Vietnam exports to South Korea continue to rise

Vietnam’s exports to South Korea in the first quarter surged 121 percent year on year to US$1.17 billion, as exporters continued to take advantage of the low and zero tariffs under the 2007 ASEAN-Korea Free Trade Agreement.

Textile, footwear, wooden furniture, confectionery, coffee, and seafood were the top items as exports rose in terms of both volume and prices.

Exports to this market has have been on the rise since the trade deal was signed, jumping from $4.5 billion in 2006 to $6.5 billion in the very first year.

Many exporters in Ho Chi Minh City are also eager to apply for a form AK, a certificate of origin issued by the Vietnamese government, which too enables them for low tariffs in Korea.

Huynh Thanh Tong, director of Camau Seafood Processing And Service Joint-Stock Corporation, said exports to South Korea have increased sharply since there has been a jump in demand for Vietnamese seafood like shrimp and cuttlefish.

His company exports 40 to 50 containers to that country every month.

Pham Minh Huong, deputy director of Phong Phu Joint-Stock Company, said her company shipped $5 million worth fabric and cotton to South Korea in the first quarter, nearly half the figure for the whole of last year.

It did not have to pay tariffs, Huong added. Textile products from ASEAN member countries are exempt from import duty in Korea.

The customs department said textile exports to Korea had been worth $111 million in January and February alone, nearly 134 percent up from the same period last year, while footwear shipments jumped by 73 percent in the first quarter.

Other exports like wooden furniture and confectionery also virtually doubled in the period.

M, the director of a textile firm supplying goods to a Vietnam-Korea joint venture at the Tan Tao industrial park in HCMC which exports to South Korea,, said his company has quadrupled output.

It was supplying 7,000 shirts a month and has increased that to 30,000 shirts, and plans to increase it to 40,000 thanks to the trade deal.

Agricultural exporters also said Korean consumers prefer Vietnamese fruits and vegetables.

Long Uyen Company in the southern province of Tien Giang said it recently shipped 16 containers of mango, dragon fruit, and taro to that country.

Diep Thanh Kiet, deputy chairman of the Vietnam Leather and Footwear Association, said exports to South Korea have increased sharply this year.

However, most of it involved subcontracting for Korean companies, he admitted, adding Vietnamese manufacturers need to be more active in building their own brands.

Vietnam exports to France pick up

Vietnam’s export turnover from the French market in January 2011 reached more than 144.74 million Euro, up over 34 percent compared to the same month of last year.

Despite fluctuations in the world market, Vietnam’s exports tend to grow further through the first half of this year.

Its export earnings include over 25 million Euro from garment and textile products, over 24.5 million Euro from electronic products and over 12.6 million Euro from wooden products.

In January 2011, Vietnam imported goods worth more than 36 million Euro from France. A number of France’s automobile trademarks such as Peugeot – Citroen are seen in the Vietnamese market. Vietnam will increase the import of made-in-France cars in the future.

Under the economic diplomacy development programme in the 2011-2015 period, Vietnam will continue to facilitate the implementation of projects and agreements signed with French partners, including a project to upgrade Long Bien bridge, a project to build a medical university, a project to build the O Mon power plant, and an agreement to purchase Airbus A380.

Vietnam is also expected to attract more French investors in the fields of pharmaceuticals, food processing technology, aviation, and aerospace.

CPI in April up 3.16 percent

(VOV) - Ho Chi Minh City’s Consumer Price Index (CPI) in April increased by 3.16 percent over last month, according to its General Statistics Office (GSO).

The CPI rose 8.2 percent in the first four months of the year and 13.39 percent from a year earlier.

The leading groups included transport (over 5.77 percent), foods and drinks (over 4.56 percent), housing and construction materials (over 4.12 percent), equipment and household utensils (over 1.49 percent), tourism and entertainment (over 1.39 percent), garment and textiles, hats and footwear (over 1.24 percent).

Other groups grew by less than 1 percent, such as pharmaceuticals and medical services (over 0.45 percent), goods and other services (over 0.44 percent), post and telecommunications (over 0.16 percent) and education (over 0.05 percent).

However, food prices rose slightly (over 1.23 percent) and rice (barely 0.61 percent) due to a decrease in the demands for rice from the Philippines and other countries.

