S Korean firm to make antennas in Ha Nam

ACE Technology Group from South Korea will build a factory producing wireless antennas and filters used for smartphones in the northern province of Ha Nam.

The factory will have an initial investment of US$70 million and use 3,000 employees, ultimately increasing to $100 million and 5,000 workers.

Spanning a 12.5ha site in the province's Dong Van II Industrial Zone, construction is expected to begin in July.

Da Nang business show draws international firms

More than 300 businesses from Japan, China, Korea, Thailand, Singapore, Malaysia, Indonesia, the Philippines and Viet Nam will take part in the Viet Build Exhibition at the City's Exhibition Centre from today until Sunday.

The deputy head of the Department of Trade and Industry of the city, Lu Bang, revealed this at a press conference on Monday.

He said businesses would display products in 600 pavilions and introduce a variety of products used in the construction, interior decoration and furniture.

Foreigners look to Long An for investment projects

Many enterprises from Japan, mainland China, Singapore and Taiwan have arrived in the Mekong Delta province of Long An to seek investment opportunities.

During a meeting with Long An People's Committee on Monday, the companies were introduced to the provincial situation on socio-economic development, its investment environment and commitment to create favorable conditions for investors.

The province has to date lured 600 projects from 34 countries and territories with a total registered capital of $3.6 billion.

VPBank offers low-cost loans until September

The Viet Nam Prosperity Commercial Bank (VPBank) has launched the preferential loans up to VND5 trillion (more than $238 million) to small-and-medium-sized enterprises nationwide.

The programme, which will end in September, will provide a preferential interest rate of two per cent less than the normal rate.

Fung Kai Jin, the bank's deputy general director, said the bank considered the SMEs to be an important segment for their long term development strategy.

Dong Nai sets footwear target at $2.5b

The southern province of Dong Nai has set a target of earning $2.5 billion from footwear exports in 2015, according to the provincial Department of Industry and Trade.

To reach the goal, the province would organise regular meetings with footwear producers to help solve their difficulties as well as create opportunities for them to participate in trade fairs and exhibitions to seek new trade partners and new export outlets, said Le Van Danh, the department's director.

In the first quarter of this year, footwear surpassed other commodities in terms of export turnover, earning about $545 million, up 13 per cent year-on-year. Major markets included the US, Britain, Belgium, Poland and Japan.

Banks to finance EVN's power project

Viet Nam Electricity, the largest electricity company in Viet Nam, has reach an understanding with Vietinbank, Vietcombank and BIDV on a commercial credit agreement worth of VND4,500 billion (US$210 million).

The credit agreement was struck for the Duyen Hai 3 Extension Thermal Power Plant in the southern Tra Vinh Province.

Once completed, it will be among the largest coal thermal power plants in the South. The project is part of the national power development plan for the 2011 to 2020 period and was approved by Prime Minister.

The thermal power plant is designed to have a production capacity of 3.9 billion killowatt hours a year and has machines with a capacity for 660 megawatts.

The plant operates on a modern burning technology, which is suitable for Viet Nam's Anthracite coal and meets the country's environment protection requirements.

Forum discusses ways to improve business climate

Measures to improve Viet Nam's business environment during international integration is the main focus at the 2015 Spring Economic Forum that opened in the central province of Nghe An yesterday.

The two-day meeting will also review the results of the 2014 socio-economic development plan and discuss the implementation of socio-economic plans during 2015.

Opening the event, chairman of the National Assembly's economic committee, Nguyen Van Giau, asked experts to assess the feasibility of implementing the 2015 socio-economic targets approved by the National Assembly.

He said the targets concentrated on removing difficulties in production and business, restructuring the economy and improving competitiveness, efficiency and capacity.

Giau asked the forum to evaluate competitiveness through clear indexes, provide solutions for agricultural restructuring and production connectivity, discuss public debts, Official Development Assistance, imports and exports, employment, healthcare and education.

Another important issue to be discussed is the country's global economic integration, particularly the impact of free-trade agreements and globalisation on the country's economy, he said.

Director of the Viet Nam Institute of Economics, Tran Dinh Thien, said that Viet Nam recorded a growth rate of 5.98 per cent in 2014, 0.56 per cent higher than in 2013.

The 2014 growth occurred as the economy continued to show signs of recovery. However, the rate was low and growth did not surpass six per cent much lower than the average during the 1990-2010 period, he said.

