Natural resources need careful management

Development in Viet Nam has relied too much on the exploitation of finite natural resources, an official of the environment ministry has warned.

Nguyen Thai Lai, deputy minister of Natural Resources and Environment, said yesterday that better conservation must be applied to save the country's non-renewable natural resources.

"Exploitation of natural resources for development has caused some of them to be near the edge of exhaustion, and we need close supervision to control exploitation," he said, adding that such exploitation had become a major problem as the country's pace of urbanisation had increased.

Lai spoke at a recent conference in HCM City organised by the city's University for Natural Resources and Environment. At the conference, 51 presentations by Vietnamese scientists and their counterparts from the US, Germany, South Korea and Australia were delivered.

The presentations on research results discussed several issues, including land-use management, water-resources management, pollution prevention and the impact of climate change.

Vu Ngoc Kich, an expert from the Ministry of Natural Resources and Environment's Land Administration Department, also pointed out that more residents would have to resettle as the rapid pace of infrastructure construction would continue.

Because of this, the quality of land management must be improved to ensure effective use of land resources for different purposes and to protect displaced people.

Kich also said investment for land-use management tasks had been scattered and suggested that a mapping system be developed to enable better management of zoning. At the conference, many scientists brought up the issue of water management and pollution in rivers and canals.

The big river basins of Tien, Hau, Sai Gon, Dong Nai, and Vam Co Dong as well as smaller rivers and canals in Binh Duong, Dong Nai, HCM City and Cuu Long (Mekong) Delta provinces need serious supervision, they suggested.

The southeastern provinces are industrial hubs of the country with a high proportion of untreated waste water pouring into the rivers.

Rivers in the southwestern Mekong Delta provinces now are full of agricultural fertilisers and pesticides as well as waste water from seafood production and processing.

Scientists also said that detailed impact assessments of climate change in vulnerable coastal provinces should be carried out.

Construction starts on national highway

The Transport Ministry and central Binh Dinh Province started construction of a new National Highway 19 section linking Quy Nhon seaport to National Highway 1A yesterday.

Speaking at the opening ceremony, Deputy National Assembly Chairwoman Nguyen Thi Kim Ngan said the section would facilitate socio-economic development and national security in the province, while enabling it to link Viet Nam's central region and Laos, Cambodia and Thailand.

She urged the investor and contractor to complete the project on schedule, while adhering to regulations.

Scheduled to be completed by 2020, the project is expected to cost nearly VND 5.73 trillion (US$280 million).

The entire national route is currently overloaded, and the amount of goods passing through National Highway 19 to Quy Nhon seaport has been constantly increasing.

In 2012, 6.1 million tonnes of goods passed through the seaport, making it the third-most used seaport in the country and first in the central region.

The figure is expected to rise to 12 million tonnes in 2015 and 20 million tonnes in 2020.

The Binh Dinh authorities also asked the NA, Government and other relevant agencies and ministries to consider upgrading the entire highway in the future.

Ngan also acknowledged the province's socio-economic progress with economic growth rate reaching 8.4 per cent in 2012, and asked for the launching of projects that have been allocated funding.

For other projects, including the upgrading part of the National Highway 1A, Phu Cat airport and supporting residents of Nhon Chau Island, she urged the province to submit funding suggestions to the Government.

Vietnam has first company to join ACGA

The Vietnam Diary Products Joint Stock Company (Vinamilk) has become the country’s first biggest dairy company to join the Asian Corporate Governance Association (ACGA).

Now as a member of the ACGA, Vinamilk expects to enhance its competence in the international governance and boost its growth in the region and the world.

Established in October 1999, the 94-member ACGA represents global investment and finance organisations, leading listed companies in Asia, law and accounting firms, trade associations and universities.

Vietnam - Mexico trade exchange exceeds US$1 billion

Two-way trade turnover between Vietnam and Mexico has hit US$1.057 billion over the last ten months, up more than US$20 million compared to last year’s figure.
    
The Vietnamese embassy in Mexico released the information on December 19.

Vietnam’s export earnings climbed above US$985 million primarily thanks to the four major commodities footwear, frozen seafood, coffee, and garments and textiles. Footwear alone accounted for up to 31 percent of total export turnover.

Imports from Mexico—the second largest economy in Latin America—were valued at more than US$71.4 million, up 33 percent against the same period last year. The main imported commodities included machines and associated equipment, computers, steel, iron, and cattle feed.

According to Hoang Tuan Viet, a Vietnamese trade counselor in Mexico, each country’s imports do not negatively affect its domestic producers.