Foodstuffs continued to increase sharply by over 6.19 percent such as fresh meat (13.23 percent), poultry meat (8.24 percent), processed meat (6.34 percent), eggs of different kinds (7.32 percent), seafood (5.92 percent), processed aquatic products (6.72 percent), vegetables (5.89 percent) and sugar (3.52 percent).

The prices of housing and construction materials also saw a sharp increase.

Association to help young people start their careers

The Prime Minister has agreed to let the Vietnam Young Entrepreneurs Association (VYEA) build a talent fund to assist young entrepreneurs and people in starting their careers.

The Government Office said on April 19 that PM Nguyen Tan Dung has assigned the VYEA to cooperate with the Ministry of Planning and Investment and related ministries and agencies to devise a programme that provides the youth with general knowledge, technical know-how and capital.

During the previous meeting, the PM also encouraged the VYEA to boost public-private partnership in developing infrastructure.

Mr Dung proposed young businesspeople submit to the government ideas and mechanisms for establishing and developing enterprises with strong trademarks.

The government leader said young entrepreneurs should also diversify forms of investment and take an active part in training high-quality human resources.

Vietnam, China boost economic cooperation

Vietnam and China have discussed aid for Vietnam as well as future bilateral and multilateral economic and trade cooperation.

At the seventh session of the Vietnam-China Committee for Economic and Trade Cooperation in Hanoi on April 19, the two sides informed each other of the development of trade cooperation since the sixth session.

They noted that two-way trade exceeded US$27 billion in 2010, higher than the planned target of US$25 billion set by the two countries’ leaders.

The two sides reached agreement in areas of mutual concern, such as the imbalance of trade between the two countries, border economic cooperation, the establishment of a mechanism for the exchange of information and experience between the two countries’ relevant agencies and China's preferential credits for Vietnam's projects in infrastructure, transport, healthcare and personnel training.

Vietnam Airlines to open Hai Phong-Da Nang route

Vietnam Airlines will open a new route from the northern port city of Hai Phong to the central city of Da Nang on April 28.

This is Vietnam Airlines’ 36th domestic air route between 20 provinces and cities across the country.

The national flag carrier will conduct five flights a week on Monday, Wednesday, Thursday, Friday and Sunday, using ATR72 aircraft.

Leaving from Hai Phong and flying to Da Nang, the plane will depart at 20:45 and land at 22:30. From the Da Nang to Hai Phong, the plane will leave at 18:30 and land at 20:45.

The price of a return ticket on the route will range between VND1,500,000-1,700,000.

The opening of this new route aims to promote tourism and create more favourable conditions for businesses.

Developing e-commerce 2011-2015

E-commerce will become an effective key tool for business and trading in 2011-2015.

A seminar on developing e-commerce for the 2011-2015 period was held in Hanoi on April 19.

Thirty-two provinces and cities have already created e-commerce development plans in line with the general development plan for 2010-2015, which was approved by the Prime Minister.

At the seminar measures to build and implement the plan were discussed along with improving the capacity to apply e-commerce and information and communication technologies (ICT) in State management and to support businesses. Advanced e-commerce solutions and the ability of e-commerce to improve the competitive edge were also introduced.

Deputy Minister of Industry and Trade, Le Danh Vinh, said that e-commerce and ICT applications are an indispensable part of any business strategy, especially for small-and medium-sized enterprises.

He said he hopes that the seminar will encourage the Ministry and departments of Industry and Trade to promote e-commerce as an effective tool which is key for businesses to increase their competitive edge in the process of international integration.

Tuna is key export product

Tuna is one of Vietnam’s key exports, after shrimp and tra fish, according to the Vietnam Association of Seafood Exporters and Processors (VASEP).

The tuna export value and volume has risen significantly since early this year and will continue to grow in the future thanks to increasing demand in the US, the EU, Israel and Canada.

The average export price has risen slightly this year to US$5.26 per kilo. It has increased from US$5.7 to US$6.75 per kilogram in the US, from US$7.48 to US$7.76 in Japan and from US$2.9 to US$4.94 in Israel.

The US is a stable market for Vietnamese tuna with an export value of more than US$50 million in the first three months of this year. Vietnamese tuna exports to the EU, Canada and Israel rose steadily 15.6-54.5 percent and increased sharply by 157 percent and 132 percent in Spain and Lebanon, respectively.