Viet Nam's export markets were diversified, but the import markets were concentrated. Viet Nam exports products to many countries, including the US, the EU, China and Japan, but imports up to 29 per cent of its products from China.

The 2014 growth rate success was attributed to several factors, particularly the Government's pro-active implementation of many policies to stabilise the macro economy, promote regulatory reforms and actively integrate into the regional and global economy, he said.

Viet Nam posted a growth rate of 6.03 per cent in the first quarter of this year.

However, participants noted that Viet Nam still faced many challenges, including weak competitiveness among local businesses and low labour productivity. They said the skills of workers still lagged behind other countries in the region.

Former director of the National Centre for Socio-Economic Information and Forecast Le Dinh An stressed that the economy showed signs of recovery, but remained unstable. He said there was still a high risk for the economy to return to low growth.

He pointed out that the real estate market was still quiet; the economy's competitiveness was low; economic restructuring programmes were implemented slowly; and that there was slow investment in costly infrastructure.

Economic experts proposed measures to deal with these challenges, including continuing the tightened monetary policy; completing legal and public investment mechanisms; improving human resources; and improving the business and investment environment.

It was also essential to implement Government measures, such as stabilising the marcro-economy, keeping inflation under control, creating conditions for production and trade activities; pushing economic restructure, increase export and develop the market, they said.

Former director of the national information centre, An ,said it was necessary to initially implement measures such as keeping close watch over the change of the price of the US dollar in the market, focusing on developing agriculture to increase the value of farm produce and speeding up the equitisation process of State-owned enterprises.

During the second-day discussion of the forum today, economic experts and scientists are expected to discuss orientations to improve the business and investment environment.

They will provide in-depth evaluations of specific suggested standards for the business climate, in connection with the implementation of the 2013 Constitution and newly issued laws, including the Law on Tendering, Law on Investment and the Enterprise Law.

Representatives from the business community, the association of small and medium-sized enterprises and the Viet Nam Real Estate Association will analyse the evolution of the business environment in Viet Nam, and discuss the reforms required from their perspective.

The event was organised by the National Assembly's economic committee, the Viet Nam Academy of Social Sciences, the Viet Nam Chamber of Commerce and Industry and the Central Institute for Economic Management.

Agro-fisheries firms told to tap Finland

Vietnamese firms were instructed to export agro-fishery products to Finnish and North European markets at a conference in HCM City on Monday.

According to Tran Viet Cuong, Deputy Head of the Vietnam Sanitary and Phytosanitary Notification Authority under the Ministry of Agriculture and Rural Development, the agro-fishery sector's export value depends more on volume than price.

The majority of Vietnamese agricultural enterprises are small. Under-10-employee firms account for 44 per cent of the industry while over-300-employee businesses constitute only 3.47 per cent, Cuong noted, adding that 82 per cent of companies have less than VND20 billion (US$926,000) in capital.

He said that push to increase Vietnamese agro-fishery exports to Finland and Northern Europe, supported by the Fund for Local Cooperation through the Finnish Embassy in Viet Nam, would play an important role in expanding the sector's market.

The project would give technical assistance and market information to Vietnamese enterprises, enabling them to reach their partners more easily, he said.

Agro-fishery exporters across the nation would benefit from the project, especially those in Ha Noi, HCM City and Mekong Delta localities, he said.

During the conference, Vietnamese and foreign experts provided businesses with basic information and country specific guidelines for exporting aquatic products and fruit to the target markets.

Vietnamese firms were offered other forms of support, such as the Finnpartnership Business Connectivity Programme, which will sponsor Vietnamese firms trying to expand operations and develop the capacity to meet international commercial practice requirements.

Trade between Viet Nam and Finland was over $260 million last year, a 15 per cent rise from the previous year, with Vietnamese exports valuing at more than $100 million.

Garments and textiles, computers, electronic products and spare parts, machineries, plastic products, footwear and leather were major earners in Viet Nam last year.

The country imported electronic products and spare parts, machineries, equipment, paper, chemicals and steel from Finland.

In March of this year, Finland had 10 ongoing projects in Viet Nam with a total investment of $235 million, making it the 29th largest investor in Viet Nam.

VND100m homes a low-income dream

Affordable housing that was recently launched in the southern Binh Duong Province at a price of about VND100 million (US$4,630) per unit has made low-income earners and workers more hopeful.

At the beginning of this month, Becamex IDC launched nearly 5,000 apartments, with a total area of 30 square metres each in the Hoa Loi social housing project, which have been priced between VND100-150 million ($4,630 - 6,950) per unit.