All Vietnamese exports to Mexico are consumer goods, while 60 percent of its imports from Mexico are material goods for production and re-export.

Mr Viet said that in 2012 Vietnam’s exports to the Mexican market are likely to surpass US$1 billion and two-way trade turnover will probably number US$1.2 billion.

Mexico remains Vietnam’s second biggest market in Latin America, second only to Brazil.

Vietnam and Mexico are both involved in the Trans-Pacific Partnership (TPP), alongside Australia, Brunei, Chile, the US, Malaysia, New Zealand, Peru, Singapore, and Canada.

Mexico remains Vietnam’s second largest market in Latin America after Brazil.

HCM City’s cooperation with French locality

The HCM City People’s Committee has signed an agreement on urban planning cooperation with France’s Rhone Alpes region.

At the signing ceremony on December 19, Deputy Mayor Nguyen Huu Tin spoke highly of the recent results of effective cooperation between the two localities as seen in a project on sustainable development of breeding farms, and another project on HCM City’s Post Office lighting system.

During their meeting, the two sides agreed to organize HCM City Days in Lyon city in Rhone Alpes region, promote cultural exchanges, and closely cooperate in climate change adaptation and environmental protection.

On this occasion, HCM City leaders also worked with representatives from Lyon city on issues related to cultural promotion and environmental protection.

Earlier the same day, a seminar was held in HCM City on technology innovation, drawing a large number of Vietnamese and French businesses.

In the past 11 months, trade turnover between HCM City and France reached US$567 million. With 122 ongoing projects totally worth US$763 million, France is currently among top ten foreign investors in the city.

Khanh Hoa’s globefish exports to RoK

Phuoc Tho Company in the south-central province of Khanh Hoa has boasted of making a good profit from its globefish exports to the Republic of Korea (RoK).

The provincial Department of Agriculture and Rural Development (DARD) says this is thanks to Khanh Hoa's project to process and export globefish products to the RoK since 2010.

In recent years, the price of globefish has risen 5-7 times from VND2,000-3,000.

Le Duc Vinh, Vice Chairman of the provincial People's Committee said the globefish exports to the RoK have contributed to increasing fishermen's incomes.

Fire sale on securities firm

Amid economic difficulties and securities market slump, many owners of securities firms have been trying to sell their companies.

Most of these activities have been conducted behind closed doors, and only announced after the deals have been made.

A manager of one listed securities firm, who wished to remain anonymous, said, “Before the two sides complete all legal procedures they prefer keep deals secret.”

While the securities market has long been facing difficulties, those who provide securities trading services, especially smaller securities firms are finding it hard to survive.

The owners of many securities firms have been gradually losing their patience with the market, facing increasing losses.

Amid such challenges, securities firm owners have often faced only the option filing for bankruptcy or seeking partners to renew their capital.

The anonymous securities firm manager said that, even though his company made a profit this year, shareholders have still been withdrawing because of lack of confidence in the market as a whole.

He said that his company and a partner have reached an agreement, and are in the process of negotiating.

If the deal is unsuccessful, the firm would file for bankruptcy and compensate shareholders to the tune of around VND4,000 per share, compared to the current market price of VND2,000 per share, he added.

According to some insiders, many owners of securities firms want to pull out of the market.

Some potential buyers see a unique opportunity to acquire securities firms on the cheap.

The Ministry of Finance’s recently issued Circular 210/2012/TT-BTC to replace the Decision 27/2007/QĐ-BTC on tightened conditions for securities trading has forced smaller and "incompetent" securities firms to brink of bankruptcy, creating a buyer's market.

Still, buyers have remained picky. Most have sought out those companies with chartered capital of less than VND100 billion (USD4.8 million), have a low bad debt ratio and have been transparent in their accounting methods.

Many experts say that there would be fewer securities firms in the near future, and several transfers of ownership.

Agriculture products face tough road to the supermarket

Complex rules and procedures have been preventing locally grown products from getting their place on supermarket shelves.
 
At a meeting about finding outlets for products from rural villages, held on December 19, Vu Thi Hau, Deputy Director of the FIVIMart, said they only accept agricultural products that have at least seven licenses.

The quality standards certificates is the hardest to get, requiring coordination with several different agencies in order to get it done.

This posed even bigger problems for farmers. Because most of them are household business with small output. These complex procedures and high fees have been especially discouraging for them.

In Thua Thien Hue Province, the green tea of Thuy Bieu Village, a famous specialty of Hue, registered their trademark since 2007, but is still unable to find an outlet in supermarkets.

