Japanese investors stepping up presence in Vietnam

Japanese small and-medium investors are increasing their investment in processing, manufacturing and retail in Vietnam, according to the first quarter report by the Ministry of Planning and Investment (MPI).

Specifically, in the first quarter of 2015, Japanese enterprises invested in 81 projects in Vietnam with the total investment capital of $294.36 million, including $136.98 million to finance  new projects and $157.38 million in added capital.

The processing and manufacturing industry ranks first in attracting Japanese investments to Vietnam, boasting the total capital value of $175.76 million and covering 32 projects. The runners-up are real estate, with four projects worth $66.73 million, and retail with 12 projects worth $42.3 million.

In processing and manufacturing, there are three outstanding projects of special significance on account of their investment value and scale of operations.

The first is Kyocera Vietnam Co., Ltd.’s $59.58 million project to produce telecommunication units and mobile phones in the northern province of Hung Yen.

The second project is co-financed by Shibutani Co., Ltd and Shibutani Industry Co., Ltd and aims to construct Vietnam- Shibutani Co., Ltd which specialises in producing components and electronic products. It is located in Dong Nai province with the total capital of $10.8 million.

The third is Mandom Corporation’s investment in export-import and wholesale-retail. The project aims to stimulate Vietnamese foreign trade via founding Vietnam-Mandom Co., Ltd with the total capital of $10 million.

In February, Japan’s largest retailer Aeon, in addition to building its own stores in Hanoi, Ho Chi Minh City and Binh Duong, has recently expanded its presence in the Vietnamese market through the acquisition of two local retailers namely Fivimart, the biggest supermarket chain in Hanoi with 20 stores, and Citimart, the biggest supermarket operator in south with 27 stores. These retail companies hold significant market share by their own rights, handing over lucrative opportunities to Aeon.

At present, about 1,500 Japanese small and medium enterprises are present in Vietnam.

Siemens benefits Vietnam’s cement industry

Germany's Siemens AG Company delivers efficiency and competitive edge for the local cement industry.

Siemens AG, the world’s leading supplier of innovative and environmentally friendly products and solutions for industrial customers has been showcasing its modern environmental-friendly technologies at the ASEAN Federation of Cement Manufacturers (AFCM)’s 24th Technical Symposium and Exhibition in Hanoi during April 22-24, 2015, while sharing best practices and insights on how the industry is able to increase its efficiency and competitive edge.

At AFCM 2015, Siemens has showcased three of its innovative technologies that will help its customers to reduce cost, increase productivity and enhance their competitiveness remarkably. They are CEMAT, integrated drive system and SICEMENT Instrumentation.

CEMAT is a process control system that can help the local cement producers to reduce cement production costs through resource management and productivity monitoring from raw materials to finished products.

For improvement of reliability, productivity and efficiency, Siemens integrated drive system is a unique one-stop solution for the entire drive system worldwide.

Measuring and monitoring output values precisely is essential for optimising production, while alternative fuels and stricter environmental protection safety values are posing new measurement challenges for cement producers.

SICEMENT Instrumentation comprises tough measuring equipment specially developed to suit the harsh demands of the cement industry. Their high degree of reliability, functional capability and maintainability together with their low capital cost makes them an outstanding choice.

“At Siemens, we see all challenges encountered by the cement industry as opportunities, as we offer a complete portfolio of products and solutions that encompasses innovative, new, and updated technologies that can help cement producers to transform developments in the cement market into valuable opportunities, and work to actively shape current and future trends,” said Dieter Schletterer, vice president of Siemens AG’s Cement and Minerals.

“Siemens has everything covered – from design and planning to engineering, execution and service. We are committed to bringing Vietnam our cutting edge technologies in order to best support this fast growing country to meet the increasing demand for cement consumption during the process of national modernisation and industrialisation,” stressed Siemens Vietnam president and chief executive officer Pham Thai Lai.

ASEAN as a developing region has a well developed cement industry that is highly competitive regionally and globally. Vietnam is a vibrant and growing market because cement sales jumped by 16 per cent year-on-year to 64.46 million tonnes in the first 11 months of 2014, fulfilling the government’s full-year target, of which 46.16 million tonnes were sold to the domestic market.

With the rapid growth and development of the industry, technologies are constantly upgraded for sustainable development, focusing on long-term investment strategy and environmental protection.

Vietbuild 2015 kicks off in Danang with photo exhibition

An international exhibition entitled – Vietbuild 2015 – kicked off on April 22 in Danang at the International Exhibition Fair Centre with a photo exhibition featuring the city’s socio-economic achievements over the past 40 years.