Buyers could pay 20 per cent of the total value of the apartment in advance and get loans from the Government's VND30 trillion ($1.38 billion) support package for the property market and pay the remainder in instalments every month.

Nguyen Thi Lan, a worker in Binh Duong Province, who is from the Nghe An Province, has bought an apartment in the Hoa Loi housing project. She said the monthly instalment was only equivalent to her rent of VND1.4 million ($648) per month for seven years. "I am happy now that my family has a home of our own," Lan said.

Meanwhile, Nguyen Thanh Truc, chief of the secretariat of the provincial People's Committee, said there were a sizeable number of workers in the province, who had expressed the need for accommodation. Many social housing projects were implemented in the province with the aim to provide low-income workers with a stable accommodation and help them settle down and improve their living standard.

As part of the province's social housing project, Becamex would develop 64,700 units for low-income earners in the province.

If successful, Binh Duong's social housing projects might set an example for other provinces in the country, especially Ha Noi and HCM City, where there is huge demand of homes for low-income earners, experts said, adding that however, it would be difficult to match these prices in big cities.

According to Le Hoang Chau, president of the HCM City Real Estate Association, the cost for developing a land fund for social housing projects, which accounts for a large portion of the construction costs, was much lower in Binh Duong Province than in Ha Noi and HCM City.

Binh Duong Province had created a land fund totalling about 200 hectares with a basic infrastructure system to develop the social housing projects.

Nguyen Van Duc, the association's deputy president, said higher costs for site clearance in Ha Noi and HCM City had pushed up the prices of social apartments, which currently ranged between VND8-15 million ($372-714) per square metre.

Duc said the land fund was the first factor to influence the affordability of apartments.

Experts said land in the cities' outer districts had lower prices, which would be suitable for developing a land fund for social housing projects. However, this area must be equipped with basic social infrastructure, such as schools, stores, banks and hospitals.

According to expert Dang Hung Vo, small-sized apartments, if placed under good management that ensured basic infrastructure requirements, such as parking space, parks, security and fire prevention, would not turn into slums, but help enhance the living standards of low-income earners.

Experts estimated that the prices for similar apartments would be around VND200- 300 million ($9,523-13.953) in Ha Noi and HCM City, owing to higher construction costs.

In the latest draft decree on social housing development and investment issued by the Ministry of Construction, the minimum area for social apartments has to be 25sq.m.

Vingroup enters exhibition, fair industry

Property developer Vingroup has contributed nearly VND1.5 trillion to become a strategic stakeholder in Viet Nam Exhibition and Fair Centre JSC.

This followed its acquisition of an 89.42 per cent stake in the Viet Nam Exhibition and Fair Centre One Member Co. Ltd. (VEFAC).

According to a decision made by Vingroup's board of directors on April 17, the group contributed VND1.489 trillion (US$68.9 million) to the charter capital of the Viet Nam Exhibition and Fair Centre JSC.

Established in 1960 as a State-owned firm, VEFAC's annual after-tax profits have reportedly ranged between VND3 billion and VND6.2 billion (between $142,860 and $295,240) over the last three years. The ratio of profit on net revenue varied from 1.6 per cent to 9 per cent.

Earlier this year, Prime Minister Nguyen Tan Dung had instructed the relevant ministries and agencies to execute a project for constructing the National Exhibition and Fair Centre on the basis of equitizing VEFAC.

As per the order, an international standard exhibition and fair centre will be built over an area of about 125.79 hectares (ha) on the Nhat Tan-Noi Bai axis in western Ha Noi and will contribute to the city's development.

In addition, a new shopping mall and office building will be constructed at 148 Giang Vo Street, which will be spread over an area of 6.838ha.

The Viet Nam Exhibition and Fair Centre JSC's first shareholders meeting is scheduled to be held in Ha Noi today.

Securities firms share risk management do's and don'ts

Local securities companies exchanged their risk management experiences in the securities industry at a seminar held in the capital city yesterday.

The seminar, which was co-organized by the Ha Noi Stock Exchange and the Techcom Securities Company, was aimed at improving risk management, considering it is crucial for business survival, especially when Viet Nam's stock market has developed better in the past years.

Nguyen Van Dung, HNX's deputy director, said the State Securities Commission had recently issued guidelines for local brokers on risk management. However, he added it was not easy to implement the management as many firms had not paid enough attention to the matter.

