Deputy PM active at 44th World Economic Forum

Deputy Prime Minister and Foreign Minister Pham Binh Minh has met with several senior foreign officials who are in Davos, Switzerland to attend the ongoing 44th annual meeting of the World Economic Forum (WEF).

On January 23, the Deputy PM met with Swiss Minister of Economy Schneider Ammann, High Representative of European Union for Foreign Affairs and Security Policy Catherine Ashton and US trade representative, Ambassador Michael B.G. Froman.

Besides official sessions, Minh is also scheduled to meet WEF Managing Director Rosler Philipp and Irani Foreign Minister Mohammad Javad Zarif, among others, on January 24.

Themed "Reshaping of the World: Consequences for Society, Politics and Business”, the 22-25 January forum has drawn over 2,500 participants from almost 100 countries, including more than 1,500 business leaders and over 40 heads of state or government.

There will be more than 250 sessions and workshops, whereby they will exchange opinions on issues such as natural growth, global financial outlook, new energy, ocean economies, health and climate change.-

Tet shopping at supermarkets gets busier

The Lunar New Year holiday is just ten days to go, so the shopping spree has got hotter as people prepare for the biggest festive holiday, pushing up the buying power at supermarkets.

In the Daily’s observations, supermarkets in HCMC like Lotte Mart Saigon South and Co.opmart Phu My Hung in District 7, and Co.opmart Cong Quynh in District 1 are busier with crowds of shoppers along aisles no matter what part of the day, morning, afternoon or evening.

Supermarkets also increase the number of cashier counters to avoid long queues of customers waiting to make payments.

At Big C supermarkets, the buying power increased strongly last weekend compared to previous days.

According to a representative of Big C, products bought much at this time of the year are gift baskets, confectionery with nice covers, beverage and apparels. Meanwhile, dried food products are not consumed much.

Nguyen Phuong Thao, director of Maximark Cong Hoa supermarket, said that the number of customers at the supermarket also increased strongly at the weekend and gift baskets, confectionery and dried food are among the products favored the most, she said.

Thao added that “most of the products in gift baskets are domestically produced.”

While supermarkets are full of customers, traditional markets and stores in HCMC are not.

“Tet is just days away but there are few customers,” a vendor told the Daily on Monday.

Online shopping spurs up express service

Domestic express service providers have been busy these days as the online shopping demand has turned strong given the approaching traditional Lunar New Year holiday, or Tet.

Do Ngoc Liem, business director of express delivery service company zShip, said that the number of orders in the first half of this month increased by 20-30% against last December, of which delivery orders of clothes and electric home appliances accounted for 60-70%.

Delivery charges have remained unchanged compared to normal days due to fierce competition in the industry. Aside from existing 50 staff, zShip is recruiting employees for the last week prior to Tet.

Nguyen Tran Thy, business director of F1 Express and Trading Investment Joint Stock Company, said that the firm has received 2,500 to 3,000 orders each day from online trading websites since early this month, up by 40-50% against the previous month. Most orders are made for fashion items, followed by cosmetics and home appliances.

Meanwhile, Tet gifts account for 70% of orders BigC supermarket chain has placed at the company to deliver goods in HCMC and other provinces.

Goods transport departments of coach service companies such as Phuong Trang and Thanh Buoi have also received more guests in recent days.

An executive in charge of goods transport and ticket sale of Phuong Trang station in HCMC’s District 10 said that the office transports around 100 packages to Mekong Delta provinces such as An Giang, Can Tho and Kien Giang each day.

The products include food, clothes and motorbikes and are delivered within 24 hours.

Meanwhile, international express and postal service providers have yet to see higher demands.

Speaking to the Daily via telephone, a manager of Thao Nguyen International Export Import Service Trading Company said that the number of international Tet gift delivery orders has fallen sharply compared to last year.

Air transport charges have also increased by 5-10% against last December, so customers have been hesitant at sending Tet gifts via this channel. In addition, delivery of food products must meet safety standards of many countries, he said.

This month, the enterprise mainly delivers goods to the U.S., Canada, Australia, France, Switzerland, Taiwan and South Korea. Transport charges average out at US$35 per 0.5 kilo to Europe and US$20 to Asian destinations.

Nguyen Xuan Hop, deputy director of Hanoi City-based Dove Express, an agent of DHL in Vietnam, said that the number of overseas Tet gift delivery orders has tumbled against last year.