Lu Bang, deputy director of the city’s Department of Industry and Trade, said the photo exhibition aimed to vividly portray the city’s accomplishments to help visitors better understand the city’s development.

The event will help to advertise Vietnamese brand names in general and those from the city in particular in hopes of stimulating local trade, tourism and investment attraction activities, she stressed.

The exhibition features more than 480 stands of over 300 domestic and foreign enterprises.

The foreign participants are from Japan, the Republic of Korea, Thailand, Singapore, the Philippines, Malaysia, Indonesia and China.

A seminar has been planned during the five-day event to highlight the city’s development potential and integration process in addition to a dialogue among young scientists, students and enterprises.

 PM instructs monetary-budgetary task implementation

The Prime Minister has requested ministries and localities continue efforts to expedite adopted measures and solutions stated in Party, National Assembly and Government resolutions.

The move aims to proactively deal with declining oil price-triggered State budget collection decrease to ensure budget balance to the 2015 estimates approved by the National Assembly.

In his related directive, ministries and localities are asked to focus on addressing difficulties for businesses to improve their operations and competitiveness, carrying out economic restructuring and shifting growth model efficiently, and accelerating exports while managing imports, towards the set GDP target of 6.2%.

Approved plans on restructuring the economy, sectors, and business fields must be sped up to enable the State-owned enterprises rearrangement project for 2014-2015 to accomplish to its deadline, he said.

More support is required for businesses’ efforts to increase sales, reduce inventories, use new technologies, and improve their product quality.

The PM asked the State Bank of Vietnam to work together with other ministries and localities in handling the monetary policy in a proactive, flexible fashion in close connection with the fiscal policy to manage inflation, stabilise the macro-economy and spur economic growth.

Interest rates and foreign exchange rates must be regulated with regard to developments in the macro-economy, inflation and the monetary market while businesses and economic groups are assisted in accessing credit sources they need for expanded production.

The Vietnam Oil and Gas Group is requested to keep a close eye on crude oil price fluctuations in the global market and proactively work with their joint venture partners and production managers to screen production cost and optimise production activities.

Solutions responding to the worst oil price scenarios must be put in place while works on stockpiling crude oil to ensure energy security and investment efficiency need to be deployed productively.

The Finance Ministry is asked to reinforce regulatory tools to manage the local market, and goods prices and quality, especially formula milk price and transport cost.

The PM has required ministries and localities to enhance tax collection and take measures against tax evasions and transfer pricing to determinedly fulfill 2015 tax collection figure assigned by the National Assembly.

The Ministry of Finance, together with other ministries and localities are asked to follow closely the economic performance and crude oil prices in order to adjust import tariff levied on petroleum products. They are not allowed to propose or issue new policies that could reduce the State budget, except for cases of cutting taxes in compliance with international commitments.

The PM has requested non-issuance of any policies or mechanisms that would cost the State budget when a secured source is absent.

Ministries and localities need to quicken the disbursement of development capital, especially those sourced from the State budget, Government bonds, and Official Development Assistance (ODA).

Expenditures for meetings, seminars, festivals, construction ground-breaking and inaugural ceremonies, and foreign business trips, covered by the State budget, must be minimised and declared publicly, among others.

State budget overspending must be maintained within the level already decided by the National Assembly, the PM said.

Localities should proactively map out their own measures to accomplish 2015 State budget collection tasks while working to ensure their budget allocated is used correctly, economically, and efficiently, he noted.

Samsung Tops Vietnam’s 500 Fastest Growing Firms

The Vietnam Report in collaboration with VietnamNet on April 22 presented the 2015 FAST500 awards to the top-500 fastest growing firms in the country with Samsung Electronics Vietnam Co Ltd taking first place.

It was followed by Vietnam Electricity (EVN), Vietnam National Coal-Mineral Industries Holding Corporation Limited and Vung Ang Oil and Gas Petroleum JSC (Vung Ang PV Oil).

The average growth rate of the top 10 companies in FAST 500 from 2013-2015 was 102.18%.

Vietnam Report also announced another list of the 500 fastest growing small and medium enterprises (SMEs).

The top 10 SMEs reached an average growth rate of 82.29% in three consecutive years.

More than 200 representatives from top 500 fastest growing enterprises gathered at the awards presentation ceremony held at the International Convention Centre in Hanoi.

 Young entrepreneurs encouraged to take part in ASEAN fair

AYCIF representative Sulistyo

The Small and Medium-sized Enterprises Support Centre in the northern region’s recent press conference in Hanoi has called on Vietnamese young entrepreneurs to attend ASEAN Youth Creative Industry Fair (AYCIF).