Lim Ming Wee, 56, director of the E-securities project at the Techcom Securities Company, shared his own risk management experience after working in top positions in Singapore, Hong Kong, Thailand and Japan.

He divided the management levels from international organizations, such as IOSCO, IMF, World Bank, down to the national company level.

At securities firms, he said, there were a lot of potential risks present, especially in Viet Nam, where the competition in the market was growing.

Wee said market volatility demanded greater vigilance for managing risk effectively, adding that firms should be more cautious while watching and managing risks when the market was growing faster with more competitors.

The firms must also pay attention to the speed of the market reaction to events, as well as the system and process failures and fraud risks.

Furthermore, Wee said it was very dangerous to have incomplete or incorrect implementation of laws.

Thus, firms should build the market both in the depth and to a certain level of sophistication.

Clear authorisation limits and procedures, clear identification of responsibilities in the firms would also boost management quality. With well-trained staff, the firms could be informed about potential risks before any special team recognize it.

Firms should also exercise their own disaster plan, which would be used to improve them.

Wee said if the attendees could follow all these suggestions, they would definitely have a good platform to raise capital and ramp up their profile and attract investors with investing opportunities in the capital markets.

Deputy PM: Agriculture essential for national development strategy

Developing agriculture and ensuring food security should play a central role in the national development strategy of any country, Deputy Prime Minister Nguyen Xuan Phuc has said.

Speaking at a debate session in the framework of the World Economic Forum (WEF) on East Asia 2015 in Jakarta on April 21 which focused on ways to improve food security in Asia in the future, Deputy PM Phuc stressed that governments around the world need to make strong their commitments to agricultural development.

He stated that Vietnam continually works hard to accelerate its agricultural restructuring in order to build an environmentally friendly sector creating highly competitive products.

The Vietnamese official underlined the need to design appropriate policies to mobilise investment for agriculture and to seek new markets for farm products exports.

According to Deputy PM Phuc, it is necessary to promote cooperation among nations in ensuring food security and agriculture development, as well as in sustainably managing and exploiting water sources, especially in international rivers in the region.

Phuc also briefed participants on Vietnam’s agricultural orientations, saying that agriculture holds a strategic position in the country’s industrialisation and modernisation process and that Vietnam has carried out a number of reforms in the field.

The speaker affirmed that Vietnam backs and proactively implements agricultural initiatives, adding that the signing of free trade agreements with foreign countries will open new markets for Vietnamese farm product exports and create new opportunities for enterprises to invest in the field.

Taking the occasion, the Vietnamese official called on international investors to funnel their capital into agriculture in Vietnam.

In 2014, Vietnam shipped over 6.5 million tonnes of rice and large volumes of another agro-forest-aquacultural products to foreign markets, raking in 31 billion USD.

Exhibition of Food & Hotel Vietnam comes to HCM City

The 8 th edition of Food & Hotel Vietnam is underway at the Saigon Exhibition & Convention Centre (SECC) in Ho Chi Minh City.

The 8,800-square-metre exhibition features 353 domestic and foreign businesses, 252 of which from 31 countries and territories worldwide including Australia, Singapore, the United Kingdom, the United States, Taiwan, Malaysia, the Republic of Korea, Hong Kong, Italy, Japan and Spain.

A wide range of food and drinks are on display together with hospitality equipment and supplies for hotels and restaurants.

Deputy Director of the Vietnam Chamber of Commerce and Industry (VCCI) Tran Viet Dung said that the presence of so many exhibitors at the event reflected the strong development of the hospitality sector in Vietnam and the region.

The exhibition has offered a platform for local enterprises to learn about the latest technologies and solutions from all over the world and seek business opportunities and new markets, he added.

Several seminars will be organised on the sidelines of the event, including “Food safety in commercial kitchens: An ISO 22000:2005 Approach for practitioners” and “Itinerary for franchise” alongside a culinary challenge and a latte art competition.

Launched by the Singapore Exhibition Services associated with VCCI Exhibition Service on April 21, the event will run through April 24.

Amway leads in direct selling in Vietnam in 2014

Amway Vietnam ranked first among direct selling companies in Vietnam in 2014, in terms of revenue, number of participants, commissions and other economic benefits offered for sellers, according to a recent report released by the Vietnam Competition Authority under the Ministry of Industry and Trade.

According to the report, there are a total of 105 direct selling companies in Vietnam, employing 600,000 people, with the total revenue of VND6 trillion ($282 million) and paying VND520 billion (US$24.4 million) in tax.