In 2013, the enterprise received over 200 orders in the first half of January but the figure dropped to around 100 orders this year, Hop said.

Trade turnover enjoys New Year jump

Viet Nam's exports in the first 15 days of this year are up more than US$500 million from the same period last year.

The General Department of Customs said exports surged 10.1 per cent from the previous year to $5.55 billion, while imports increased 15.6 per cent to $5.51 billion.

Textile and garment exports topped the list, rising $201 million. Footwear and seafood exports followed, rising $91 million and $84 million, respectively.

Compared with the same period last year, the country spent more on importing equipment and components (up $237 million) and fabrics (up $48 million).

Foreign-invested firms contributed $3.39 billion, accounting for more than 61 per cent of the country's total exports by value. Moreover, companies spent $3.19 billion on imports, which represented 58 per cent of the country's total imports by value.

The Ministry of Industry and Trade forecast that this year's exports will increase 10 per cent to $145 billion thanks to an expansion into new markets and greater opportunities from new trade deals, such as the Trans-Pacific Partnership (TPP) and the Viet Nam-EU free trade agreement.

In a recent report, HSBC Bank also anticipated a year of robust growth for export-oriented firms because of improving global conditions and the possible conclusion of trade negotiations.

The report added that improved demand from the European Union (EU) and the United States (US) would lift Viet Nam's exports in 2014 by 20 per cent, higher than the growth rate of 15.4 per cent seen in 2013.

With a relatively high exposure to the US market (18 per cent of total exports head to the US) and the EU (14 per cent of total exports), Viet Nam is poised to benefit from improving Western demand, the report noted.

Tet prices lead to slight increase in CPI

January's consumer price index (CPI) for Ha Noi and HCM City surged slightly due to price increases in the run up to the Lunar New Year (Tet) Festival.

According to the HCM City Statistics Office, the city's CPI rose 0.4 per cent this month, against December 2013 but is still the lowest CPI for January in the past five years.

The low rise in rate has also been connected to a sharp decline in purchasing power in January compared with the same month in previous years, said the office.

According to a representative of Big C Supermarket, quoted by VnEconomy newspaper, there have been only modest increases in sales of garments and household items, while sales of rice and other food commodities have remained stagnant.

The approaching Tet holiday means more people are rushing to buy goods and food items, thus driving up prices.

The HCM City Statistics Office said 10 of the 11 items that were typically used to calculate the CPI each month had seen price hikes. Food and catering services, fuel, and housing and building materials, as well as garments and footwear, among other things, saw a price hike between 0.5 and 1.24 per cent. Beverage and tobacco products saw a price hike of 1.29 per cent, and transport services, 1.19 per cent.

Food prices rose only a modest of 0.16 per cent compared with the same period over the last 10 years because of stabilisation measures controlling the supply of rice for the domestic market and the price of food and catering services in HCM City.

However, the price of health care services dropped 0.12 per cent against the previous month. The prices of gold and the US dollar also went down 1.37 per cent and 0.04 per cent respectively.

In Ha Noi, the city's Statistics Office said yesterday that the CPI had increased 0.7 per cent this month, against December 2013, and 6.78 per cent over the same period last year.

The prices of postal and telecom services remained unchanged. Statistics Office noted that prices have been surging, but the surge in prices has not been sudden since there are adequate supply and stabilisation programmes in place.

The price of gas had declined VND43,200 (US$2.2) per 12-kilo gas tank to reach VND460,000-470,000 on January 1.

Earlier, the Ministry of Finance had asked 19 provinces and cities with a higher CPI in 2013 than the national CPI of 6.04 per cent to control the prices of goods and services as the Tet holiday draws closer.

These locations include Ha Noi, Hai Phong, Vinh Phuc, Tuyen Quang, as well as Nam Dinh, Da Nang, Dac Lac and Khanh Hoa.

Vietnam Paper Corporation targets increased production

The Vietnam Paper Corporation (VPC) plans to produce 115,500 tonnes of paper of all kinds this year, up 4.5 percent from 2013, and make a profit of 57.4 billion VND (2.69 million USD).

VPC General Director Vu Thanh Binh revealed the goal at a conference reviewing the corporation’s 2013 business activities in northern Phu Tho province on January 22.

To reach this year’s profit, the VPC must raise its revenue to over 3.4 trillion VND (159.8 million USD), up 27.2 percent from last year’s figure, noted Binh.