The fair acts as a bridge for ASEAN entrepreneurs to promote their products to the world and provides an excellent opportunity for them to exchange experiences, while establishing a partner network.

AYCIF organizing board representative Gilang Ageng Sulistyo said that the event will help ASEAN young entrepreneurs expand the connection network among entrepreneurs.

The fair themed “Seizing Opportunities within Harmony” is set to get underway in Jakarta, Indonesia on August 29-30, and hopes to attract creative industry players throughout ASEAN region and Japan to discuss, network, and showcase their works and products.

To kick-start AYCIF's series of events, this press conference also marks the official opening for the registration of the Creativepreneur Competition.

The competition is divided into 4 categories based on each sub-sectors in the creative industry: Fashion, Craft & Product Design, Games & Applications, and Movie & Animation.

Online registration can be made at the following address: Aseancreativeyouth.org.

Australia grants ‘entry visa’ to Vietnam litchi

The Australian Department of Agriculture, Fisheries and Forestry (DAFF) has opened door to Vietnam’s litchi to penetrate the market.

Australia has become the second demanding market for Vietnam’s fresh litchi, which is trailed by the US.

According to the Plant Protection Department (PPD) under the Ministry of Agriculture and Rural Development (MARD), 2015 will be the first year Vietnam exports fresh litchi to the US and Australia, helping to diversify export markets.

The PPD has granted codes to 10 qualified specialized areas to export litchi to the US and Australia.

The Vietnam Fruit and Vegetables Association (Vinafruits) said this is a good news for Vietnam’s fresh fruits, particularly litchi as the fruits produced in specialized areas in Hai Duong, Hung Yen and Bac Giang provinces are often stockpiled in peak season.

Vietnam revives logging industry by going green

The Ministry of Agriculture and Rural Development (MARD) recently revealed that the government plans to sign a voluntary partnership agreement (VPA) related to the timber industry with the European Union (EU) by the end of the year.

In making the announcement, Nguyen Tuong Van, director of the government, private sector and civil society interagency group negotiating the agreement said she expects that as a result of the VPA timber exports to the EU market will ratchet up dramatically.

The overall objective of the trade deal is to guarantee that all timber exports by Vietnam to any of the 28 countries comprising the EU come from legal sources Van said.

The agreement delineates Vietnam’s laws related to environmental protection, logging rules, payment of fees, timber trade, transport regulation and property rights. Notably it also addresses the rights of communities whose livelihoods depend on forests.

The legal scheme provides Vietnamese relevant agencies shall verify timber and related products are sourced and produced legally and that the proper authorities shall issue a special license called a – FLEGT licence – for each consignment exported to the EU.

The license will provide evidence that the shipments are legally compliant with Vietnamese law and that adherence to the law has been verified. Once the VPA comes into effect no other unverified shipments from Vietnam to the EU will be allowed.

Any violators caught illegally exporting or attempting to circumvent the law and export timber products will be treated appropriately within the confines of the Vietnamese justice system and subject to the legal remedies as it so imposes— such as fines, imprisonment or other sanctions.

The VPA also ensures the EU will provide support to assist Vietnam implement it and once the system is put in place that the EU will only accept FLEGT-licensed timber shipments from Vietnam.

Most importantly the interagency group led by Ms Van has provided all forest stakeholders in Vietnam the opportunity to get involved in developing the national legality standards and to be part of the process reaching a consensus on forest rights during the negotiating process.

In addition, Ms Van stressed the VPA will help Vietnam expand its markets not only to the EU but other markets around the globe by improving governance and sustainability.

The VPA is bringing about changes in Vietnam's laws that are more consistent with those in the EU, US, Australia, and Japan thereby paving the way for expanded timber exports to all of these nations.

The VPA model is unique in the sense that it is not imposing any laws of the EU on Vietnam neither are there any international laws, courts or tribunals involved as there are in almost all other trade agreements.

The VPA model is fundamentally based on Vietnamese legal regulations and exporters must obtain a license from the appropriate government officials documenting their legal compliance prior to any shipment leaving the country.

It will help Vietnam’s exports because it heightens Vietnam’s international image and puts in place a sustainable industry of Vietnam’s own making that will allow for reduced tariffs into markets such as the US, Japan and Australia.

It is a way of reviving and reinvigorating the timber sector— by giving it privileged access to European markets and the opportunity to let the world know that Vietnam- a nation is serious about green and positioning itself as a leader in the movement.

Meat imported from EU up sixfold

Frozen fresh pork imported into Vietnam from the EU has jumped 7.5 fold to 6,100 tonnes while imported beef has risen by sixfold to more than 1,000 tonnes over the past three years.