The representative of Thuy Bieu Agricultural Cooperative said the procedures are too complicated and time consuming.

However, Vu Thi Hau, Deputy Director of the FIVIMart said, "The licenses are necessary. We wouldn't be able to guaranteed the quality of products otherwise."

At another meeting about distribution of domestic products from rural villages in the Central Highlands, representatives of well-known supermarkets, such as Big C, Metro and Co.op Mart agreed said that localities are responsible for building up their own brands.

Currently, supermarkets continue to sell many Chinese and Thai products without qualm.

Japanese firms pinpoint hindrances in city

Several problems are hindering business and investment activities of Japanese enterprises in HCMC and would badly affect the investment environment and Japanese capital inflow if they were not timely resolved.

At the roundtable meeting between the HCMC government and the Japanese business community held in the city on Wednesday, Japanese firms mainly complained about issues on labor, infrastructure, tax and customs in Vietnam.

HCMC has tried to overcome the current problems, but many of them are left unsolved, said, Mitsuhiro Mori, president of the Japan Business Association of HCMC (JBAH).

“Laws keep changing and new circulars and regulations continue to come out. When they are put into practice, many complex problems emerge, and thus, the demand for revision arises,” he said.

Vietnamese tax law deems it reasonable that advertising and promotion costs are capped at 10% of total expenses. However, it is a very stringent criterion for those looking to do business in Vietnam.

As such, corporate income tax becomes very heavy. JBAH suggested this provision should be revised.

In addition, the regulation that enterprises must report to relevant agencies in advance on any promotional event imposes great burdens and hinders business activities.

Moreover, since 2009, investors that expand their operations have no longer enjoyed corporate income tax incentives. This adversely affects those investors with the desire to further invest in Vietnam.

As for customs, many enterprises complained about the unreasonable requests of customs officers. Besides, customs clearance procedures are time-consuming and cumbersome, said JBAH.

The ban on import of used machines from China also makes Japanese investors worried. Quite a few Japanese enterprises have made plans for shifting their investment from China to other Asian countries, including Vietnam.

Given the import ban, many Japanese firms with production facilities in China have decided to shift their investment to nations other than Vietnam.

Wage hike is another concern of Japanese businesses. According to JBAH, if there was any sudden wage increase in the coming time, Japanese firms would find it hard to maintain their operations in Vietnam.

Therefore, the association proposed Vietnam should practice prudence in minimum wage hike and have a specific roadmap. Specifically, if wage increase was slated for January each year, enterprises could easily calculate expenses and draw up business plans.

Furthermore, the Vietnam Labor Code sets the overtime working ceiling at 200 hours per year, versus 800 hours in China and Thailand.

Employees want to have extra sums, while enterprises want to keep to their production schedules. Therefore, JBAH proposed the maximum amount of overtime working be increased.

Though the problems that Japanese businesses mention are not big, they would severely affect the investment environment if not timely resolved, said Mori.

“JBAH now has 600 members. I hope this number will rise sharply when the investment environment of HMCC is markedly improved,” he said.

In 2012, Japanese investors top the list of investment in HCMC and Vietnam. It is thanks to the roundtable meeting in 2011, said HCMC vice chairman Le Manh Ha.

The roundtable meeting between the HCMC government and the Japanese business community has been organized regularly since 2006. Proposals made at such meetings have greatly contributed to the improvement of the HCMC investment environment.

VPBank lends VND300 billion to residential project

HCMC branch of Vietnam Prosperity Bank, or VPBank, clinched a deal to finance VND300 billion to a residential project by Nam Long Investment Joint Stock Company in Binh Duong Province.

This agreement enables Nam Long to access this credit in five years with an interest rate of 15% per annum to build Saigon North EHome 4 project in Thuan An District.

The project covers 12.5 hectares with around 2,100 condos and 218 houses from 75 to 90 square meters each. The houses are around VND867 million each.

Besides financing the project, VPBank will give homebuyers credits up to 80% of the value of the house or land lot within 15 years. Customers will enjoy an interest rate of 9.9% per year in the first three months.

Nguyen Vinh Tran, deputy general director of Nam Long Company, said these products will be launched onto the market next year. The enterprise is carrying out a budget home strategy under EHome brand with around 14,000 condos completed within the next five years.

Minister calls for halt to Hanoi’s inactive realty projects

Minister of Construction Trinh Dinh Dung on Wednesday suggested property projects that have not yet carried out site clearance should be halted in order to settle the oversupply problem of the Hanoi real estate market.