Accordingly, the corporation will take a large number of measures to push up investment, productivity and quality of products, with a view to cutting cost price and the amount of waste.

Efforts will be made to promote after-sales services and retain and expand the firm’s share in the domestic and international market. The paper producer will continue to perfect its sales strategy in order to restrict the level of price differences across regions nationwide.

In addition to reducing unnecessary investment projects, the corporation is also focused on tackling the difficulties of its subsidiary Phuong Nam Pulp Mill and a paper material project in the Central Highlands province of Kon Tum.

In 2013, despite difficulties sourced from an increase in price of paper materials and decreased consumption demand, the VPC still reached a revenue of 3.5 trillion VND (164.5 million USD), including 893 billion VND (41.9 million USD) from its export.-

Vietnam, China work to promote aquaculture trade

Vietnam and China have set up their special working groups to deal with inspection and quarantine procedures of agricultural, aquacultural and forestry products imported and exported between the two countries.

These groups were established during a visit by a working delegation from the Ministry of Agriculture and Rural Development (MARD) to China to discuss issues related to trade boost of Vietnamese aquacultural and agricultural products to China.

The visit, lasting from January 16-18, was intended to realise the signed agreement between the ministry and China’s General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) first reached during the Chinese visit of President Truong Tan Sang last year.

During the visit, MARD and AQSIQ reached two important agreements, including a deal on the supervision of food safety on aquatic products, and a memorandum of understanding on technology cooperation and information exchange in fish paste and fat for animal feed production.

They also shared information on risk assessment to open the gate for Vietnam’s mangosteen and rose apples to the Chinese market.

Vietnam also added China to the list of countries with licensed products of plant origin to export to Vietnam.

The two sides also agreed to enhance information exchange on food safety management and the supervision system of both countries, while working closely in organising a conference in the field in 2014.-

Votive paper market heating up, purchasing power low

Although the votive paper market for the traditional Kitchen Gods Festival has been bustling for the past few days, the purchasing power remains low.

According to tradition, the 23rd day of the 12th lunar month is when Kitchen Gods bid farewell and ride on carps to Heaven to report to the Jade Emperor what one’s family has done during the year.

To celebrate the event and honour the Kitchen Gods, families prepare a tray of fruits, votive papers, carps (either real or unreal) as offerings for the Gods’ journey.

They burn votive papers and paper carps and release real carps into lakes or rivers in the hope that the Kitchen Gods will make a successful trip to Heaven.

Strolling around the main streets in Hanoi, visitors can see vendors carry loads of colourful votive papers such as Kitchen Gods clothes and footwear.

“Votive paper” streets like Hang Ma and Luong Van Can even offer paper-made products such as luxury and eye-catching cars, Iphones 5, motorbikes and Ipads.

Votive paper and products are diverse this year in terms of colours and materials, with prices ranging from tens of thousands to hundreds of thousands of Vietnamese Dong.

A shop owner on Hang Ma street said economic difficulties have forced families to tighten their belt and as a consequence traders are not hiking prices in a bid to attract consumers.

A Kitchen Gods package, comprising three suits and hats, costs from VND40,000-60,000 to VND250,000-350,000, depending on sizes. The small-size packages are currently selling the best.

“Very few people ask for paper cars, villas or TV sets,” said Ngan, a shop owner on Hang Ma.

An online service selling carps is booming these days, especially for those who are busy at work. Social forums and networks including facebook are full of information about such service.

An individual facebooker sells three red carps for approximately VND30,000 to VND50,000 depending on the size of the fish. The carps are packaged in a nylon bag and delivered to buyers’ door.

“The online carp market is selling well this year. Yesterday I purchased 1,500 red carps, two thirds of them have been ordered by online customers,” said Tuan, a facebooker.   

Tuan said white-collar workers do not want to waste their time shopping these days, and they fear traders at traditional markets hike prices, so the door-to-door service is a perfect solution.

Trang, another white-collar worker in Hanoi, said she surfs the net and receives around 200 orders at work every day. Her husband is tasked with delivering the carp to customers.

Every day Trang has received approximately 200 orders and the couple pocket several hundreds of thousands of Vietnamese Dong in profit.

HCM City expands trade with Asian neighbors

The Ho Chi Minh City Investment and Trade Promotion Centre (ITPC) is positioning itself to expand trade with its neighbors, Laos, Cambodia and Myanmar.