Vietnam becomes a target market of the European pork and beef producers and exporters, said Agnieszka Rózanska, President of the Union of Producers and Employers of the Meat Industry (UPEMI).

EU beef and pork exports to Vietnam are expected to increase by 5% after the “Tradition, Quality and European Taste” campaign launched by UPEMI in the country ends in July 2016, Rózanska added.

Around 100 exporters from EU countries have been licenced to ship meat to Vietnam, 40% of them are from Poland.

However, the UPEMI representative said, EU meat is facing fierce competition from US and Australian rivals due to its higher price. That is why, in its initial period, the campaign, which was launched in July 2013, targeted distributors, wholesalers, importers, local manufacturers and processors, industry associations, and five-star hotels.

The UPEMI chose the first three countries, namely the Republic of Korea, the US and Vietnam to carry out its campaign to promote the sale of EU beef and pork.

 Vietnam to open doors for private railway infrastructure investment

The Vietnam Railways Corporation (VRC) has put forward a proposal to allow private investors to build logistic facilities and offer associated services in three railway projects under the public private partnership (PPP) model in a meeting on implementing the PPP in railway infrastructure in Hanoi.

Local media cited Tran Ngoc Thanh, VRC Chairman , as saying that under the PPP mechanism, his corporation will be responsible for setting up transport infrastructure like unloading equipment, train stabling facilities, and warehouses at three stations Yen Vien (Hanoi), Dong Dang (Lang Son Province in the north), and Song Than (Binh Duong Province in the south).

Meanwhile, private firms will be allowed to invest in facilities to serve the transport of goods by rail, focusing on cargo yards, storage, cargo-handling equipment, and warehouse management systems, Thanh said.

Regarding business conditions, investors from the private sector can collect fees for the services they offer, based on a price frame approved by the state and the VRC, Thanh said.

According to the chairman, the introduction of the PPP model in railway services will help change the current mindset of the industry: only VRC subsidiaries are allowed to join.

"VRC subsidiaries have been favored when it comes to investing in those projects, but the situation will change. We are inviting investors from the private sector, and even allow them to buy trains to run on the railroads we built and use the associated services we are offering,”Thanh Nien (Young People) newspaper quoted him as saying at the meeting.

He named some firms like Vingroup, Bach Dang, Indo Tran Logistics, and ATH Express Trains Ltd.

The existing mechanism only allows state-run firms to develop railway infrastructure and offer related services so the business performance of the rail sector has been so poor, Lao Dong (Labor) newspaper said.

As a result, the sector has been unable to attract private investors, the newspaper remarked.

Currently, the railway sector generates around VND400 billion (US$18.4) a year, but its cost amounts to VND2 trillion (US$92 million).

Vice Minister of Transport Nguyen Ngoc Dong said that his ministry will coordinate with other relevant agencies to review and amend the Railway Law in order to renovate the sector.

The Ministry of Transport will transfer the rights to operate the entire Hanoi-Lao Cai railroad route to private investors in the near future, he said.

Tran Tuan Anh, a representative of Indo Tran Logistics, said the firm wants to join in railway transport development as a good logistics supply chain cannot be complete without railways.

A Vingroup representative, Tran Thanh Son, said his company is eager to invest in railways for tourism development, but the country must have quality trains meeting European standards to cut the travel time to less than five hours and attract more passengers.

Government Decree No.15, which regulates investment under the PPP form, was issued in February this year, opening up more opportunities for the participation of the private sector in many fields exclusively reserved for state-owned firms before, including infrastructure, electricity, water, education, transport, health, and the environment.

According to experts, the decree is a prerequisite for infrastructure projects, particularly in the area of transport, to be implemented more effectively.

At the meeting, Minister of Transport Dinh La Thang asked relevant state agencies to review existing laws, decrees, and circulars on railway management to ensure a legal basis for the implementation of the PPP by the end of the second quarter.

The private sector has seen the potential for investment in railways as they can both earn profit and improve the sector’s performance, he said.

Minister Thang also urged the VRC to speed up its restructuring and equitization.

HCM City: Economy maintains momentum

Ho Chi Minh City recorded strong economic growth in the first four months of 2015, according to a report from the municipal Department of Planning and Investment released on April 23.

Retail and service revenue totalled more than 221.4 trillion VND (10.3 billion USD) within the period, an annual rise of 10.7 percent.

However, four-month export turnover amounted to 9.29 billion USD, a 3.4 percent reduction from 2014.

The fall in exports was fuelled by decreased volume of crude oil, explained Head of the department Thai Van Re. Excluding crude oil, the total export revenue marked 8.03 billion USD, increasing 8.3 percent year-on-year thanks to the annual 12.2-percent growth in industrial products, he added.