Prime Minister Nguyen Tan Dung and the working group of the Government on Wednesday had a meeting with leaders of Hanoi City to seek ways to rescue the city’s realty market.

Nearly 5,800 apartments, over 3,400 villas and semi-detached houses, some 330 low-cost houses and around 175,000 square meters of office for rent remain unoccupied in Hanoi, according to reports of property investors.

Supply in the high-end segment has far exceeded demand, whereas demand for low-cost houses among middle and low-income earners remains huge.

The central bank’s branch in Hanoi informed bad debts of the Hanoi property market had accounted for some 13% of the total bad debts of the banking system.

The overheated growth in the past has resulted in the property market being frozen at present, when the economy is experiencing slowdown and purchasing power is shrinking, said Nguyen The Thao, chairman of Hanoi City.

He added the State management of the property market was not efficient and failed to regulate the housing product profile in accordance with the market demand.

Speaking at the meeting, representatives of many agencies, banks and enterprises said the short-lived price surge and trade boom in Hanoi as well as other big cities had sent false signals about the actual market demand and affordability. As such, enterprises, including inexperienced and financially weak ones, rushed to invest in real estate.

It is a must to remove the difficulties for the property market, because the frozen property market affects not only property traders but also credit institutions. In addition, it deals a hard blow to building material producers and construction, and thus hinders the economic growth.

Hanoi is seeking ways to reduce supply and stimulate demand. In addition, the city will assist property firms in dealing with bad debt and inventory, said Thao.

Hanoi proposed the Government issues a resolution on measures for the problems of the property market. Specifically, the Government should revise the policies regarding credit, tax and land.

Regulations on land use fee payment extension under the spirit of Resolution 13 should be further enforced. First-time homebuyers should be offered value-added tax reductions, suggested the municipal government.

Compared to the HCMC property market, the Hanoi market has fewer projects but the scale of each project is larger; outstanding loans are fewer and prices are higher, said Minister Dung.

He stressed the need to review housing and urban projects and classify them. The projects without site clearance should be halted.

As for the ongoing projects and the completed projects whose products remain unsold, the apartment sizes should be adjusted to meet the demand of the majority of citizens.

Meanwhile, the commercial housing projects that have finished site clearance but yet to begin construction should be turned into low-cost housing projects, serving workers and low-income people.

Therefore, the procedures for restructuring poor-liquidity and incomplete projects and transforming commercial projects into low-cost ones should be accelerated.

Minister of Finance Vuong Dinh Hue requested the city to disclose the information about scale and price of each project as well as commitments of project owners, so that people would not expect further discounts.

Discussions at the meeting on Wednesday, together with discussions with the HCMC government on the previous day, will be put forward at the regular Government meeting this month. After that, a specific resolution for the real estate market will be released, said the Prime Minister.

HCMC, France cement economic cooperation

Rhone-Alpes, which is the second largest region in France, and HCMC will focus on cooperation in renewable energy and modern technology among others in the coming years.

Speaking with local media on the sidelines of a seminar in HCMC on Wednesday, Bernard Soulage, vice president of the Rhone-Alpes council, said his region and HCMC in the near future will strengthen ties in renewable energy, tourism, food processing and biotechnology.

Rhone-Alpes with a population of six million encompasses eight provinces, and is home to numerous research centers, including those specializing in nuclear and energy technologies, he said.

As part of the seminar, HCMC and the French region also signed some agreements on cooperation.

One of the agreements, signed by HCMC Vice Chairman Nguyen Huu Tin and French officials, is to further develop PADDI, a center on urban studies established in Vietnam in 2006, so as to realize assistance programs for the city.

Vietnam and France will celebrate the 40th anniversary of diplomatic ties next year and Lyon City of Rhone-Alpes will carry out a lighting project for the Central Post Office in HCMC. Lyon had previously implemented other lighting projects in HCMC in coordination with related sides.

France’s ENTPE school is working with the HCMC Department of Transport to identify subjects for training human resources, especially in metro engineering, for the city.

Soulage along with Jean-michael Daclin, vice chairman of Lyon City’s council, are leading a French business delegation including economic executives, university lecturers and business owners to visit HCMC these days.

In celebration of the 40th anniversary, a business mission led by a French minister will come to Vietnam to seek business opportunities next year. In addition, several seminars will also be held on this occasion, mostly on urban traffic, environment, oil and gas, cosmetics and retail industries.

