy will enable Vietnam to mobilize financial resources, as well as technological renovations, from public and private sectors especially within the framework of an international agreement on climate change.

The UNDP in Vietnam is willing to support the country in improving its quality of growth, restructuring its economy, and tackling environmental pollution, she said.

Delegates also affirmed the need to turn to a green economy and introduced practical experiences in developing such a green economy in the world. They also pointed out difficulties and solutions for policies so that Vietnam can build a green economy in line with sustainable development.

They said that strengthening international cooperation in climate change will help improve renewable energy and energy efficiency, and reduce water and air pollution. Green economy will help protect forests and increase agricultural productivity. It will also offer Vietnam numerous opportunities to develop highly - qualified human resources.

Vietnam is currently taking measures to restructure its economy and learn from international experiences in developing a green economy to devise proper orientations and policies to ensure sustainable development.

Australia willing to strengthen ties with Vietnam

The Australian government wants to strengthen cooperation and help Vietnam with clean energy and exploitation of natural resources and minerals, says Australian Trade Minister, Craig Emerson.

Mr Emerson emphasised this while co-chairing the 10th Australia-Vietnam Joint Trade and Economic Cooperation Committee (JTECC) meeting in Hanoi on December 13.

He highlighted Vietnam’s achievements and said that it is one of a core group of countries in the Asian region with dynamic growth, rigorous domestic reform programs, a burgeoning middle class, and a developing demand for Australian goods and services.

The year-on-year 10 percent increase in two-way trade between Australia and Vietnam is a firm foundation for the development of cooperation in fields of mutual concern, he stressed.

He also said the Australian government considers Vietnam one of the seven potential nations for investment.

Minister of Planning and Investment Bui Quang Vinh, who was also co-chairman of the meeting, said he is delighted at the development of Vietnam-Australia relations.

He thanked Australia for its non-refundable aid to Vietnam, which has reached AU$139 million, saying that Vietnam has always made good use of the assistance.  

During the meeting, both sides reviewed their bilateral cooperation and discussed measures to boost their relationship in education, training, infrastructure development, the environment, natural resources and energy.

They also worked out ways to increase the roles and benefits of Vietnam and Australia in regional and global cooperation, especially under their Comprehensive Partnership, signed in 2009.

Australia is now Vietnam’s 20th biggest foreign investor with total registered capital of US$1.29 billion.

In the first nine months of 2011, two-way trade reached US$3.13 billion, up 21.96 percent against 2010, with Vietnam enjoying trade surplus of US$430 million.

Vietnam’s industrial competitiveness sees a high jump

Vietnam has made strides in improving its industrial competitiveness, jumping 14 notches in four years, according to a report released in Hanoi on December 13.

The Vietnam Industrial Competitiveness Report 2011 considers industry a core factor in the nation’s economic growth, pointing out that promoting production and manufacturing plays an important role in generating jobs and income.

The Industrial Competitiveness capacity is not, or at least not completely, dependent on a nation’s reserve of natural resources, said Wilfried Luetkenhorst, Managing Director of the United Nations Industrial Development Organization (UNIDO), adding that any competitive advantages can be created.

Mr Luetkenhorst recommended that Vietnam focus on fields with higher technological added value.

At the launch ceremony, Minister of Industry and Trade Vu Huy Hoang said the report will help policy makers formulate industry and trade policies to meet the nation’s requirements in its industrial development. He said the report also recommends some useful policies for Vietnam.

Deputy Minister of Industry and Trade Le Duong Quang suggested Vietnam take the opportunity to overcome the challenges of global integration by analyzing and assessing its industrial competitiveness.

The analysis lays a firm foundation for policy makers to address core sectors and improve business competitive edge, he said.

HCMC sets up trade, service ties with southern provinces

HCMC and 20 southern provinces will join hands in diverse activities relating to trade and services for the 2011-2015 period, according to cooperation agreements signed in the city on Monday.

The city’s Department of Industry and Trade signed separate agreements with counterparts from 13 Mekong Delta provinces and seven southeast provinces under the witness of Deputy Prime Minister Vu Van Ninh.

Accordingly, the localities will organize goods exchange activities, jointly regulate supply and demand on the market, and create and exploit material sources. Besides, related provinces and cities will join forces in consumer protection, market inspection and control, fighting illegal products and ensuring food safety.

Vice Chairwoman Nguyen Thi Hong of the HCMC government said the comprehensive cooperation in trade and services was aimed to tap the advantages of southern localities and efficiently utilize the region’s potentials. Moreover, the cooperation will facilitate investment in trade and service projects.

Speaking at the signing ceremony, Deputy Prime Minister Vu Van Ninh urged related parties to bring out policies and mechanisms to facilitate the cooperation between enterprises and localities. Moreover, regional planning should be attached to economic sector planning, creating the regional and national value chains.  

In related development, HCMC-based Saigon Trading Group (Satra) and Vissan Company on Monday signed a cooperation agreement in animal husbandry and farm produce consumption with Dong Nai Food Industrial Corporation (Dofico) and France-Vietnam Joint Stock Company (Proconco) in Dong Nai.

In addition, Saigon Union of Trading Co-operatives, better known as Saigon Co.op, also cut a deal with the co-operative Anh Dao and the farm Phong Thuy in Lam Dong Province to cooperate in safe vegetable production and consumption.