As of April 20, there were 158 licences granted to new foreign-funded projects worth 615.3 million USD and additional investments poured into 52 existing projects.

During the period, 8,823 domestic enterprises were founded with registered capital amounting to approximately 47 trillion VND (2.2 billion USD).

The city collected some 98.2 trillion VND (4.6 billion USD) for the State budget, up 9.36 percent annually, said Director of the municipal Finance Department, Dao Thi Lan Huong.

To maintain the current economic momentum, the southern hub’s authorities will press ahead on a number of measures including enhancing traditional markets, seeking new potential markets and launching a range of trade promotion campaigns to boost local business performance.

Brussels forum talks Vietnam catfish export to EU

A forum on the export of Vietnamese catfish to the European Union (EU), one of the country’s largest seafood markets, was held in the Belgian capital of Brussels on April 22.

The function, which brought together European importers of Vietnamese catfish, was organised by the Vietnam Association of Seafood Exporters and Producers (VASEP) and the Netherlands’ Centre for the Promotion of Imports from Developing Countries. It was part of the 23rd Seafood Expo Global, taking place in Brussels from April 21-23.

European exporters said Vietnam needs to detail the ice-glazing ratio (ratio of ice glaze to gross weight) and humidity of catfish flesh on the package to improve its transparency and gain consumer trust.

Deputy Director General of the Vietnam Directorate of Fisheries Pham Anh Tuan said Vietnam continually works to promote its catfish product image and transparency. This July, authorised agencies will adjust Decree 36 on the water ratio in exported products relevant to import market requirements.

Regarding concerns on the quality of Vietnamese catfish, VASEP General Secretary Truong Dinh Hoe said the country’s tra and basa fish are raised in a relatively modern process, adding that many companies have centralised farming areas and carefully control fry selecting, fish raising, processing and exporting.

Many firms have received farming standard certificates, such as Global GAP and that of the Aquaculture Stewardship Council, showing international recognition of Vietnam’s fish raising process, he added.

Catfish are being raised over 5,550 hectares of water surface in 10 provinces and one city in the Mekong Delta, generating an export volume of over 1.11 million tonnes per year. Catfish product shipments brought home 1.76 billion USD in 2014.

The EU is now among the three largest seafood markets of Vietnam, next to the US and Japan. The country’s catfish exports to the EU generated 344.3 million USD last year.

New laws contribute to improving business climate

Chairman of the National Assembly (NA) Economic Committee Nguyen Van Giau said the country has made a step forward in completing institutions for the market economy with the promulgation of a series of laws including the Law on Land Use, Law on Business, Law on Real Estate Trading and Law on Construction.

He underlined the transparency, specificity and up-to-dateness of the laws, saying that they facilitate business operation and economic development.

Giau made the statement in an interview granted to Vietnam News Agency correspondents on the sidelines of the seventh Spring Economic Forum in Vinh City in central Nghe An province, hosted by the Vietnam Chamber of Commerce and Industry (VCCI).

He stressed the need for administrative reform and improved public service to ensure effective implementation of relevant policies.

He highlighted the “from words to actions” slogan, saying that improving the business climate is an urgent issue in the economy and among businesses.

Part of the forum’s agenda is to collect experts’ comments on a document verifying the government’s socio-economic development report to be submitted to the NA, Giau said.

He expressed his hope that with straight and constructive comments from experts, appropriate amendments will be made to policies and regulations, ultimately resulting in positive improvements in the issues brought forth at the forum.

International experts have said Vietnam’s legal reform process is a positive improvement and in accordance with the domestic context, the chairman said.

Young enterprises encouraged to attend ASEAN creative competition

A programme has been launched in Hanoi to invite young Vietnamese entrepreneurs to participate in the ASEAN Youth Creative Industry Fair (AYCIF), scheduled to be held in August 2015 in Indonesia.

The competition will draw the participation of young creative entrepreneurs from all ASEAN member states ranging from 15-35 years of age in the four sub-sectors: movies & animation, fashion, games & application, craft & product design.

The programme, organised by the Enterprise Development Agency under the Ministry of Planning and Investment, is expected to select the best creative entrepreneurs in June or July.

The winners will be flown to the final rounds held in Indonesia, the first host country of the AYCIF.

Contestants can register at www.aseancreativeyouth.org.

The AYCIF focuses on promoting entrepreneurship among ASEAN youth in the creative industry and on laying the foundations for continuous synergy among young creative entrepreneurs.

Through its activities and events, young creative entrepreneurs can demonstrate their work, share ideas, and build a regional network that supports the growth of their creative enterprises in preparation for the ASEAN Economic Community.