Amway Vietnam, a subsidiary of American direct selling company Amway, sells health and beauty products as well as some household goods. It has been present in Vietnam since 2008.

Amway has its headquarter and one factory located in the Amata Industrial Park in Bien Hoa city, in the southern province of Dong Nai, as well as branches in Ho Chi Minh City, Hanoi and five other provinces. The company owns two stores and training centres in Ho Chi Minh City and Hanoi.

In March last year Amway began construction of its US$25 million second plant in the Vietnam-Singapore Industrial Park II in the southern province of Binh Duong . The new plant has an area of 5.4 hectares, seven times larger than the first one, and the capacity of 23.2 million products worth about US$200 million per year.

In 2014 the government issued a decree and a circular on direct selling, stipulating that all agents participating in such activity must hold certification by the Vietnam Competition Authority.

The decree is praised by companies as promoting professional conduct and helping to increase buyers’ trust by enabling them to distinguish lawful direct selling from illegal pyramid schemes.

Vietnamese investors learn about RoK’s Pyeongtaek port

Vietnamese investors gained insight into Pyeongtaek port, an entrepot linked with other international seaports, in the Republic of Korea (RoK) during a workshop in Hanoi on April 21.

Lim Song-hack, Director General of Pyeongtaek Regional Maritime Affairs and Fisheries Office, said the newly-operational Pyeongtaek port handled a record 100 tonnes of cargo last year and has the potential to become one of the most dynamic and developed seaports in the RoK.

Since Vietnam and the RoK concluded negotiations on a free trade agreement, the event enabled Vietnamese firms to obtain more information on business in maritime transport and logistics.

The RoK is currently the largest investor in Vietnam with 4,140 projects worth 37.7 billion USD. Trade soared nearly 55 times from 0.5 billion USD in 1992 to 30 billion USD in late 2014, and is expected to hit 70 billion USD by 2020, said Vice President of the Vietnam Chamber of Commerce and Industry (VCCI) Doan Duy Khuong.

Khuong said there remains significant room for mutual growth in diverse fields, but especially in transport and logistics.

The workshop was co-hosted by the VCCI, the Vietnam Maritime Administration, and the Pyeongtaek Regional Maritime Affairs and Fisheries Office.

Quang Nam, RoK’s Gyeongsangnam cooperate to develop ginseng

Hamyang district in the Republic of Korea (RoK) province of Gyeosangnam will help Nam Tra My district in central Quang Nam province to develop Ngoc Linh ginseng, a rare and valuable long-standing plant, as stipulated in a Memorandum of Understanding signed on April 21.

According to the MoU, beyond making efforts to support each other in agriculture, tourism and culture, two sides will share experience in ginseng cultivation and processing techniques.

Ho Quang Buu, Chairman of the Nam Tra My district People’s Committee, highlighted that collaborating with Hamyang and learning from its expertise in growing and processing pharmaceutical materials and particularly mountainous ginseng will open opportunities for Ngoc Linh ginseng to roll into foreign markets.

Between now and 2020, Quang Nam province plans to grow nearly a million ginseng plants across 100 hectares in Nam Tra My district. As part of long-term plans, the province has zoned off a 19,000 hectare plantation within seven communes in the district.

Hamyang district, a clean town with 15 mountains exceeding 1,000 metres in height and rich soil, has tapped its potential to develop mountainous ginseng. The locality has organised numerous activities during the annual Wild Ginseng Festival to popularise the local products to international friends.

EU agreements a chance to eradicate illegal timber trade

Final negotiations to complete a Forest Law Enforcement, Governance and Trade (FLEGT) and Voluntary Partnership Agreement (VPA) between the European Union (EU) and Vietnam is expected to be completed by late 2015.

Enactment of the agreements is expected to offer additional opportunities for Vietnam timber exports, while stopping the sale of illegal timber.

The agreements aim to ensure the legality of timber and timber products entering 28 countries in the EU market, while helping to maintain and expand the export of timber and timber products from Vietnamese enterprises, which is subject to changing EU market requirements as of March 2013.

Nguyen Tuong Van, Director of the Steering Committee of VPA/FLEGT, said that following negotiations, she expected that timber exports to the EU market would considerably increase, reported Thoi Bao Tai Chinh online.

Van added that the great challenges in the negotiations included following the TLAS - Timber Legality Assurance System to ensure Vietnamese timber products meet international standards on the origin of timber.