At a meeting in the city on January 22, ITPC Director Pho Nam Phuong said it efforts are strategically aimed at supporting local businesses to invest in these countries in hopes of boosting cooperation and accelerating import-export activities.

The ITPC is also extending invitations to multinational groups and investors to reciprocate and invest in HCM City, Phuong said.

Nguyen Thi Hong, Vice Chairwoman of the municipal People’s Committee, spoke glowingly of the ITPC’s effort in promoting Vietnamese trademarks abroad and said the ITPC is an important bridge to economic development.

Hong also urged the ITPC to improve upon its image and transform itself into an internationally recognized driving force in promoting trade and investment.

The ITPC should strive to raise research capacity and be creative in implementing proper solutions in line with socio-economic development orientations and actively support business production, Hong suggested.

As the city’s primary trade promotion agency, the ITPC conducted a number of programs in 2013, contributing to stimulating economic demand in agriculture, high-tech and the food industry.

It was also instrumental in the success of a Vietnamese products fair, increasing productive dialogues between the city leaders and businesses, and promoting investment and trade activities in Japan, Laos, and Hong Kong.

Promoting Vietnam-India trade exchange

Vietnam and India saw a 33% trade growth rate in 2013 and they will strive to raise bilateral trade to US$15 billion by 2020.

The figures were unveiled by Harish Taparia, Chairman of the Indian Business Chamber in Vietnam (Incham) at a Vietnam-India Trade Exchange in Hanoi on January 22.

He noted the two countries’ business communities have increased investment and trade exchanges, focusing on tea, pharmaceuticals, information technology, energy, and mining.

To achieve the 2020 target, relevant agencies of India and Vietnam are encouraging their companies to meet and establish partnerships.

At the event, Indian Ambassador to Vietnam Preeti Saran emphasized both India and Vietnam have treasured a time-honoured relationship which was founded and fostered by late Prime Minister Jawaharlan Nehru of India and late President Ho Chi Minh of Vietnam.

She recalled the establishment of the strategic partnership between the two countries in 2007, and the successful organisation of activities in 2012 marking 40 years of bilateral diplomatic ties.

She expressed hope the India-Vietnam partnership will be further developed into the future in all areas including politics, economics, social affairs, culture, education, security and national defence.

The Republic of Korea’s Seoul Electronics &Telecom Co., Ltd. has pledged US$10 million to Phu Ly city’s Chau Son Industrial Park in the Red River Delta province of Ha Nam.

An agreement to this effect was signed between the company and the park’s management board on January 22, becoming the first foreign invested project in the province in 2014.

Under the document, a plant to produce AC adapters for electronic and telecom devices will be built on an area stretching 3 hectares.

The company is expected to receive the investment license prior to the Tet (Lunar New Year) festival so that it can start the plant’s construction after the holiday.

Chairman of the Ha Nam People’s Committee Mai Tien Dung said the Chau Son park will welcome RoK investors and the province will create the best possible conditions for them.

To date, 42 RoK investors are operating in Ha Nam province.

HCM City – Belgium cooperation falling short of potential

There is massive potential for cooperation between Ho Chi Minh City and Belgium, yet their trade ties remain modest, said Chairman of the municipal People’s Committee Le Hoang Quan.

At a reception for Belgian Deputy Prime Minister Johan Vande Lanotte on January, Quan noted the southern economic hub exported US$154 million worth of commodities to Belgium in 2013, while its imports from the country stood at over US$243 million.

Belgium now has 14 projects valued more than US$8.5 million in Ho Chi Minh City and is aiding the city in several important developments, such as dredging the Soai Rap River, he said.

The official expressed his belief through Lanotte’s visit, both sides can boost their collaboration in fields of mutual concern, and Ho Chi Minh City will try its best to promote these relations, especially in economics.

Speaking highly of the development potential with Ho Chi Minh City, Lanotte claimed the Belgian Government attaches great importance to the two countries’ relations.

He voiced his interest in the city’s infrastructure development projects, including those to build a new seaport system.

He also told city authorities to compile detailed proposals for projects seeking financial assistance to make it easier for Belgium to consider them.

Trade promotion scheme lacks funding

Since state funds for the national trade promotion scheme are limited, the relevant ministries, industry associations and enterprises have been urged to focus on improving the scheme's efficiency.

The government has approved a total outlay of VND70 billion (US$3.4 million) for the national trade promotion scheme, which is about 32.5% of the estimated requirement. The figure is also lower than last year's VND93.73 billion (US$4.3 million).