The AYCIF aims to provide an opportunity for creative young ASEAN entrepreneurs to establish a network and find business partners.

Ba Ria-Vung Tau pepper brand launched

The brand “Ba Ria-Vung Tau pepper” was launched by the Sub-department of Rural Development of southern Ba Ria-Vung Tau province on April 23.

From March 2013 to October 2014, the sub-department worked with the Invenco Intellectual Property Company to build a brand for Ba Ria-Vung Tau pepper, which was recently recognised by the Ministry of Science and Technology’s Department of Intellectual Property, Standardisation and Metrology.

The brand certification is meant to ensure quality control, enhance trade promotion and augment the product’s economic value.

Ba Ria-Vung Tau is a key pepper grower and exporter of Vietnam. It currently has nearly 9,050 hectares of pepper trees generating about 2 tonnes of pepper every hectare, mostly in Tan Thanh, Chau Duc, and Xuyen Moc districts.

Besides the pepper, three other local products also have brands, the “nhan xuong com vang” (longan berries), soursop, and Ba Ria salt. The province is building geographic indicators for these products.

It is also working to build brands for “bun Long Kien” (Long Kien rice vermicelli) of Ba Ria city, “banh trang An Ngai” (An Ngai rice paper) of Long Dien district, and “cha ca Phuoc Hai” (Phuoc Hai fried fish) of Dat Do district.

Dong Nai aims to enhance exports

The southern province of Dong Nai plans to earn 14.4 billion USD from exports in 2015, up 15 percent from 2014, according to the provincial Department of Trade and Industry.

The department said the objective is within reach thanks to the import demand of firms from France, New Zealand and Hong Kong for Vietnamese products, including clothes, construction materials, sanitary equipment and foodstuffs.

Growth is also expected to be buoyed by large orders being shifted to Vietnam thanks to tax and customs incentives from a series of free trade agreements signed and to be signed between Vietnam and other countries.

The locality will foster trade promotion activities, organise study tours and fact-finding missions and join domestic and international trade fairs to achieve the target.

Administrative reform will also be accelerated to enhance the competitiveness of local firms. The role of industrial associations and connections with other localities will be strengthened to expand the export market.

For the first four months this year, foreign trade value of the province was estimated at more than 8.1 billion USD, of which 4.2 billion USD came from exports, up seven percent from the same period last year.

A significant increase has been seen in the major export sectors, including footwear, up 16.1 percent; garment products, 14.7 percent; and computers and electronic products, 12 percent. Most of them were shipped to the US, China, Japan and the Republic of Korea.

In April alone, the province has so far earned 1.1 billion USD from exports, up 9.8 percent from last month, while the import value posted at 1 billion USD, a decrease of 7.9 percent from last month.-

BIDV supports shipbuilding for Quang Tri fishermen

The Quang Tri branch of the Bank for Investment and Development of Vietnam (BIDV) signed a contract on April 23 to provide 13.7 billion VND (652,000 USD) for a local fisherman to build a steel coated boat for offshore fishing.

Doan Van Dung from Cua Viet town, Gio Linh district, is the first fisherman in Quang Tri to benefit from preferential loans in line with the Government’s Decree 67.

According to Director of BIDV Quang Tri Nguyen Sy Hong, the bank has taken the initiative to enable local ship owners and fishermen to access credit loans through simplified administrative procedures.

The bank has helped 10 fishermen complete loan procedures and 15 others are waiting for final decisions on design, cost and suitable manufacturing units for their ships.

The building of high-capacity, steel boats for deep sea fishing is one of the programmes introduced under Government Decree 67/2014/ND-CP with the aim of boosting the development of fisheries.

The move is expected to increase the tonnage of fish caught and lift the incomes of fishermen.

To be able to benefit from the programme, fishermen must be approved by the local People's Committees.

As many as 2,079 new off-shore fishing ships and 205 logistics ships will be built under this decree, according to the Ministry of Agriculture and Rural Development.

Japanese-invested tool manufacturer operational in Dong Nai

The Japanese-invested Tone Vietnam Co. Ltd commenced operations and inaugurated a factory producing handheld tools at the Nhon Trach 3 Industrial Park in Nhon Trach district, southern Dong Nai province on April 22.

The company, with more than 5 million USD in investments, is an affiliate of Japan’s Tone Co. Ltd with 80 years of experience in portable tool manufacturing. It leased 2 hectares of land at the industrial park in 2010 to build its facilities.

Speaking at the inauguration ceremony, Chairman of the Dong Nai People’s Committee Dinh Quoc Thai stressed that his province has offered favourable policies for Japanese investment over the past years, given the financial strength, cutting-edge technology and responsible staff of Japanese firms.