She said that apart from efforts made by authorized bodies, timber processors and exporters needed to join this "play-ground" by focusing on their product quality and conducting business in compliance with the law.

They also needed to have certain knowledge about VPA and to consider it to be a "visa" for Vietnamese timber products to enter the EU market, while understanding that this is an opportunity to eliminate illegal timber trading and unregulated timber companies from doing business in Vietnam.

According to a report on the negotiations between Vietnam and the EU of the Ministry of Agriculture and Rural Development, Vietnam now has more than 3,500 companies in the timber business. Of note, timber volume and exporting of timber products to the EU accounted for 20 percent of the total volume of all exports from Vietnam.

Last year, the country earned 6.2 billion USD from the export of wood and wood products, a year-on-year increase of 11.5 percent compared with 5.4 billion USD in 2013, and ranked second among countries exporting furniture in Asia. According to the forecast, this year wood and timber product exports are to grow by 15 percent, reaching at least 7.2 billion USD.

Over the years, the export of timber has seen significant improvements in its quality, especially as domestic enterprises have increased their market share to match those of FDI enterprises, according to the vice chairman of the Handicrafts and Wood Industry Association of Ho Chi Minh City (Hawa), Huynh Van Hanh.

He noted that wood and timber exporters still faced difficult times, especially due to "barriers" from strict requirements in major markets, including the EU.

Van said under the State's regulation on forest management, in compliance with FLEGT, it is required that any timber products exported to the EU must receive chain of custody certification. Further, no illegal timber products or unverified products are allowed to be added to exported timber products.

As the fact that local raw materials can now meet about 40 to 50 percent of input materials for export processing, while the remainder still relies on imported raw materials. Therefore, local processors have difficulties in determining whether imported timber is reliable, she said.

According to Van, most of the wood processing enterprises in Vietnam are small and medium-sized enterprises. No record of wood procurement is kept by processors, as they just hand over hand written notes to verify their purchases. This has been recognized as a major problem that must be quickly solved.

Nguyen Ton Quyen, General Secretary of the Vietnam Timber and Forest Products Association (Vietfores), has said that the General Administration of Customs statistics showed that, last year, Vietnam imported raw wood materials valued at 1.639 billion USD. Clearly, as the importation of raw materials and shipping costs were increasing, Vietnamese wood processing companies will find it difficult to compete with companies, such as those in China or Malaysia.

Housing stimulus disbursement stagnates

The disbursement of the 30-trillion VND (1.38 billion USD) housing stimulus package has been stagnant, despite the increase in the number of successful transactions in the real estate market.

Economists and estate businesses said the market had seen clear improvements. The number of successful transactions in Hanoi in the first quarter of the year rose by three times over the same period last year, reaching 4,250. Most of the transactions involved apartments with small and medium areas of 70sq.m to 90sq.m.

Deputy Minister of Construction Nguyen Tran Nam said the estate market this year would see more transactions in several segments such as land, apartments and offices. Apartments, especially, of less than 1 billion VND (46,300 USD) that are suitable for low-income earners will sell well.

Experts said it was time for the package to support the market and reduce the housing inventory. However, the package cannot be disbursed fully by June 1, 2016 as the Government's set target.

The Vietnam Real Estate Association said the disbursement was slow for social and cheap commercial housing projects, despite an increasing number of transactions and reducing inventory.

About 6.2 trillion VND (287 million USD) or 20 percent of the package has been disbursed so far.

Chairman of the Ho Chi Minh City Real Estate Association Le Hoang Chau said the disbursement was too low, though 15 banks were contributing to the package.

Chau said regulations stipulated that the total income of eligible low-income earners should be less than 9 million VND (416.7 USD) a month.

However, several commercial banks did not accept the regulation as they believed that the income would not be enough to repay debts.

Nguyen The Hien from Bac Ninh province is eligible to get a loan from the package. However, several banks rejected his application because they felt he would not be able to repay the loan with his low income.

"I have to consider taking a commercial loan that has a higher interest rate and financial risks. I have paid 30 percent of the amount for my apartment. If I'm unable to get a loan, I'll have to sell the apartment," Hien said.

He suggested the loan duration should be extended from the current 10 to15 years to 20 to 25 years to reduce the pressure on low-income earners.

A bank representative said the recent regulation promulgated by the construction ministry in March caused the package disbursement to stagnate. Such low incomes would not be able to cover the debt after deducting the daily expenditure.

"The loan comes from people's deposits in banks. That is the reason why banks have been careful in giving loans to avoid bad debts in the future," he said.