The Deputy Director of the Trade Promotion Agency under the Ministry of Industry and Trade (MoIT), Ta Hoang Linh, said the target for export growth has been set at 10%, or US$145 billion, for this year. That will be a challenging task given the limited state funds.

In order to achieve the export target, the ministry noted exports must be calibrated to suit global consumption trends, while exploiting Vietnam's advantages.

Director of the Trade Promotion Agency Do Thang Hai said the ministry has ratified nine promotional projects that can be implemented early this year.

The first phase of the national trade promotion scheme will receive more than VND30 billion (US$1.4 million).

"The early approval of the national trade promotion scheme will help enterprises plan their own promotional campaigns more effectively, and encourage more enterprises to join the scheme and seek new business opportunities and expand markets," Hai stressed.

In 2013, the trade promotion scheme was focused on traditional products, such as fisheries, agricultural products, wood, garments, and footwear, that contributed to overseas market expansion and local market development.

The national trade promotion scheme supported the participation of more than 6,800 enterprises last year, with the total value of transactions, contracts and memoranda signed increasing to US$1.4 billion.

In addition, trade fairs held under the scheme attracted 1.8 million visitors last year.

Exports to Japan up 4.5% in 2013

Vietnamese exports to Japan hit more than US$13.65 billion in 2013, an increase of 4.5% over the previous year, according to the General Department of Customs.

Garments topped the list of export items, earning US$2.38 billion, accounting for 20% of the country’s total and up 20.7%.

Japan currently consumes more than 13% of Vietnam’s garment exports.

Crude oil came a close second with earnings of US$2.08 billion, down 17.3%, followed by means of transport and tools valued at US$1.85 billion, up 9.9%.

Despite an export value of US$248.2 million, Chemicals achieved the highest growth of 56.2% despite a modest export value of US$248.2 million.

Other products with high growth included wood and timber products (US$819.9 million, up 22.5%), footwear (US$389.3 million, up 18.6%), bags, wallets, suitcases, hats and umbrellas (US$235.3 million, up 33.1%).

Export surplus hits US$40 million in early 2014

Vietnam produced an export surplus of US$40 million in the first two weeks of this year, reported the General Department of Customs.

Accordingly, total export-import turnover hit US$11.05 billion from January 1-15, an annual increase of 12.7%. Of the combined value, export earnings reached US$5.55 billion, up 10.1% compared to the same period last year.

Products attaining high export value included garments (US$201 million), footwear (US$91 million) and seafood (US$84 million).

Foreign direct investment (FDI) enterprises raked in US$3.39 billion from exports, representing an increase of 12.6% and accounting for nearly 61.2% of the country’s total.

The country’s import value hit US$5.51 billion in the reviewed period,, up 15.6%. Key import commodities include machinery (US$237 million), oil and gas (US$138 million), corn (US$60 million) and fabric (US$48 million).

The import value of FDI businesses fetched US$3.19 billion, up 16.3% and making up 58% of the country’s total.

Country’s growth needs in stronger economic restructuring

Vietnam’s economic outlook for 2014-2015 needs to be imbedded with the stronger restructuring of the national economy in order to shape a new growth model, said an official from the Central Institute of Economic Management (CIEM).

Dr. Vo Tri Thanh, CIEM deputy head, made the remark at a January 21 conference called “2014 global economic prospects - coping with policy normalisation in high-income countries” held in Hanoi by the CIEM and World Bank.

He said hastening economic restructuring helps Vietnam’s main components, including State-owned enterprises and banks, operate more efficiently and better adapt to environmental issues, especially climate change.

After a couple of years of recession, the global economy is showing signs of a bounce back this year, pulled along by a recovery in high-income economies, international economists projected.

In addition, developing country growth is firming up, thanks to the recovery in high-income economies and growth in emerging markets, especially China.

However, they said pressure from increasing interest rates and credit bubble in some countries may impose risks.

The growth in East Asia and the Pacific will stay at 7.2 percent in 2014 and see a slight decrease to 7.1 percent in the next two years, said Andrew Burns, Manager of the Global Macroeconomic Trends Team of the Development Prospects Group at the World Bank.

If realised, Burns anticipates the growth rate will mitigate the vulnerability accumulated during the years of middle-income economies’ rapid development.

