Vietnam allows Uber, but under strict monitoring

Uber private taxi operators have been told by Transport Minister Dinh La Thang they can operate in Vietnam, but will be subjected to strict inspections and regulations.

Thang laid down the law at a meeting on December 22 with representatives of the Uber taxi industry in Hanoi.

"The goal is to bring a safe, convenient trip to travellers, improve enterprises' capacity and to reduce congestion and traffic accidents," Thang said. "The ministry encourages the use of high technology, but companies must ensure passenger safety and prevent unfortunate incidents like the recent rape in India."

Khuat Viet Hung, Vice Chairman of the National Traffic Safety Committee, said he had undertaken five trips with Uber taxi operators, but none had met government standards, such as a displayed taxi badge or a list of prices.

Representatives from Uber said they would investigate those charges, but maintained there was no intention of violate regulations and hoped there would be further consultations so that the new industry can operate within Vietnam laws.

Michael Brown, the director of Uber in South East Asia, said the company was foremost a technology provider, not a taxi firm.

Uber only offers a computer application for mobile telephones so potential travellers can be put in contact with potential drivers to travel to a specific destination, with fees charged to the traveller's preregistered credit or debit card. No cash is exchanged, and transport fees are calculated on the most direct available route. On average, Uber taxis cost a little bit more than a normal taxi, the extra cost having been counted out as a convenience factor.

The president of the HCMC Taxi Association, Ta Long Hy, is opposed to Uber operations and filed a complaint to the Ministry of Transport.

"Uber said they are just medium agency between riders and drivers. But they run a full operation like a taxi firm from accepting passengers, assigning cabs to routes and listing the prices," the association said in its letter of complaint.

Thang ruled that Uber may only make a contract with licensed transport firms. Inspectors from the Transport Ministry will closely monitor the activities of such firms, and conduct random checks on their operations.

The minister said he would ask all relevant departments and the National Traffic Safety Committee to review the current laws and make suitable adjustments if necessary.

The General Department of Taxation has reviewed Uber operations and decided on two paths. If Uber is considered a transportation firm then the VAT tax rate will be three percent, and corporate tax two percent. If Uber is a medium agency then the rate will be five percent of total income.

Uber is a ride-sharing service app to connect passengers and drivers. Currently, several nations have banned Uber, among them France, Belgium, Spain, Germany, Thailand and even some US states. The most common reason is that Uber was not a registered taxi operator, and had launched its operations without seeking proper permits from authorities.

Earlier this month, Uber was banned in India after a female passenger accused one of its drivers of rape. And users of the service in Australia alleged they were charged far more than the standard, metred rate for taxis, with allegations peaking as Sydney city workers tried to get home during the hostage crisis in the central business district, which shut down most public transport.

Firms join first Vietbuild Home expo in HCM City

Around 270 local and foreign companies will showcase their newest products and services at Vietbuild Home 2014, to be held at the Saigon Exhibition and Convention Centre from December 27 to 31.

Focusing on interior and exterior products and home appliances, Vietbuild Home, the first of its kind in HCM City, will feature nearly 900 booths displaying a wide range of products including movable partitions, metal ceilings, doors and windows and accessories, paints, handicrafts, wallpapers, bathroom equipment, electronics, cooling devices and wooden furniture.

Nguyen Dinh Hung, chairman of the Vietbuild Construction International Exhibition Organising Corporation, said 20 per cent of exhibitors were foreign firms from Thailand, South Korea, Singapore, the US, Malaysia, Japan, Italy and Germany.

Demand for interior and exterior furnishing items usually increased at the year-end as people renovated their houses to welcome Tet, said Pham Van Bien, head of the event's organisation board. Therefore, the event provided a well-timed opportunity for companies to market their products and consumers to seek home decor goods.

Vinacomin set to produce 38 million tonnes of coal next year

The Viet Nam National Coal and Mineral Industries Holding Corporation (Vinacomin) aims to produce 38 million tonnes of coal in 2015, generating VND57 trillion ($2.7 billion).

The figures were revealed by Deputy General Director Nguyen Van Bien at a conference on December 23 in northern Quang Ninh province.

To achieve the target, the group will boost production from the beginning of the year in order to both meet domestic demand and stockpile coal.

It will apply advanced technologies to increase production capacity, productivity and efficiency while actively importing coal and then exploiting resources abroad to feed power projects.

In 2014, Vinacomin's coal production is expected to hit 35 million tonnes, with 7.5 million tonnes exported.