HCMC’s exports to France reached US$658 million in value as of last month. The European nation is one of the top ten investors in HCMC with 122 investment projects worth total pledges of some US$763 million in the city.

Investment projects of Rhone-Alpes in HCMC are mainly in urban, environmental and social areas.

Egypt – a gateway to lucrative African market

Egypt has emerged as a potential market for Vietnamese businesses to boost exports and penetrate other markets in Africa.

Despite political instability in Egypt, Vietnamese exports to this North African nation last year increased by 47 percent over 2010, reaching US$256 million. Between January-October 2012, its exports rose 23 percent year on year, hitting US$268 million.

Egyptian consumers prefer Vietnamese farm produce, seafood, fabrics, machinery, motorcycle components, footwear, mobile phones, air conditioners, garments, timber products, ceramics, and chemicals.

According to the Ministry of Industry and Trade, Vietnamese businesses will have more opportunities to penetrate this market in 2013 when the two countries will celebrate 50 years of diplomatic ties. Various trade promotion activities will be carried out during the celebrations.

Both countries will organise the fifth session of the Inter-government Committee in the first quarter to discuss measures to raise bilateral trade value to US$500 million in 2014.

At a recent online conference in Hanoi, experts pointed out difficulties Vietnamese and Egyptian businesses face in boosting their partnerships, including limited access to information and few market research trips.

Representatives from the Vietnamese Ministry of Industry and Trade, the Egyptian Ministry of Commerce and Industry, and the Federation of Egyptian Chambers of Commerce, suggested that the two countries’ business communities should increase visit exchanges, and take part in trade fairs and exhibitions to be held in each other’ markets.

They recommended Egyptian businesses invest in their strong areas of steel manufacturing, food processing, and construction.

Ayman El Abd, General Secretary of the Federation of Egyptian Chambers of Commerce, said his government defines private investment as a key factor in its development strategy, and this sector is expected to grow and flourish in the near future.

The Trade Office of the Vietnamese embassy in Egypt urged businesses to study their profiles and regulations carefully before signing contracts.

To undertake long-term operations, businesses were advised to guarantee the quality of exports, consider appropriate payment methods, and define agencies that are able to settle any possible disputes.

Exports to Spain on the upswing

The country’s exports to Spain in the first nine months of the year showed a sharp increase of 23 percent to EUR1.3 billion, compared to the same period last year.

In the meantime, its imports from Spain were down 3.9 percent to EUR151 million.

Vietnam exported mainly machinery and spare parts, electronics, footwear, garment and textile products, seafood, rubber, coffee and pharmaceuticals to Spain.

It earned EUR1.41 billion from last year’s total exports.  

The two-way trade turnover between the two countries showed a year-on-year increase of 33.4 percent.

Tien Giang exports set new record

Southern Tien Giang Province recorded its highest exports growth ever this year on a turnover of US$860 million, a 3.5 per cent increase, according to the provincial People's Committee.

Shoes, the province's newest export product, account for more than 15 per cent of the provincial export value.

The province's traditional export items, seafood and garments, also continued to do well.

VPBank finances property project

The joint stock commercial VPBank will provide property developer Nam Long Investment Company with a five-year loan worth VND300 billion (US$14.3 million).

The money will finance the construction of Ehome 4 Bac Sai Gon, a 12.5-ha project comprising townhouses, villas and apartment buildings in HCM City's neighbouring Thuan An District of Binh Duong Province.

Shrimp prices up in Tien Giang

Prices of tiger and white-legged shrimp in Tien Giang Province have been on the rise over the past month, bringing big gains to farmers.

Unprocessed tiger prawn is now sold at VND220,000 per kilo of 30 units and VND180,000 per kilo of 40 units, up VND40,000 and VND20,000 respectively against last week.

Meanwhile, white-legged shrimp has marked up VND5,000-8,000 to VND95,000-98,000 per kilo of 100 pieces, said Phan Van Phuc, a shrimp trader in Vam Lang Town in Tien Giang’s Go Cong Dong District.

The shrimp crop is coming to an end, so output is falling. However, the demand for shrimp among processors is surging, but supply by shrimp-exporting countries is running short, sending domestic shrimp prices up.

Nguyen Van Thanh, a farmer with a 3,000-square-meter shrimp farm in Tien Giang’s Tan Phu Dong District, said: “Tiger prawns raised in my farm have reached the grade of 30 units per kilo with an estimated output of over 1.5 tons.”