Economic recovery in high-income nations will propel developing countries’ growth, which, however, will be partly hampered by tightening finance and reducing commodity prices, the WB official said.-

Remittances to HCM City make up half of the total

Overseas remittances sent to Ho Chi Minh City in 2013 hit 4.8 billion USD, accounting for nearly half of the sum channeling to the country.

Between 50-60 percent of the 1.2 million overseas Vietnamese (OVs) visiting the homeland in the year stayed in the City, which is dubbed the country’s economic and business hub.

These figures were reported to more than 700 OVs from 30 countries and territories worldwide to the January 21 get-together with HCM City authorities to herald the upcoming Lunar New Year.

Chairman of the municipal People’s Committee Le Hoang Quan spoke of the significant contributions made by OVs and their relatives across the world to the development and integration of the country and the City.

The official also commented on the fact that more expatriate scientists and experts have returned to invest, research and lecture in the country.

He pledged that the OVs will be proactively provided with information about the country and the city in particular as well as help to live and run business at home with their legitimate rights ensured.

He took the occasion to call on OVs to join hands in spurring the city’s overall growth.

At the meeting, individuals, collectives and businesses in the city with outstanding contributions to OV affairs in 2013 were honoured.-

Bad debts reduced to 3.79 percent

Bad debts in Vietnam’s entire banking system was 3.79 percent of the outstanding loans at the end of 2013, the State Bank of Vietnam (SBV) said on January 21.

The central bank reached its initial target on settling non-performance loans (NPLs) last year, in which the Vietnam Asset Management Company (VAMC), a wholly State owned company managed by the SBV, has bought nearly 40 trillion VND (1.88 billion USD) of bad debts from banks, said Le Duc Tho, head of the SBV’s Office.

The SBV continues to set bad debt settlement as a key target of its monetary policy in 2014, Tho said, adding that it will continue implementing solutions to prevent new NPLs in the future.

In Directive 01/CT-NHNN on implementing the monetary policy and ensuring banks perform safely and more effectively in 2014, SBV Governor Nguyen Van Binh has urged SBV units and credit institutions to improve their financial capacity and governance while ensuring banking operations and handling NPLs.

Vietnam, Germany bolster agricultural cooperation

The Vietnamese delegation’s recent visit to Germany and the upcoming tour of Vietnam by delegates from Bavarian state are expected to further boost cooperation between the two sides in various fields, especially agriculture, biology, and technology transfer.

Vietnamese Ambassador to Germany Nguyen Thi Hoang Anh has made the statement at a recent meeting in Berlin between the two sides.

At the meeting, Martin Neumeyer Deputy Minister of Food, Agriculture and Forestry from Bavarian said the German state takes much interest in agricultural cooperation with Vietnam, adding that he hopes the Vietnam tour in September by Minister Food, Agriculture and Forestry Helmut Brunner will further boost the cooperation between the two sides in the field.

According to Prof.Dr. Do Nang Vinh, Vice Director of the Agriculture Genetics Institute, despite recent achievements in agriculture, it will be hard for Vietnam’s agriculture science to develop without technical assistance in the coming time.

He voiced his hope to set up an effective cooperation mechanism with German businesses and scientists in the sector.

During its visit to Germany, the Vietnamese delegation led by Le Van Tam, Chairman of the Lam Son Sugarcane Refinery Company also visited Saxony State’s Mittelsachsen district and signed an agreement on agriculture and new energy training.

Vietnam, RoK to hasten FTA negotiations

Vietnam and the Republic of Korea (RoK) will speed up their negotiations for the signing of a free trade agreement (FTA) between the two countries in 2014.

The consensus was reached by visiting Deputy Prime Minister Nguyen Xuan Phuc and his RoK counterpart Hyun Oh-Seok, who is also the RoK Minister of Strategy and Finance, during their talks in Seoul on January 21.

Both officials voiced their pleasure at the burgeoning and effective growth of the bilateral friendship and cooperation, particularly since the establishment of their strategic cooperative partnership in 2009.

They agreed on major directions and concrete measures to bring the partnership to a new height for the two peoples’ interests and regional peace, stability, collaboration and development.

They were unanimous in increasing high-ranking visits to enhance mutual trust and understanding, as well as strategic dialogues and result-orientated cooperation in diplomacy, defence and security.

Both sides agreed to intensify their economic and trade relations, working to push two-way trade turnover to 70 billion USD by 2020, and devising practical measures to reach a trade balance.