Nguyen Hoang Minh, Deputy Director of the State Bank of Vietnam's branch in HCM City, said they had sent documents to 15 commercial banks to collect ideas that would then be submitted to the central bank for consideration.

Market for canned fruit products neglected

The market for canned fruit products would present an opportunity to boost Vietnamese agricultural product consumption but domestic producers have long neglected this market due to various reasons.

Surveys conducted at supermarkets in Hanoi including Big C, Co.opmart, Lotte and Fivimart showed that canned fruit products are sold for about 40,000 VND to 50,000 VND (1.9-2.4 USD) per 500-gram can.

Fivimart’s representative Vu Thi Hau said the low purchase rate is due to Vietnam’s abundant fruit supply and consumer preference of fresh fruit over canned options, coupled with hesitations to purchase products with preservatives over their potential negative health effects.

According to an online seminar on the export of Vietnamese agricultural products held by the Ministry of Industry and Trade (MoIT) last week, reasons for slowing consumption of canned products in domestic market are unstable supply depending on seasons, undiversified and low-quality products not meeting export standards and insufficient capital.

Deputy Director of Import-Export Department under the MoIT Phan Thi Dieu Ha said international markets including Europe, Russia and Republic of Korea have high demand for canned fruit products but a limited number of Vietnamese products meet import requirements. She recommended enterprises employ advanced processing technologies to meet international standards.

The government should introduce preferential policies for enterprises such as credit loans to assist them in expanding their business and reducing price while enterprises should intensify promotion activities to improve consumption and support the campaign “Vietnamese give priority to use Vietnam’s goods” she added.

Vietnam eyes Morocco as new potential market

Morocco has become a new potential market for Vietnam as bilateral trade between the two countries reached 156.3 million USD last year, with the annual growth rate pegged at 54 percent.

During the year of 2014, Vietnam's exports to Morocco posted a 48 percent year-on-year growth to 148 million USD. Morocco is one of the 10 largest African importers to Vietnam.

The country mainly ships telephones and components, coffee, seafood, computers, electronics and components, garments, fibre, footwear, fishing nets, chemicals and pepper to Morocco.

Its imports remain modest, reaching just 8.7 million USD, resulting in a trade surplus of 139.3 million USD. The imported products from Morocco are computers, pharmaceuticals, DAP fertiliser, and raw material for the garment and footwear industry.

Deputy Minister of Trade and Industry, Tran Tuan Anh, said Morocco has an important geographical location as a gateway for Vietnamese businesses to penetrate into the North African market.

In addition, Vietnam and Morocco have a similar open market. Morocco has cut tax tariffs under its commitments to the World Trade Organization, as well signed several bilateral and multilateral Free Trade Agreement including with the European Union and the United States.

Anh said the ministry will update local businesses with market information, carry out more advertising campaigns in the country and formulate a development plan through 2020.

The ministry will also assist businesses in setting up subsidiaries and rice storage warehouses in key markets, such as Cameroon, Angola, and Mozambique, he added.

Zahra Maafiri, General Director of the Moroccan Centre for Export Promotion, said the country has a modern infrastructure, transport and banking system, which would facilitate Vietnamese enterprises' import and export activities.

Vietnamese goods have drawn the attention of the Moroccan people, she said, adding that Morocco will give priority to three main sectors of food and foodstuffs, leather shoes and information and technology.

However, businesses still have to overcome numerous hurdles, such as the considerable geographic distance, a lack of market information, and differences in business customs, and languages.

PM approves Nhan Co industrial zone expansion

The Prime Minister has approved adjustments on planning for development of industrial parks in Central Highlands province of Dak Nong, including the expansion of the Nhan Co industrial zone.

According to the master plan through 2020, the Dak Nong People’s Committee will be in charge of making adjustments and plans on land use in the locality.

Relevant bodies are assigned to make a detailed plan for the expansion, ensuring access to social services such as water, electricity, and environmental protection.

The Nhan Co Industrial Zone which will be expanded to 148 ha from 100 ha is located in Nhan Co commune, Dak R’Lap district and serves domestic bauxite exploitation, aluminium production projects and agro-forestry product processing.

Last year, the provincial economy grew by 12.2 percent, the average income per capita exceeded 32.5 million VND (1,500 USD), and the rate of poor households was reduced to 13.75 percent.

In 2015, the locality is working towards an economic growth of over 12.25 percent, an average income per capita over 35 million USD, and a 2 percent decrease in the household poverty rate.