Vietnamese businesses in Russia discuss ways to tackle difficulties

Vietnamese businesses in Russia discussed recent difficulties during a workshop in Moscow.

President of the Vietnamese Business Association in Russia Tran Dang Chung noted that Russia faced many economic challenges since taking over Crimea in March, saying that the ruble devaluation was making the Vietnamese community's production, business and import activities difficult.

Participating enterprises talked about problems they had encountered and offered practical solutions.

They suggested taking full advantage of business and investment opportunities, such as pouring capital into agriculture and exporting Russian staples to Viet Nam.

Ambassador to Russia Nguyen Thanh Son affirmed that his embassy would do its utmost to help Vietnamese businesses and increase the role of the Vietnamese community, thus contributing to Russian economic development.

New firms on Ha Noi Stock Exchange enjoy growth

Most of the 13 new listed companies on the Ha Noi Stock Exchange and nine new others on the HCM City Stock Exchange performed well after listing this year.

The Bank for Investment and Development of Viet Nam (BID) in HCM City had the greatest value, with 2.81 billion shares out of the total 3.17 billion new shares, accounting for five per cent of the total market capitalisation.

Apart from the firms operating in the fields of manufacturing, agricultural products, energy and finance, the market also welcomed the first domestic exchange-traded fund – the VFMVN30.

Mobile World (MWG) possibly wrote the most successful story, which featured a charter capital jump from VND627 billion to VND1.12 trillion (from US$29.86 million to $53.33 million) to in less than six months. It remains in the top 10 list of stocks in terms of market price and closed yesterday's session at VND104,000 ($4.95).

Tri Viet Management Investment is another typical example. It increased by nearly 100 per cent in price despite having been listed for only three months.

Other stocks to soar around 100 per cent since listing include Nam Dinh Foodstuff and Agricultural Products (NDF), Thong Nhat Production and Investment (GTN) and Visacom Mineral (VMI).

Many of the companies planned to issue additional shares to raise capital following their listing success. These include MWG, NDF, VMI and CEO Investment (CEO).

However, some companies did not succeed as much as their counterparts. These businesses are Bac A Metallurgy and Mineral (BAM), Petrolimex Installation No 3 (PEN), Viet Thai Electric Cable (VTH) and Ninh Binh Phosphate Fertiliser (NFC).

NFC has notably not seen any shares traded since mid-October.

Project adjustment procedures need to be followed

While implementing investment project adjustments, it is essential for investors to determine the cases where they need to carry out registration or examination procedures in accordance with the law.

The adjustment of investment projects is effected in the form of amending and supplementing the contents of the investment certificates. Enterprises are required to implement the procedure of investment certificate adjustment, while modifying the content related to the objective, scale, location and form, as well as capital and duration of a project.

There are several investment projects, for which adjustment registration or examination procedures are not required, such as:

Projects that adjust but do not change their objectives, scale, location and form, as well as capital or duration;

Domestic investment projects which, after adjustment, are capitalised at less than VND15 billion (US$714,285) and are not subject to conditional investment sectors;

Domestic investment projects which, after adjustment, are capitalised at less than VND300 billion ($14.28 million) and make no changes to the objective and location of investment.

There are a number of projects that need to do registration for investment project adjustment, such as:

Foreign investment projects which, after adjustment, are capitalised at less than VND300 billion and are not subject to conditional investment sectors;

Domestic investment projects which, after adjustment, are not subject to any conditional investment sectors, except projects for which adjustment registration or examination procedures are not required;

Domestic investment projects subject to conditional investment sectors which, after adjustment, make no changes to their objectives and still satisfy the investment conditions specified for them, except projects for which adjustment registration or examination procedures are not required;

The investors shall register the contents to be adjusted with provincial-level state agencies in charge of investment within 10 days of deciding on adjustment.

Investment projects that are subject to adjustment examination include projects which, after adjustment, fall into the following cases:

Foreign investment projects which, after adjustment, are subject to examination for grant of investment certificates; domestic investment projects which, after adjustment, are subject to conditional investment sectors, except cases in which they are subject to registration for investment project adjustment.

The investors shall submit a written request for adjustment of the project, which covers the contents on the project's progress, reasons for adjustment and changes compared with the examined content, to state agencies in charge of investment according to their competence.

In addition, investors may be fined VND20 million to VND30 million ($952-1,428) if they fail to implement the procedures of investment project adjustment in accordance with the law, and will be forced to implement such procedures as prescribed by law.