The Vietnam Fisheries Association is establishing a group to supervise and protect the ocean tuna fishing and will also propose a cooperative model for fishermen and companies, and for ship owners and businesses in order to protect their benefits.

The Phu Yen People’s Committee has signed a framework agreement with Japanese investors on purchasing, processing, preserving and exporting tuna.

In the initial period, Japanese businesses will send two freezer ships with a capacity between 100-200 tonnes each to preserve tuna at sea. They will also help train Phu Yen fishermen and transfer advanced technologies and make a commitment to consume their products.

InterContinental-Hanoi awarded int’l prize on green growth

The InterContinnental Hanoi Westlake (I.H.W) hotel has received the silver certification by Earthcheck, for its environmental friendly development.

The certification of Earthcheck, a world’s leading web-based provider of solutions for hospitality industry, is based on scientific index on the use of energy and water, gas emission and discharge of wastes.

It complies with the International Panel for Climate Change (IPCC) Guidelines for National Greenhouse Gas Inventory, the World Business Council for Sustainable Development (WBCSD) Greenhouse Gas Protocol, and the International Organization for Standardization (ISO) range of standards for greenhouse gas accounting.

Vietnam signs MOU on rice trading with Bangladesh

The Vietnam’s Minister of Industry and Trade, Vu Huy Hoang, and Bangladesh’s Minister of Food and Disaster Management, Muhammad Abdur Razzak, signed a memorandum of understanding (MOU) on rice trading in Hanoi on April 18. 

The trade relationship between Vietnam and Bangladesh has developed well. Two-way trade turnover between the two countries reached US$288 million in 2010. Vietnam mainly exports rice, steel, cotton, machinery, equipment, plastics and mobile phones to Bangladesh, and rice accounts for 46 percent of total exports.

Although Bangladesh is the world’s fourth largest rice producer with annual production of more than 30 million tonnes, it still has a shortage of rice due to its booming population, frequent natural disasters, and crop failures. The country had to import 2-3 million tonnes of food in 2009.

Vietnam exported more than 350,000 tonnes of rice to Bangladesh in 2010 and earned nearly US$120 million.

The MOU will provide legal framework for the two countries to develop a strategic partnership and establish a stable rice trading relationship. Vietnam is one of the world’s leading rice suppliers and plays an active role in ensuring food security in the region and the world.

Deputy PM calls for more OV investment

Deputy Prime Minister Truong Vinh Trong called on overseas Vietnamese to invest more in Vietnam to develop the country while visiting the wholly foreign-invested Da Phuoc waste treatment complex on April 17.

The waste treatment complex, situated in Binh Chanh district, Ho Chi Minh City receives and treats half of the city’s discharge of 3,000 tonnes per day.

The modern equipped waste treatment area is able to recycle paper, plastic and organic waste.

It was invested by overseas Vietnamese David Duong, owner of the Vietnam Waste Treatment Limited Company.

High prices put pinch on rice exports

Viet Nam had exported 2.1 million tonnes of rice by mid-April of this year, worth US$1.02 billion, beating the 1.79 million tonnes that were exported in the same period last year, said the Viet Nam Food Association.

In the first half of this month, Viet Nam exported 290,040 tonnes worth $136.3 million, according to the association. Asia had the highest demand for Vietnamese rice, accounting for 42.44 per cent of total exports, followed by Africa, America and Europe.

Last week, the export price of Vietnamese 5 per cent broken rice increased by 4 per cent to $485-490 per tonne against the previous week, and by 22 per cent in comparison with the same period last year.

Nguyen Thanh Long, managing director of Gao Viet Ltd Company, said the price of Vietnamese rice was now as high or even higher than Thai rice.

Long explained that this was because companies in Thailand were trying to reduce their stocks and domestic prices were high.

The price of rice on the domestic market has increased by VND1 million ($47.6) to VND5.4 -6 million ($257-285) per tonne against the same period last year. This increase was due to a surge in production costs and low supplies at the end of the domestic rice crop.

Local exporters are feeling the crunch, with domestic prices driving export prices sky high.

If international traders had a choice between Vietnamese and Thai rice at the same price, they would normally go for the Thai product, Long said.

However, Tran Ngoc Trung, director of Vinh Phat Company, said Vietnamese rice was at an advantage having been freshly harvested, compared to the rice from Thailand that had been in storage for a long time so the quality was not as good.