Russia-ASEAN trade rises fivefold in ten years

Trade between Russia and the Association of Southeast Asian Nations (ASEAN) reached 21.5 billion USD in 2014, a fivefold increase over the past decade.

The figure was released by Russian Deputy Prime Minister Arkady Dvorkovich on April 20 at the plenary session of the World Economic Forum (WEF) on East Asia 2015 in Jakarta, Indonesia.

The Russian Deputy PM said economic relationship between Russia and ASEAN over the past years have been developing positively, adding that Russia see good prospects of cooperation with ASEAN partners in the supply of liquefied gas and helicopters, among others.

He also highlighted that Russia’s external economic policy gives priority to links with the Asia-Pacific region for economic development, especially in Siberia and the Far East.

The WEF on East Asia 2015 is taking place in Jakarta from April 19-21 with the attendance of more than 700 guests from 40 nations. Main topics on the event’s agenda include agriculture, the food market, trade and the spread of high technology.

Loan demand rises as from March

Financial institutions have reported a rise in the demand for loans since the beginning of March, according to a survey conducted by the Monetary Forecast and Statistics Department under the State Bank of Vietnam.

According to the survey, the respondents expect the banking system’s average credit growth will increase to 16.93 percent this year from the 14.57 percent forecast at the previous survey last December.

Meanwhile, they anticipate slight decrease in both deposit and lending interest rates.

Raising capital is forecast to increase by nearly 15 percent from the previous forecast rate of 14.35 percent, with capital mobilization in Vietnam dong to grow faster than that in foreign currency.

Most of the financial institutions involved believe long-term deposits, particularly those of 6-month and longer terms, will increase in the second quarter towards the end of the year.

Vinamilk imports 400 dairy cows from Australia

Vietnam Dairy Products JSC (Vinamilk) received 400 dairy cows from Australia through Singapore Airlines on April 20.

The shipment is part of a total 1,000 dairy cows addition Vinamilk imports during April at Noi Bai International Airport.

As part of an ongoing business strategy to deal with sharply fluctuating world milk prices, Vinamilk has set-out to invest in dairy farms which supply its dairy plants quality products and, at the same time, increase the rate of localization.

By April 2015, Vinamilk has set up 9 dairy farms in Tuyen Quang, Thanh Hoa, Nghe An, Binh Dinh, Lam Dong.

During the period 2015-2017, Vinamilk plans to import dairy cows from Australia.

The company intends to increase its number of dairy cows to 150,000 by 2017 and 200,000 by 2020.

Spring Economic Forum discusses investment environment reform

Titled “Continuing to reform the investment and business climate in Vietnam: Turning Words into Action”, the 2015 Spring Economic Forum opened on April 21 in Vinh City, central Nghe An province.   

The two-day forum reviews the results of the 2014 socioeconomic development plan and proposes measures to implement socio-economic plans during 2015 and improve business environment.

In his opening speech, National Assembly (NA) Economic Commission Chiarman Nguyen Van Giau, said the forum chose the theme of investment environment reform (considered a priority for 2015 and 2016) and slogan “Turning Words into Action” as a result of the NA’s consensus and creativeness.

Giau proposed some issues for discussion related to society, culture, education, science, technology, environment protection, improvement of living conditions, acceleration of administration and judicial reform, anti-corruption, thrift practices and loss-prevention, defence and security.

He suggested evaluating competitiveness through clear indexes, solutions for agricultural restructuring and production connectivity, public debts, ODA garnering, bad debts, import-export, employment, security, support policy for those who made contribution to the national development, insurance, health care and education.

Another important issue slated for debate is international economic integration, including the impact of free-trade agreements and globalisation on Vietnam’s economy.

Tran Dinh Thien, Director of Vietnam Institute of Economics, highlighted that 2014’s growth occurred as the economy continued to show signs of recovery and the post-quarter’s growth was higher than the pre-quarter. However, the recovery rate was low and the growth did not surpass 6%, much lower than the average growth during the 1990-2010 period.

Tran Dinh Thien, Director of Vietnam Institute of Economics

Vietnam’s export markets were diversified but the focus was only on import markets. For instance, Vietnam has shipped products to many countries- the US, the EU, China and Japan but imported up to 29% of total products from China.

Vietnam’s public debts were 46.9%, which was on a safe level proposed by the Ministry of Finance. However, public debt management Thien said, adds to the State budget deficit which has occurred and even increased in recent years.

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