Lending rises by 11.8 per cent on track to hit annual target

The total payment means by December 19 rose by 15.65 per cent, while credit rose by 11.8 per cent against late last year, announced the State Bank of Viet Nam (SBV).

These increases helped the banking industry to meet its targets set earlier this year, the SBV disclosed during the regular meeting held yesterday. Moreover, deposits during December still increased by 15.5 per cent despite the deposit interest rate cut of 1.5-2 percentage points against the same period last year. Of the total deposits, the Vietnamese dong deposits surged by 16.31 per cent.

SBV Monetary Policy Department Deputy Director Do Thi Nhung announced that credit rose by 11.8 per cent by December 19. Moreover, the growth rate for the entire year is estimated to reach approximately 13 per cent. This value meets the 12-14 per cent annual credit growth target.

The central bank disclosed that lending this year had been positively oriented towards production and trading, especially in the five prioritised industries of agriculture, exports, supporting industries and small- and medium-sized enterprises (SMEs), as well as Hi-tech businesses.

SBV Credit Department Director Nguyen Tien Dong revealed that lending to the high-tech agriculture and rural development industry by the end of this year was estimated to rise by 16 per cent, while lending to SMEs would surge by 14 per cent.

The lending interest rate this year has declined by approximately two percentage points, which brings the rate to the level attained during the 2005-06 period.

Commercial banks have also cut rates for previous loans. Currently, loans with lending interest rates of more than 15 per cent and 13 per cent account for roughly 3.9 per cent and 10.65 per cent of loans offered, respectively. These values are lower compared with the 6.3 per cent and 19.72 per cent recorded in December last year.

The central bank also officially targets a credit growth rate of 13-15 per cent for next year in accordance with the government's targets for GDP growth, inflation control and capital demand and supply.

Viet Nam Asset Management Company Deputy General Director Doan Van Thang announced during the meeting that the company had bought VND123 trillion (US$5.774 billion) of non-performing loans (NPLs) by December 23, of which, VND4 trillion ($187.79 million) had been resolved.

However, Thang shared that more comprehensive measures and closer co-ordination between relevant agencies must be adopted to better handle the NPLs without the use of the state's budget capital.

Workshop discusses economic progress

The next phase of Viet Nam's economic development model should consider the role of science, technology and modern management, said experts at a workshop yesterday in Ha Noi.

Economic Commission Head Vuong Dinh Hue shared that restructuring the economy had been a priority in the implementation of the 2011–2015 socio-economic development plan.

The Vietnamese economy had seen some improvement in the first three years of implementing the plan, but many weaknesses remained, revealed Hue. The information had been disclosed in the workshop in Ha Noi yesterday, which was conducted by the Central Committee of Economy, the State Auditing and the Nhan Dan (People) newspaper. It focused on the Vietnamese economy as the country enters a new phase of development.

He noted that there was no consensus on a new growth model for Viet Nam. Moreover, Hue pointed out that the country's economic growth still heavily relied on capital, natural resources and cheap labour, rather than knowledge and technology.

He said that the economy still faced numerous risks and administrative reforms were slow. He also disclosed that growth was causing negative impacts on the environment.

Thuan Huu, editor in chief of the Nhan Dan newspaper, said that three years had been spent in restructuring the local economy, which focused on three key sectors: public investment, financial and banking system and state-owned enterprises.

The years allotted in this endeavour had shown positive results. However, the restructuring process is still considered generally quite slow with respect to the attainment of the economic reform targets.

Huu expressed his hope that the experts attending the dialogue would be able to offer more solutions on building a specific economic growth model in the future.

Nguyen Quang Thai, deputy chairman of the Economic Science Association of Viet Nam, shared that the model of economic growth used over the past years lacked efficiency and competitive ability.

The failure of the domestic economy to pay attention to efficiency and creation resulted in low labour productivity and reduction in efficiency, Thai explained.

The economy was facing difficulties in adapting to the rapid economic development. It also found it challenging to adjust to the advancements brought forward by science and technology. No innovation should lag behind, he said.

Thai advised that the new economic development model should follow the world economic development standard.

The state should attach immense importance to the private economic sector during the integration period in the future, he advised.

Luu Bich Ho, former head of the Development Strategy Institute under the Ministry of Planning and Investment, said that the new economic development model should push the local economy to aim for sustainable development in terms of productivity, quality and efficiency. Viet Nam should apply modern technologies, scientific breakthroughs and management skills for the development of the local economy and strive to achieve high quality in workforce and input sources.