The host said the RoK will consider optimal conditions for Vietnamese imports into the country and reinforce affiliation in high technology and the support industry.

Deputy PM Phuc affirmed that the Vietnamese Government will spend the RoK’s 100 million USD low-interest loan on expanding its e-governance.

He also asked the RoK Government to continue its support to key cooperation projects between the two countries, including the Vietnam-Korea Institute of Science and Technology, the Vietnam Happiness Programme, and a national training centre for counter terrorism.

Hyun Oh-Seok said the RoK deems Vietnam as an important partner in the region and in its official development assistance (ODA) provision policy. He pledged it will further ODA supply to the Southeast Asian country, especially in green growth, infrastructure building and human resource training.

At the talks, the two sides agreed to exert their efforts to boost people-to-people exchanges, and protect the legitimate rights of their citizens residing in the other country.

The guest spoke highly of the signing of a memorandum of understanding on labour cooperation between the RoK Ministry of Employment and Labour and the Vietnamese Ministry of Labour, Invalids and Social Affairs.

He also asked the host side to soon give quotas for Vietnamese workers to facilitate their employment in the RoK.-

HCM City bourse to get new indices

The HCM City Stock Exchange is set to unveil several new indices next Monday, including the VNMidcap, VNSmallcap and VNAllsharecap.

In 2012 it had announced its VN30 Index of 30 leading companies in terms of market capitalisation and liquidity.

The VNMidcap will have 70 companies with lower market capitalisation than those in the VN30.

The VN100 comprises of those in the VN30 and the VNMidcap.

The VNSmallcap, as the name suggests, consists of companies with low market capitalisation.

The VNAllshare consists of those in the VN100 and the VNSmallcap. The free float of all companies should be more than 10 per cent to remain in the indexes.

HOSE CEO Phan Thi Tuong Tam said at a review meeting last week that the indices are built to reflect the price fluctuations of shares with various levels of market capitalisation.

The HOSE-Index is a standard benchmark to serve investment and act as the basic index for ETF (exchange-traded fund) and derivative products.

Last year the average number of shares traded daily was 64.8 million worth VND1.06 trillion or more than US$50 million, up 15 and 21 per cent from 2012.

HOSE organised 29 auctions, including 16 IPOs, to sell more than 70 million shares for VND825 billion ($40 million), up 551 and 426 per cent. There are currently 303 shares and mutual funds listed on the bourse.

Last October HOSE became a member of the World Federation of Exchanges.

Orient Bank links up with container services firm

The Orient Commercial Bank signed an agreement on Thursday with the Tan Cang-Long Binh Inland Container Depot (ICD) to provide services to the latter's customers.

It will provide loans to companies at a higher rate than normal against their goods warehoused at the ICD, import services like letters of credit (L/C) and customs procedures, and loans to pay for imports.

Exporters can get loans for buying goods for export.

The bank will also offer online import-export tax payment services.

Promotions forbidden for telecom providers with poor services

Telecom companies and Internet providers will not be permitted to offer promotions if they do not ensure the quality of their services before and during the Tet (Lunar New Year) holiday.

The directive was recently issued by the Ministry of Information and Communications.

The ministry has asked telecom firms to increase their monitoring and prevent any illegal third-party from exploiting telecom infrastructure and the Internet to deliver emails or mobile phone messages with illegal content or viruses.

It also urged the service providers to check and maintain their equipment and communication lines, offer support for emergency cases arising out of congested telecom services, as well as ensure uninterrupted services for governmental agencies.

Decree sets conditions for cash payments

The Decree applies to the State Bank of Viet Nam ("SBV"), credit institutions, foreign banks' branches and organisations and individuals making payments in cash.— File Photo

The Government has issued Decree No.222/2013/ND-CP (31 December 2013) regulating payments in cash and the State management of payments in cash in some specific types of transactions on Vietnamese territory.

The Decree applies to the State Bank of Viet Nam ("SBV"), credit institutions, foreign banks' branches and organisations and individuals making payments in cash.

For the purpose of this decree "payments in cash" refers to organisations and individuals using cash to make direct payments or implement other payment obligations. Payments in cash in certain transactions are regulated as follows:

1. Payments by State organisations: Organisations using the State budget or capital must not make cash payments except for transactions that the Ministry of Finance ("MoF") or SBV specifically allows cash payments to be made.

Organisations using State budget are those that make budget estimates, those supported by the State budget, and investors or project management boards with projects financed by the State budget.