“On Thursday, traders offered a price of VND220,000 a kilo for on-site purchases. This price, after cost deduction, brings a profit of some VND180 million, helping me offset the losses previously caused by massive shrimp deaths and continue farming next year.”

The production cost is now over VND100,000 a kilo, while each kilo of white-legged shrimp costs VND70,000, said farmers in Tien Giang.

With an average output of five tons per hectare of tiger prawn and 8-10 tons a hectare of white-legged shrimp, farmers can earn VND300-500 million from each hectare of tiger prawn and VND200-250 million per hectare of white-legged shrimp.

According to the Tien Giang Sub-Directorate of Fisheries, the total shrimp farming area in the province is more than 5,000 hectares, including some 1,300 hectares of intensive and semi-intensive tiger prawn farming, nearly 1,700 hectares of white-legged shrimp farming and around 2,000 hectares of advanced extensive shrimp farming.

Some 3,300 hectares, or 65.2% of the total area, have been harvested with an output of over 11,000 tons.

Timber imports from U.S. rise sharply

Imports of timber and wooden products from the U.S. in the year to end-November had picked up 33% year-on-year, which importers and distributors have attributed to higher demand of local wood processors.

In the first 11 months of this year, timber and wooden product imports reached more than US$182 million, a surge of 33% over the same period last year, according to the General Department of Customs.

A representative of Thien Thanh Phat Co., a timber trader, said the demand for materials of wood processors and woodwork exporters had leapt sharply in the last few months. She estimated growth at around 30%.

The most imported item was poplar, with a turnover of US$67.68 million in the first 10 months, up 45% year-on-year, followed by oak with a total bill of US$50.67 million.

The U.S. is one of the largest timber suppliers to Vietnam. Because the U.S.’s requirements for timber traceability and legality are stringent under the Lacey Act, local wood firms prefer wood materials from the U.S. to avoid troubles.

Large output and variety of categories have also made the U.S. a major timber supplier of wood processors in Vietnam.

In the first 11 months, exports of timber and wooden products brought in US$4.21 billion, an increase of 19% against the same period last year. The U.S. is the biggest importer of Vietnamese wood products with a turnover of US$1.63 billion, up 27%.

The Ministry of Industry and Trade has predicted the demand for wood products of the U.S. market would grow in the coming time because the U.S. property market has shown signs of  recovery. This will push up timber prices next year.

Meanwhile, in the January-November period, timber and wood product exports to China, Japan and the EU reached US$655 million, US$607 million and US$564 million respectively, up 1%, 13.7% and 8.5% year-on-year.

Xmas market heating up, but low sales

The market for Christmas gifts and decorations becomes increasingly vibrant as the holiday draws near but many people are unwilling to spend big.

Since early December, the colour red has adorned most of Hanoi's streets such as Luong Van Can, Hang Ma, and Hang Can that sell seasonal Christmas goods.

Children are especially keen on varieties of colourful toys like masks, bows, action figures, and cars.

Shopkeepers report that prices have increased 10–15 percent compared to last year because of a sharp rise in material costs.

In Hang Ma street, the cheapest small pine tree sells for VND50,000 while the larger ones with no decorations are listed between VND150,000–VND600,000 each.

The price of Santa Claus figures ranges from VND300,000–VND500,000, children Santa costumes are VND40,000–VND250,000, and adult Santa costumes from VND100,000–VND300,000.

Laurel wreaths can be bought for VND30,000–VND150,000 while a set of decorative lights costs VND40,000–VND300,000. Most small Christmas tree decorations sell for VND10,000 each.

Most of the visitors to these streets are only to watch and inquire into product prices, and young people gather for photographs.

Nguyen Thi Sang, from the Hanoi University of Science and Technology, said the 2012 market lacks new, eye-catching products.  A majority of what is on offer comes from previous years.

The economic recession is to blame, forcing businesses and families to  economise, forgo luxuries, and instead make do with older purchases accentuated by smaller, newer decorative additions.

Cashew exports target US$4 billion by 2015

The Vietnam Cashew Association (VINACAS) has set a 2013-2015 export target of over US$4 billion, equivalent to US$1.4-1.5 billion each year.

To fulfill its goal, the association’s member enterprises need to focus on traditional markets including the US, EU, China and Australia, VINACAS said at its meeting in HCM City on December 21.  

They also need to promote their presence in the Middle East, East Europe, North Asia and ASEAN nations.

The association advised its members to enhance their quality of service, increase direct sales to importers and distributors, participate in trade and investment promotion activities, and improve their proficiency in foreign trade and export payment.