Companies urged to focus on branding

A long-term strategy based on the country's competitive advantages is critical for national branding, experts urged.

According to Le Tuong Van, a strategy consultant, competitive advantages should be improved to develop Vietnamese brands. This is critical for increasing the added values of products and services. Van said that national branding required the participation of both the government and the enterprises.

The government should formulate a long-term national branding strategy and provide support to enterprises with leading brands to conquer the regional and global markets, and to build brands at the international level, she said.

Currently, many Vietnamese brands cannot reach the international level due to the lack of a national strategy, experts said, pointing out that many products are exported without branding, while many low-quality products exported under Vietnamese brand names are destroying the nation's prestige and leading to low added value.

Stephen Kreppel, an expert in nation branding in the Nation Consultancy, said at a recent conference that exports were important in national branding.

Brands could be built with sustainable economic development, environment-friendly policies and social responsibility, together with natural and cultural heritage and national pride.

Pham Thi Thu Hang, general director of the Viet Nam Chamber of Commerce and Industry (VCCI), said that Vietnamese enterprises should invest more in branding based on their knowledge of the customers' demands.

During global integration, branding is becoming an urgent issue for businesses. However, many enterprises in the country did not pay adequate attention to brand development as they were not well aware of the importance of branding or faced financial shortages, experts said.

Nguyen Quoc Thinh, professor at the University of Trade, said that developing brands without a strategy could be a "danger". He pointed out that many Vietnamese firms did not have their own branding strategies.

Facts show that firms that have successfully developed their brands have had methodical strategies.

According to Hang, it is important that firms pay attention to enhancing the quality of products and services to develop brands.

Tom Vu, a senior expert of the Masso Group, said that Vietnamese businesses should associate with each other to develop brands for each sector and industry to enhance competitiveness.

Branding should focus on sectors with competitive advantages, including agriculture, tourism and fisheries, he added.

The National Branding Programme, approved by the Prime Minister in 2003, aimed to promote the national image and national brand through branded products.

HCM City ensures supply of Tet goods

Enterprises in HCM City have completed plans to prepare goods for the Tet holiday, which falls next year on February 19.

Van Duc Muoi, general director of Vissan Limited Company, which processes and trades fresh and frozen meat and meat-related foods, told Viet Nam News that the company had prepared 46,000 pigs, 2,000 cows and 4,000 tonnes of processed food to serve customers, 10 per cent higher than the previous Tet.

"There will be no price shock during Tet," he said, adding that "we will slash prices sharply on days near Tet to stimulate consumption".

Many poultry and egg providers like Ba Huan and Vinh Thanh Dat plan to increase supply by 10-15 per cent for Tet.

As for confectionery products, most producers plan to increase supply and offer many kinds at a wide price range to meet varying tastes and budgets of customers.

The Bien Hoa Confectionery Corporation (Bibica) plans to supply 1,350 tonnes of confectionery and chocolate for Tet, up 20 per cent over the previous year.

The Kinh Do Confectionery Joint Stock Company has said it plans to supply 5,000 tonnes of confectionery for Tet, 500 tonnes higher than last year's holiday period.

Le Thi Thanh Lam, deputy general director of Saigon Food Company, said the company would supply the market 550 tonnes of food, a year-on-year increase of 5-10 per cent.

Supermarkets have also increased supply of essential goods to meet demand in the run-up to Tet and after Tet.

Saigon Co.op has increased supply of essential goods by two to three times compared to normal months to ensure adequate supply during the holiday. About 90,000 tonnes of goods are expected to be supplied via its chain in three months before, during and after Tet, which is 15 per cent higher than last year's Tet.

Besides essential items sold at 10 per cent lower than the market price under the city's price stabilisation programme, Saigon Co.op, in collaboration with suppliers, will slash prices by 10-50 per cent on thousands of other items.

It also plans to organise at least 141 mobile sales trips to the city's remote districts as well as industrial parks and export processing zones to serve buyers.

Similarity, Big C supermarket chain, which expects a 15 per cent increase in demand, carried out purchasing measures to ensure supply and stable prices.

Besides preparing abundant sources of confectionery, fruits, home decor items, the supermarket will have about 420 tonnes of fresh meat to serve customers during the holiday.

This year, it launched 17 kinds of gift baskets and boxes at prices from VND59,900 to VND1.7 million (from $2.85 to $80).

Until the end of February, it is offering a discount of up to 50 per cent on nearly 4,000 Tet products.