Organisations using State capital are those funded by credit that has been guaranteed by the State, capital loaned by credit institutions for investment in national development and other State investment capital.

2. Securities transactions: Organisations and individuals must not make payments in cash for securities transactions on the Stock Exchange. They should not make payments in cash for securities transactions registered and deposited at the Securities Depository and not conducted via the transaction system of the Stock Exchange.

3. Enterprises' financial transactions: Enterprises must not make payments in cash in transactions of capital contribution and share sale, purchase and transfer to other enterprises. Enterprises that are not credit institutions must not use cash to borrow or lend to each other.

4. Providing cash loans: Credit institutions and foreign banks' branches can provide loan in cash to clients in accordance with SBV regulations.

5. Agreement and registration of cash demands: Credit institutions and foreign banks' branches can reach agreement with the clients about plans for withdrawals of money in cash after prior notification from the clients in case the withdrawal involves large amounts. Units transacting with the State Treasury needing to withdraw money in cash must register them in accordance with MoF regulations.

6. Cash services fees: SBV fixes the cash services fees to be paid by its clients. Credit institutions and foreign banks' branches fix the cash services fee to be paid by their clients and list it publicly in accordance with regulations. Cash services mean payments, withdrawals and other cash-related services.

This Decree takes effect on 1 March 2014 and replaces the Government Decree No.161/2006/ND-CP (28 December 2006).

Binh Duong off to great start in attracting foreign investment

The southern province of Binh Duong has attracted US$300 million in foreign direct investment (FDI) in the first 20 days of this year, triple the figure seen in the same period last year.

The province is on-track to meet its yearly target of $1 billion in FDI, the provincial People's Committee chairman Le Thanh Cung said.

In order to capture the opportunities that will be unleashed by the Trans-Pacific Partnership (TPP), which is expected to be signed this year, the province has established the 300-ha Bau Bang Industrial Zone, he noted, adding that the new zone will focus on attracting foreign investment in the textile and garment industry.

Meanwhile, it has also approved the establishment of five additional industrial zones, raising the number of zones in the province to 33 by 2020 from 28 currently, he said.

Since FDI is considered important for industrial development, the local authorities have paid considerable attention to the requirements of foreign investors and made efforts to provide a conducive environment for investing, Cung added.

Priority has also been given to fostering administrative reforms, improving infrastructure and enhancing the quality of local human resources to attract higher levels of FDI.

Despite several global and domestic economic difficulties, last year, Binh Duong attracted over $1.3 billion in FDI. Of the total, $800 million came from 125 newly-licensed projects, while the remainder was accounted for by 124 operating projects that increased their level of investment.

The latest addition has brought the total number of licensed foreign-invested projects in the locality to 2,209, capitalized at $18.72 billion.

These projects mainly focus on industrial production, trade, services, urban development, high-technology products, electronics, accessories and auto spare parts.

Cash crops top $1b in exports

Seafood, timber, rice, coffee, rubber, cashew nuts and cassava earned more than US$1 billion each in export turnover last year.

According to statistics from the Ministry of Agriculture and Rural Development, thanks to a rapid and stable growth of 30 per cent for the past three years, fruits and vegetables joined the $1billion export club for the first time.

The export of aquatic products ranked first with $6.7 billion, up 10.1 per cent over the previous year. The US is the largest importer of Viet Nam's aquatic products, with a value of $1.33 billion, up 21.9 per cent year on year and accounting for 21.89 per cent of the total export value of the product.

The export of timber and wood products, ranking second, brought home $5.37 billion, up 15.2 per cent against last year.

The export of these items saw high growth in big markets such as the US (up 10.26 per cent), China (up 34.64 per cent), Japan (up 20.97 per cent) and the Republic of Korea (up 45.23 per cent).

The export turnover of rice reached 6.61 million tons, valued at $2.95 billion. China ranked first among the importers of rice from Viet Nam, with 2 million tons, worth $849.36 million, and accounting for 30.93 per cent.

Coffee exports, standing at the fourth place, raked in $2.75 billion, followed by rubber at $2.52 billion, cashew nuts at $1.63 billion and cassava at $1.11 billion.

The volume of cashew exports reached 257,000 tons, worth $1.63 billion, and up 15.8 per cent and 9.7 per cent in volume and value respectively.

With a shipment of 3.1 million tons, cassava exports also contributed $1.11 billion to the country's agricultural product export value of $13.1 billion.

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