In addition, VINACAS proposed Government support, including short- and middle-term loans totalling VND43 trillion to buy raw cashew materials in the 2013-2015 period, a 0.5 percent decrease in material import tax, and a tax payment extension of 6-12 months for raw cashew imports.

VINACAS forecasts many export difficulties in 2013, including technical and trade barriers from import countries, requiring the sector to thoroughly supervise their production process and renovate their technology to meet market requirements.

Vietnam has been the world largest exporter of cashew nuts for seven consecutive years. In 2012, it shipped 220,000 tonnes abroad, earning US$1.45 billion.

Vietnamese cashew nuts are available in more than 100 countries and territories. The US is the biggest market with 35 percent of Vietnam’s exports. It is followed by China and the EU with 20 percent each.

A milestone in Vietnam-RoK relations

Twenty years ago on December 22 Vietnam and the Republic of Korea officially established diplomatic ties, marking a turning point in bilateral relations.

In a recent interview granted to the Vietnam Investment Review, Foreign Minister Pham Binh Minh said the past 20 years have seen Vietnam-RoK relations develop fruitfully in various areas, spanning politics, investment, and trade to cultural and people-to-people exchanges.

In 2009 the two countries decided to establish a strategic cooperation partnership, opening up opportunities for more expansive cooperation in the future.

Annual two-way trade has grown and flourished over the years, increasing from US$500 million in 1992 to US$18 billion in 2011. If this stable growth is maintained, bilateral trade value is expected to reach its US$20 billion target ahead of the 2015 deadline.

The RoK is the fourth largest trade partner and the 8th largest importer of Vietnam. It consumes key Vietnamese commodities including seafood, garments, footwear, timber furniture, and farm produce.

Many major RoK companies like Samsung, LG, Hyundai, Posco, Lotte, Doosan, Kumho, Daewoo, SK, and CJ have successfully and efficiently undertaken operations in Vietnam.

Samsung-funded mobile phone manufacturing project valued at US$1.5 billion in Bac Ninh province is a case in point. In 2011 the plant earned US$6 billion from its exports, accounting for more than 80 percent of the province’s export earnings. It aims to record US$10 billion from exports in 2013, which would make Samsung Electronics Vietnam (SEV) the biggest exporter in the country.

During the past 20 years, RoK investments in Vietnam have increased by 240 times. More than 3,000 RoK businesses have invested in Vietnam with a total registered capitalisation of nearly US$25 billion, ranking second amongst foreign investors in the country. They operate in 47 out of 63 provinces and cities across the country, and in 18 of its 21 economic sectors.

RoK investment is focused on the processing and manufacturing industries (with 1,897 projects accounting for 49.5 percent of total registered capital), real estate (with 78 projects and 27.6 percent), and construction (with 413 projects and 8.6 percent).

RoK-invested businesses are expected to contribute 10 percent of Vietnam’s 2012 export total.  

Foreign Minister Minh attributed the flourishing trade to the reliably close political ties between Vietnam and the RoK over the years, creating an environment where the two governments, business communities and peoples have been able to strengthen bilateral trade, economic and investment relationships,

Vietnam and the RoK notably began free trade agreement (FTA) negotiations this year. Once the pact is signed, it will offer numerous opportunities for the two countries to use and consume each other’s products. The RoK’s temperate farm produce will be available in Vietnam, while Vietnam’s tropical farm products will enter the RoK market.

Vietnam is currently implementing its 2011-2020 socio-economic development strategy, offering a host of opportunities for RoK businesses to invest in the electronics, automobile and machinery manufacturing industries.

Tra fish recognised by Sweden and Denmark

Sweden and Denmark have recognised Vietnamese tra fish as being raised in accordance with international sustainable development standards.
    
The Ministry of Industry and Trade (MoIT) cites information posted on Sweden’s website (www.wwf.se) and Denmark’s website (www.wwf.dk) that have revised their Fish Guides, including Vietnamese tra fish on their “green list”.

Vietnamese tra fish has been removed from the Norwegian “grey list”, but still requires certification from the Aquaculture Stewardship Council (ASC).

Due to inadequate information, the North European World Wildlife Fund (WWF) had previously used its “red list” to warn consumers Vietnamese tra fish breeding harms the environment.

Air route network to connect ASEAN heritage sites

National flag carrier Vietnam Airlines is building an air route network connecting almost all of UNESCO recognized heritages sites in Southeast Asia.