South Korean supermarket chain Lotte Mart is also introducing various kinds of Tet gift baskets to meet customers' demand.

It expects sales to go up by 25 per cent for gift baskets and 60 per cent for meat, eggs, banh chung (square glutinous rice cakes), banh tet (cylindrical glutinous rice cakes) and fruits and vegetables.

Retailers plan to increase the number of cashiers and other activities to ensure convenience and safety for customers during the peak purchasing season.

Int'l integration boosts economy

Viet Nam should promote international economic integration by actively joining global value chains, heard a conference yesterday in Ha Noi.

Participants focused on how to foster international economic integration in each locality, underscoring the need to attract investment to mountainous provinces.

Deputy Minister of Industry and Trade Nguyen Cam Tu highlighted the country's efforts to integrate into the regional and global economies, saying that the process had helped strengthen the country's power and improve living conditions.

Viet Nam had expanded and deepened its ties with other nations while participating actively and responsibly in international forums and organisations, Tu noted.

Extensive international economic integration had greatly benefited the country's economic development, according to the Deputy Minister.

Viet Nam has exported goods to 230 countries and territories, with its export turnover increasing 22.58 per cent per year during the 2011-2013 period. Its business climate has also improved, facilitating enterprises' participation in global value chains.

Joining three value chains, the country played an increasingly important role in the global economy, said Trinh Minh Anh, deputy chief of the Office of the Interdisciplinary Steering Committee for international economic integration.

He added that a number of Vietnamese products had become well-known and competitive in the world market.

US investment fund to inject US$300 mil into Vietnam

The IWCC Co, Ltd and Premier United Investment Fund from the US signed a strategic partnership contract in Ho Chi Minh City on December 22 to inject investment capital into Vietnamese businesses in the coming time.

The move is seen as a step forward strengthening bilateral cooperation and opening up opportunities for foreign investors who want to invest in Vietnam.

Under the signed contract, IWCC will provide financial solutions and  trade promotion strategies for local businesses while Premier Untied Fund will perform its role as an investor and provider of capital, corporate administration solutions.

Accordingly, Premier Fund has agreed to invest US$300 million in pharmaceuticals, infrastructure-construction and garments and textiles. The company’s investment capital amount will be adjusted over the next three and five years.

At present, IWCC has representative offices in the US, the Republic of Korea (RoK) and is a strategic partner for three foreign investment funds in Vietnam with advantageous fields- hi-tech, energy, environment, health and real estate.

By 2017, IWCC plans to open more representative offices  in nations which are investing heavily in Vietnam including Japan, Taiwan (China) and Russia.

Vietnam seafood has ‘banner’ year

Vietnam’s seafood exports increased 18% on-year to US$7.9 billion for the 12 months leading up to 2015, according to the Ministry of Agriculture and Rural Development (MARD), buoyed by record high shrimp exports to the US market.

Shrimp exports alone for the year appreciated 25% on-year overall to an all time record high of US$4.1 billion, with white-leg shrimp posting the highest growth rate.The US continues to lead among nations importing Vietnamese shrimp despite a slight downtrend in the final months of the year. Meanwhile shrimp exports for the year to the EU also increased sharply over 2013.

 Apart from the three traditional export markets of the US, Japan and EU –  shrimp exports to other markets like the Republic of Korea, Australia and Canada – also saw positivesigns with double-digit growth.

Government economists are sanguine on the prospects for Vietnamese seafood exports in 2015, particularly in light of the Vietnam-EU Free Trade Agreement, which is expected to be signed early in the year.

If Vietnam seafood exporters keep their eye on improving quality to meet the increasing demand for imports from the US, EY and Japan, Nguyen Hoai Nam, next year is destined to be more prosperous says Deputy General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP)

Vietnam-China border trade and tourism fair opens

From hand-made to high tech, the 2014 Vietnam-China border trade and tourism fair has kicked off in Dongxing city in Guangxi, China with nearly 500 participating exhibitors.

The five-day event taking place December 22-26 aims to promote cross-border trading between Vietnam and China and includes a large number of trade and investment promotion activities, a wood furniture festival, a festival on the river for the two countries' youths along with a food culture exhibition.

Vice Chairman of the Quang Ninh province People’s Committee Le Quang Tung is leading a delegation to hold talks on the sidelines of the fair with leaders of Guangxi province to strengthen comprehensive cooperation.