He said Dong Nai has attracted 925 million USD in foreign direct investment (FDI) since the beginning of 2015, 25 million USD higher than this year’s target.

It currently houses about 1,230 active FDI projects worth more than 22.5 billion USD. Among 40 countries and territories investing in Dong Nai, Japan has nearly 200 enterprises with a registered capital of around 3.3 billion USD, Thai added.

Dong Nai is located in Vietnam’s southern key economic region, which also includes Ho Chi Minh City and Binh Duong, Tay Ninh, Ba Ria-Vung Tau, Binh Phuoc, Long An and Tien Giang provinces.

Hanoi’s CPI gains 0.2 percent in April

Hanoi’s April Consumer Price Index (CPI) rose by 0.2 percent against the previous month and 0.74 percent annually, said the city’s Statistics Office.

The CPI has increased for the last two consecutive months, largely due to hikes in the prices of transportation by 2.5 percent, and housing, electricity, water, fuel and construction materials by 1.84 percent.

Home appliances and garments and footwear experienced slight increases of 0.34 percent and 0.25 percent, respectively.

Food prices tumbled 0.72 this month owing to profuse supply coupled with hot weather.

Earlier, Ho Chi Minh City reported a CPI growth of 0.03 percent in April from the previous month and 0.8 percent against the same period last year.

It was also triggered by a sharp 2.71 percent rise in the cost of transportation, followed by housing, electricity, water, fuel and building materials which increased by 0.29 percent.-

Hanoi banks achieve half year's credit target

Hanoi-based banks have achieved half the year's credit growth target of 13-15 percent within the first four months of 2015.

According to the Hanoi Statistics Office, the capital's credit is estimated to rise 6.6 percent against December last year to 1.077 trillion VND (49.86 million USD) in January-April, an estimated increase of 0.8 percent compared with the previous month.

The high credit growth proved that the economy's capacity to absorb capital had improved significantly, the office noted.

Industry insiders also said that the growth was a good signal since the country had always seen negative credit growth in the first months of previous years.

However, they called it a reasonable outcome since the entire economy had seen a significant recovery recently.

Dinh Duc Quang, Deputy Director of Ocean Commercial Bank, told Dau tu chung khoan (Securities Investment) magazine that the credit growth was due to real demand for capital and was therefore sustainable. He contrasted that with similar strong growth in the final part of the year, which was attributable to banks looking for a way to increase lending to achieve their targets rather than due to real demand.

Besides credit growth, the capital mobilisation of Hanoi-based banks is also estimated to rise 5.5 percent from December 2014 to 1.257 trillion VND (58.19 million USD).

Long-term capital mobilisation from 12 months onwards is estimated to account for 30.5 percent of total mobilisation. Mobilisation in Vietnamese dong is estimated to account for 80.9 percent of total mobilisation.

Hung Yen aims to promote agricultural farms

The northern province of Hung Yen plans to expand the development of agricultural farms in a bid to restructure the local agricultural economy.

According to the provincial Department of Agricultural Development, the locality has dedicated around 537 hectares of land for 650 of these economic models, which together brought in an annual turnover of over 1.6 trillion VND (73.6 million USD).

Employing the model helps increase farm product output and create high-quality and competitive products, thus increasing their economic value.

It also promotes the formation of concentrated specialty areas in fruit, ornamental trees and vegetable cultivation as well as livestock and poultry raising, contributing to fully tapping the locality’s advantages in land and human resources.

At present, each farmhouse in Hung Yen has an average profit of between 100-200 million VND (4,630-9,260 USD) per year.

In order to retain the sustainability of the model, local authorities will continue creating favourable conditions for local households to access preferential capital sources while supporting them in building trademarks and promoting and selling their products.

CPI increases slightly in HCM City

The Consumer Price Index (CPI) of the southern Ho Chi Minh City increased 0.03 percent in April from the previous month and 0.8 percent against the same period last year, according to the city’s Statistics Office.

The office said the increase was triggered by a sharp rise in the cost of transport, by 2.71 percent, followed by housing, electricity, water, fuel and building materials which increased by 0.29 percent; and culture-entertainment rose by 0.12 percent.

Price decreases were seen in post and telecommunications (0.17 percent), beverages (0.15 percent) and home appliances (0.02 percent).

Notably, food and restaurant services experienced the largest fall of 0.54 percent compared to the month before.

The price of gold increased by 0.11 percent while the US dollar exchange rate rose 0.43 percent.

Foreign buyers eye Masteri Thao Dien project

Foreign buyers from Japan, the Republic of Korea, Singapore, and the UK are falling for apartments in the Masteri Thao Dien project in Ho Chi Minh City.