Vo Tong Xuan, a rice expert, said the drop in price of Thai rice was a temporary measure and the export price of Thai rice was expected to increase soon.

Production costs were increasing and Thai farmers would force their Government to increase the purchasing price of domestic rice, he said.

According to Long, Vietnamese firms will also face competition from cheaper rice from Pakistan.

Golf course project comes up to par

The Van Tuong golf course project in central Vietnam’s Dung Quat Economic Zone has come a step closer.

Quang Ngai People’s Committee recently had a working session with HUD Holdings and agreed with the developer’s scheme, but demanded the investor take care of the surrounding environment.

The 114.8 hectare Van Tuong golf course will be part of Van Tuong new urban area, which also encompasses holiday villas, restaurants and resort facilities. The course alone will span 76ha and consist of 18 holes up to international standards.

The project’s designing consultant is US-based IMG.

Developer HUD Holdings is a key player in Vietnam’s property market. In 2010, the group posted over VND31 trillion ($1.5 billion) in revenue, up 21 per cent over 2009, contributed VND2.370 trillion ($114.4 million) to state coffers, up 40 per cent and raked in VND2.058 trillion ($99.4 million) in pre-tax profits, up 28 per cent over 2009.

US-based Infrastructure Management Group, Incorporated (IMG) is an international advisory firm advancing management, finance and development for public and private infrastructure owners and operators in their continuing efforts to perform better.

IMG is a leading source of international experience and innovative methods for infrastructure financing, with experience on the largest transportation and utility private public partnerships in North America.

VN hosts GSMA mobile Asia meeting

Over 200 executives of telecoms businesses across Asia flocked to the central coastal province of Khanh Hoa on April 19 for a regional meeting to boost the exchange of technology with partners from other continents.

The two-day Mobile Asia Congress, sponsored by the Global System for Mobile Telecommunications Association (GSMA), will also aim to increase partnerships and investment in telecommunications and information technology.

Host Vietnam took this opportunity to present its favourable investment climate. Minister of Information and Communications Le Doan Hop emphasised the nation’s recent efforts in creating a perfect legal system, a healthy competitive environment and an equal playing field for players of all economic sectors, both domestically and internationally.

Foreign delegates heard reports on IT and communications development in Vietnam with the fixed telephone subscription reaching 18 per cent of the national population, cell phones, 145 per cent and internet users, 32 per cent, by late 2010.

The country, however, is still in need of telecommunications and IT equipment diversity in order to meet the increasing demand for investment and business in the new stage of development.

Exports to Cambodia on the rise in first quarter

Two-way trade turnover between Viet Nam and Cambodia reached U$$626.4 million in the first three months this year, up 45 per cent over the same period in 2009.

According to the General Department of Customs, Cambodia's imports from Viet Nam surpassed $498 million (up 44.3 per cent) in the review period, accounting for 2.1 per cent of Viet Nam's total export turnover.

In the recent years, Viet Nam's commodity export value to Cambodia has been growing at a double digit rate.

Construction starts on cast-iron plant in Lao Cai

The Viet Nam-China Mineral Resources and Metallurgy Limited Co started construction work on a cast iron manufacturing plant in Tang Loong industrial zone, northern Lao Cai Province.

The plant will have capacity to produce 1 million tonnes of cast iron per year and has total capital investment of US$337 million.

The project is divided into two phases and expected to be up and running by 2015.

Northern port to have biggest ship-lift in Asia

Global power systems company Rolls-Royce is installing a massive lifting facility at a new ship yard near northern Hai Phong port city.

The ‘Syncrolift ship-lift' will be 225 metres long, 35 metres wide and have a maximum net lifting capacity of 28,000 tonnes, making it the biggest device of its kind in Asia.

The ship-lift is expected to be completed next year.

Wine, cosmetic imports may be limited to three ports

The Government may limit the import of wine and cosmetics products to the three ports of Hai Phong, HCM City and Da Nang, according to the Ministry of Industry and Trade.

The move is being considered as many ports that process imports lack facilities to test the quality of wine and cosmetics products.

Businesses discuss social media, buying networks

The AVD Media Corporation held a seminar on the application of media social networks and information technology in business to create a bridge linking sellers and buyers in central coastal Binh Thuan Province on Sunday.

The seminar introduced to enterprises experiences in how to apply IT and e-commerce to production and trade to increase their competitiveness and market expansion.