High on the agenda of the talks are cooperative efforts to speed up development of the Mong Cai border-gate and Dongxing piloting economic zones, upgrading the transport infrastructure to bolster tourism and activities to combat crime and across the border smuggling.

How to boost int'l economic integration under discussion

Vietnam needs to promote its international economic integration by joining global value chains, to improve national competitiveness, told a seminar in Hanoi on December 23.

The speakers discussed ways to promote international economic integration in each locality and attract investment to mountainous provinces.

Deputy Minister of Industry and Trade Nguyen Cam Tu applauded the country’s efforts in integrating into the regional and global economies, noting the process has helped improve people's living standards.

Vietnam has expanded and further deepened its ties with other nations worldwide while actively and responsibly becoming involved in international forums and organisations, Tu said, adding extensive international economic integration has impacted greatly on the national economic development.

Vietnam has shipped goods to 230 countries and territories across the globe with its export turnover rising 22.58 percent per year during 2011-2013. Its improved business climate has facilitated enterprises' involvement in global value chains.

Trinh Minh Anh, deputy chief of the Office of the Interdisciplinary Steering Committee for international economic integration said joining three value chains, the country plays an increasingly important role in the global economy, thus enabling Vietnamese products to become popular and competitive in the global market.

VAMA objects to news about auto price fall

The Vietnam Automobile Manufacturers Association (VAMA), rejecting news about a possible steep automobile price plunge next year, said tax policies will not affect auto prices.

In a document submitted to the competent authorities, VAMA said online media had reported on the possibility that prices of vehicles of less than nine seats would plunge by hundreds of millions of dong next year. However, according to VAMA, inaccurate information may lead to confusion and misunderstanding among consumers.

VAMA’s objection comes after dealerships have run into difficulties over the past week due to falling sales though this is the peak car sale season of year. Consumers seem to be waiting for car prices to drop next year following news reports, dealerships explained.

Regarding import tax on vehicles of less than nine seats shipped

from ASEAN nations next year, VAMA said it has yet to receive any official announcement from the Ministry of Finance on tax reductions in line with the ASEAN Trade in Goods Agreement (ATIGA).

The proposed import tax discussed by VAMA and the competent agencies is still 50% next year, equivalent to this year’s rate.

The Ministry of Industry and Trade proposed keeping a import tax of 50% by 2017 while the finance ministry wants 50% next year, 40% in 2016 and 30% in 2017.

However, such proposals are awaiting the Government’s consideration and approval. VAMA stated the ATIGA import tariff on completely built-up (CBU) cars will remain unchanged next year, the association’s chairman affirmed.

In terms of special consumption tax imposed on autos next year, the current rate is still in effect and will not change, the association added.

The National Assembly (NA) has recently passed the Law on Special Consumption Tax which will take effect in early 2016. The new law also stipulates that the special consumption tax imposed on autos remains unchanged while proposals to reduce the tax have yet to be approved by the finance ministry.

Therefore, VAMA stated tax policies are unlikely to influence auto prices next year.

Although tax tariffs decreased to 50% earlier this year, compared to last year’s rate of 60%, auto prices did not follow suit while prices of some imported vehicles were still high, especially those shipped from Thailand and Indonesia.

Representatives of Ford Vietnam and Toyota Vietnam said import tax is part of many factors that constitute selling prices in addition to models and exchange rate, among others.

Vinafood 2 invests in large-scale fragrant rice fields

Vietnam Southern Food Corporation (Vinafood 2) will be growing fragrant rice for export on large-scale fields in a bid to cope with fiercer competition from other rice exporting countries.

Vinafood 2 general director Huynh The Nang told the Daily that the corporation will start its large-scale field project to produce fragrant rice and normal-grade grains from the 2014-2015 winter-spring rice crop.

Vu Quang Canh, deputy head of the agricultural product department at Vinafood 2, said the State-owned firm would also gradually switch to buying unprocessed rice to better control the quality of input material.

Canh said development of a production chain and large-scale fields are important steps for Vinafood 2 to create stable and quality rice supply and realize its export target.

In the short term, Vinafood 2 will look for government-to-government contracts and more importers.

Nang said to ensure high quality, Vinafood 2 has signed a memorandum of understanding (MOU) with Cuu Long Delta Rice Research Institute on recovering and developing paddy seeds including ST20 and Jasmine that help it produce quality rice and meet the demand of importing markets.

Nang said the MOU is vital for the corporation to realize its goal because rice only has consistent quality when at least 80-90% of the field areas are grown by high-quality seeds.