The increased interest has been driven by the amended Law on Housing which comes into effect on July 1, granting foreigners improved property rights.

Located in Thao Dien ward, District 2 with its front gate facing on to the Hanoi Highway, the Masteri complex consists of high-end apartments, a shopping centre, offices for lease, parks, lakes, swimming pools, a sports centre, and a playground.

The eight-hectare site gives residents a stunning view of the District 1 skyline to the west and natural surroundings to the east. This breathtaking living space provides great natural light and is built to catch cross breezes off the nearby Saigon River.

According to Masteri Thao Dien business director Trinh Hoai Duc, foreigners have visited mock-up apartments, inspected the quality, and reviewed the legal documentation for the project.

“Foreigners are interested in quality of life issues and are keen on having space and a natural environment. Moreover, the project is directly connected with metro line1 linking Ben Thanh to Suoi Tien, which is another positive factor in the project’s value,” said Duc.

The site will also house the VND3,500 billion (US$164 million) Vincom Mega Mall Thao Dien developed by the Vingroup.

This will be the biggest shopping centre in the east of Ho Chi Minh City and will be directly connected to the An Phu metro station, which is slated to go into operation in 2018.

Techcombank will act as project underwriter and the bank will ensure that should the project not be completed on schedule that all costs for the buyers, including deposits, interest, and related fines will be covered.

Techcombank will also ensure the release of capital flows based on the project’s progress.

According to Richard Brown, a potential buyer from the UK, foreigners were keen to avoid unnecessary legal entanglements. “Foreigners obviously appreciate when the developer’s responsibilities are clearly regulated and the legal regulations and the buyers’ rights are ensured by a bank,” Richard said.

“The fact that developers are starting to do that obviously increased confidence,” he added.

Masteri Thao Dien’s developer – Thao Dien Investment – has also co-operated with leading Vietnamese law firms to issue legal descriptions, and contracts are available in English in order to ensure fair rights for foreign buyers.

The recently-amended Law on Housing has opened up a potentially lucrative opportunity for real estate agents to attract foreigners.

According to official figures, more than 80,000 foreigners are living and working in Vietnam.

Market analysts optimistically assume that this will bring in an additional source of foreign currency to Vietnam, increase liquidity in the real estate market, as well as improve the business and investment environment in Vietnam in the international investment cycle.

This new situation will provide a new challenge for domestic investors who will need to up their game and provide better and clearer legal support as well as higher quality products for this more quality-conscious market segment

“Foreign buyers aren’t just interested in good quality developments; they require transparent legal information on the status of a project and clearly set out responsibilities and commitments for the developers,” said Duc.

Vietnam seeks new markets for agro-forestry-fishery products

Vietnam is struggling to explore new markets for its agro-forestry-fishery products as the 13 percent annual plunge in export value during the first quarter was partly ascribed to the excessive dependence on traditional markets, the Government’s online newspaper reported.

Following the steepest ever fall in both export volume and value in the first three months of 2015, the coffee industry is returning its attention to the domestic market which has traditionally consumed only 10 percent of the total output.

While around 35 percent of the production in the world’s top coffee exporting countries like Brazil and Indonesia are sold domestically, Vietnamese coffee producers have largely ignored the local market, said General Secretary of the Vietnam Coffee and Cocoa Association Phan Huu De.

De said the association will strive to boost domestic coffee sales to 15 percent.

The aquatic sector, contributing to 30 percent of agro-forestry-fishery shipments, is also looking for new markets.

It saw a 20 percent drop in the overseas shipments of fishery products in the first quarter as major aquatic exporting countries recovered and others implemented strong agriculture protection policies.

Vice General Secretary of the Vietnam Association of Seafood Exporters and Producers Nguyen Hoai Nam said decreases have been recorded in traditional markets, noting the 44 percent nosedive in exports to the US due to impacts of anti-dumping duties and the 11.73 percent fall in Japan due to JPY’s depreciation against USD.

Nam said seafood processors are seeking new partners and markets in Asia like China, Hong Kong, the Republic of Korea (RoK), and Arab countries.

The RoK market is not too strict on technical criteria and China and its special administration region Hong Kong are accessible thanks to culinary similarities with Vietnam, he added.

Deputy Minister of Industry and Trade Tran Tuan Anh said the urgent solution is to overhaul the connections between agro-forestry-fishery production areas and the distribution network, promoting purchase efficiency.

Besides helping enterprises improve capacity, the ministry will also foster promotion activities and brand-building programmes to assist them in gaining a firm foothold both at home and abroad.-

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