Vinafood 2 will begin its first large-scale field in the Mekong Delta province of Soc Trang.

For fragrant rice exports, Vinafood 2 will sell high-quality rice with clear origins and avoid competing directly with the products of the same quality like Basmati of India and Homali of Thailand.

Vinafood 2 plans to export a ton of its fragrant rice at around US$550-600, which is much lower than US$950-1,200 per ton of high-quality rice offered by Thailand and India.

For normal rice, Vinafood 2 will continue focusing on government-to-government contracts in the markets which do not require strict criteria for quality such as Malaysia, Indonesia and the Philippines.

Opportunities for startups in agriculture

Speakers at the Startup Vietnam 2014 conference in HCMC last weekend said few young business people have chosen to start up business in the agricultural sector despite high needs in this area.

Nguyen Hong Hai, general director of Becamex TIC Investment Fund, said Vietnamese consumers are facing up to the fear of contaminated food. Startups could venture into safe farming solutions.

“The UN Food and Agriculture Organization (FAO) has forecast 10-15% of the world’s area can be used for farming in the next 30 years while the world population has kept increasing. Therefore, startups should consider agriculture, and Becamex TIC Investment Fund is willing to support them,” Hai said.

According to him, a few among 100 startups that have reached Becamex TIC this year chose to do business in the agricultural sector.

Nguyen Khac Minh Tri, general director of Mimosa Tek, suggested startups begin directly with farming or providing supporting services for agriculture.

Startup Vietnam 2014 was organized by Startup.vn in cooperation with Becamex TIC and Setech Viet Company.

Dong Nai’s FDI attraction doubles target

The southern province of Dong Nai reported a record foreign direct investment of 1.6 billion USD in 2014, doubling its yearly target.

The new investments came from 75 new projects and 84 expanded ones. The projects are mainly involved in the supporting industry, goods production and machinery manufacturing.

Director of the province’s Department of Investment and Planning Bo Ngoc Thu attributed the increase in FDI attraction to the province’s efforts in administrative procedure reforms, especially in the fields of investment, taxation, and customs, increasing businesses’ satisfaction.

The province will continue accelerating the administrative reforms by introducing online procedures in the coming time, she added.

Dong Nai now has 1,131 valid foreign projects with a total investment of nearly 21.49 billion USD.

The province is home to 31 industrial zones covering nearly 9,560ha, with the land occupancy rate of 66.77 percent, according to the managing board of the Dong Nai industrial zones.

Conference seeks ways for int’l integration promotion

Vietnam should promote its international economic integration by actively joining global value chains, so as to improve national competitiveness , heard a conference in Hanoi on December 23.

Participants focused their discussions on how to foster international economic integration in each locality, underscoring the need to attract investment to mountainous provinces.

Speaking at event, Deputy Minister of Industry and Trade Nguyen Cam Tu highlighted the country’s efforts in integrating into the regional and global economies, saying that the process has helped strengthen the country’s power and improve the living conditions for its people.

Vietnam has expanded and further deepened its ties with other nations worldwide while participating actively and responsibly in international forums and organisations, Tu noted.

According to the Deputy Minister, extensive international economic integration has impacted greatly on the national economic development.

Vietnam has exported goods to 230 countries and territories over the world with its export turnover increasing 22.58 percent per year during 2011-2013. Its business climate has more and more improved, facilitating enterprises’ participation in global value chains.

Joining three value chains, the country plays an increasing important role in the global economy, said Trinh Minh Anh, deputy chief of the Office of the Interdisciplinary Steering Committee for international economic integration.

He added that a number of Vietnamese products have become well-known and competitive in the world market.

Wood products export to go up by 15 percent next year

The export of Vietnam’s wood products in 2015 is likely to grow by 15 percent from this year, said Huynh The Hanh, Vice Chairman of the Handicraft and Wood Industry Association of Ho Chi Minh City.

The Ministry of Agriculture and Rural Development estimated the shipment of timber and wood products at 6.2 billion USD in 2014.

At a workshop on Vietnam’s wood supply and demand on December 23, Hanh reassured businesses that despite a downturn, European companies are stepping up relocating the manufacture of wood products to developing countries.

The US’s imposition of anti-dumping duties on China, the world’s wood processing hub, also offers an opportunity for Vietnamese companies to expand their export market share in the time ahead, he added.

As Vietnam has pledged to comply with the US’s Lacey Act and the European Union’s Forest Law Enforcement, Governance and Trade Voluntary Partnership Agreement (FLEGT VPA), all wood produced in Vietnam or imported from other countries now come from legal sources.

Wood imports in Vietnam currently hail from 26-30 countries which have sustainable forest management instead of 60 countries in the past, Hanh noted.

Tran Le Huy, General Secretary of Binh Dinh province’s Forest Products Association, said timber from Sub-Mekong region countries which are major suppliers for Vietnam during recent years has high risk amid the nation’s greater integration into the global market.

Since December 2014, Vietnam has suspended the temporary import for re-export of logs and semi-processed wood from Laos and Cambodia. The move will possibly help domestic firms increase the product value as more imported timber will be processed for export, he said.

Huy urged the wood sector to increase the manufacture and shipment of processed products with guaranteed origin instead of raw ones, thus raising the global standing of Vietnamese wood products.-

An Giang: Construction of 100 million USD garment factory begins

The Textile Federation Ltd. Co (Taiwan, China) started the construction of a factory producing apparels for export in the southern province of An Giang on December 23.

The plant, located in the Xuan To Industrial Zone, has a total investment of 100 million USD.

 It is expected to create jobs for more than 29,000 local workers once it goes into operation.

In the first phase, the plant covers a land area of 54.7 ha whose infrastructure was fully developed by the province. It is expected to complete by the end of 2016.

The second phase, in 2017-2019, will see the factory expanded by 93.6ha.

The investor expects to increase investment capital to about 500 million USD for the project if everything goes smoothly.

Shrimp export sets new record of 4.1 billion USD

Shrimp export made a record high of 4.1 billion USD in 2014, which expanded by 25 percent from 2013, according to the Ministry of Agriculture and Rural Development.

The figure largely helped Vietnam’s aquatic export turnover reach 7.9 billion USD for the full year, a rise of 18 percent from a year ago.

The US remains the largest importer of Vietnamese shrimp, which has recently seen a surge in orders from the EU.

The product received growing demand from others markets, like the Republic of Korea, Australia, and Canada.

Deputy General Secretary of the Vietnam Association of Seafood Exporters & Producers (VASEP) Nguyen Hoai Nam said local exporters need to focus on retaining the quality of products in order to maintain a high growth trend as well as added values.

Up to 165 countries and territories are importing Vietnamese aquatic products. The US, the EU, Japan, the Republic of Korea, and the ASEAN countries are major importers.

Quang Binh: Work starts on construction of waste recycling plant

Work started on the construction of a 32 million EUR waste recycling plant in Ly Trach commune, Bo Trach district, central Quang Binh province on December 23.

The plant, the province’s largest foreign-invested project so far, will help reduce environment pollution by using German advanced technology to classify and turn waste into useful products.

It is designed to process 300 tonnes of garbage every day which will be used to produce biogas, electricity and fertilizer.

Pham Trong Thuc, Director of the New and Renewable Energy Department under the Ministry of Industry and Trade, spoke highly of the plant and urged more support for the project as waste treatment and renewable energy is a new industry in Vietnam.

The recycling plant is expected to start operation in 18 months.

Vietnam-India trade on upward trend

Two-way trade between Vietnam and India is on an upward trend and likely to reach the target of 15 billion USD by 2020, said Vo Tan Thanh, Director of the Ho Chi Minh City branch of the Vietnam Chamber of Commerce and Industry.

At a workshop on the countries’ trade and investment cooperation opportunities on December 23, Thanh further said Vietnam is suffering from a considerable deficit in trade with India, thus the two sides need to devise effective measures to improve the trade balance through supporting businesses, especially Vietnamese ones, in promoting trade and investment.

Indian Consul General in HCM City Smita Pant said that once coming into force, the Trans-Pacific Partnership (TPP) agreement will be an important bridge linking Vietnam with partner countries, including India.

More and more Indian companies have noticed Vietnam as a potential market with a number of major advantages and opportunities of regional and international integration, she noted, adding that enterprises from her country are keen on expanding credit, aviation, and tourism ties with Vietnam to facilitate trade and investment activities.

During the first 11 months of 2014, bilateral trade was posted at nearly 5.19 billion USD, of which Vietnamese exports to India were worth over 2.27 billion USD, according to the Ministry of Industry and Trade’s Africa, West and South Asia Markets Department.

Vietnam mainly ships mobile phones and components, chemicals, textile fibre, coffee, and pepper to India while importing machinery and spare parts, pharmaceutical, cotton, steel, animal feed, and plastic materials.

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