Most recently, the airline launched four weekly flights from HCM City to the Indonesian capital Jakarta to facilitate regional travel and tourism. Flights will run on Tuesdays, Wednesdays, Fridays and Sunday, departing HCM City at 10:00 and arriving in Jakarta at 13:45 (local time), using Airbus A321s.

Vietnamese Ambassador to Indonesia , Nguyen Xuan Thuy, said the planned network aims to expand trade, culture and tourism exchanges between Vietnam and other Southeast Asian nations.

Vietnam Airlines intends to add another flight from HCM City to Jakarta from April 2013. Suli Istananing, Vietnam Airlines Head of Sales Agent, said the new flight will encourage Indonesian tourists to visit Vietnam and learn more about Vietnamese culture.

The opening of the Indonesian flights has not only fostered cooperation between the two countries, but also boosted the regional aviation sector’s development, thus contributing to the building of an ASEAN Community by 2015.

HCM City-Kazakhstan air service to be launched

Kazakhstan’s national airline Air Astana has officially announced it will open a direct air route to Ho Chi Minh City on January 2, 2013.

The new service, scheduled to conduct two weekly flights on Wednesdays and Fridays, is expected to promote bilateral trade cooperation and enable more Vietnamese tourists to visit the Central Asia country.

The new route is especially significant considering Vietnam’s accelerated non-tariff negotiations with the Customs Union of Russia, Belarus, and Kazakhstan.

Air Astana has selected Vietway Aviation Company as its official agent in Vietnam, in charge of ticket sales, promotion, and market development.

The airlines is offering a 30 percent discount to passengers who book tickets before January 1, 2013.

Vietnam, RoK ink US$1.2 bln loan deal

The Republic of Korea (RoK) will provide a US$1.2 billion preferential loan for Vietnam’s development in 2012–2015.

An agreement to this effect was signed by Vietnamese Minister of Planning and Investment Bui Quang Vinh and RoK ambassador to Vietnam Ha Chan Ho in Hanoi on December 21.

The loan will be used to support the implementation of projects and programmes in high priority areas that include transport, water supply and drainage, renewable energy, information technology, health care, human resource development, agriculture and rural development.

Vinh said that the Vietnamese Government highly values development aid and other forms of economic cooperation provided by RoK, and will use the aid effectively.

Ho said RoK will increase cooperation with Vietnam on a larger and more comprehensive scale, with development aid going to projects that Vietnam is in need.

Between 2008 and 2011, the RoK Government provided Vietnam with US$1 billion in preferential loans, the majority of which were channeled into 28 projects in the country.

Developing high-quality tea for export

The Central Highland province of Lam Dong hosted an international conference on December 21 to discuss ways of increasing Vietnamese tea quality.

The event was part of Lam Dong’s 4th Tea Culture Week, an initiative promoting safe tea production and Vietnamese tea brands.

Representatives from the world tea exporters’ organisation known as IGG suggested diversifying tea products, expanding markets, and improving tea quality.

To this end, tea growers, businesses, scientists, and State management agencies should all work more closely and support each other, they said.

Nguyen Thi Anh Hong, Secretary-General of the Vietnam Tea Association said 70 percent of tea farmers are using traditional tea growing techniques. More than 50 percent are being or have been trained to grow tea trees sustainably.

Only 30 percent of Vietnamese tea products, however, receive certificates of quality, she noted.

Hong emphasised the industry’s need to apply the Vietnamese Good Agricultural Practices (VietGap) guidelines, invest in new varieties, and embrace modern technology in tea growing and processing.

At present, Vietnam is among the world’s top five tea exporters and ranks second in terms of green tea production.

With a total cultivated area of 124,000 hectares, the country produces 210,000 tonnes of tea annually, 76 percent of which is exported, and earns US$243 million. Major importers of Vietnamese tea include Pakistan, Taiwan, China, Indonesia, Russia, Afghanistan, the US, Iran, Poland, and Malaysia.

Hanoi’s December CPI rises by 0.26 percent

Hanoi’s consumer price index (CPI) increased slightly by 0.26 percent in December, up 6.29 percent compared to the same period last year.
    
The figures were released by the municipal Statistics Department on December 21.

The city’s 2012 CPI represents a year-on-year rise of 8.57 percent, mostly due to the sharply elevated prices of education and healthcare services.

Excluding the 0.56 percent ebb in post, telecommunications and transport service prices, almost all commodity groups experienced a rise on the previous month. Prices of footwear and garments recorded the highest increase (1.6 percent), followed by home appliances, tourism services, and construction materials.

CPI declined in only three months of 2012 with 0.03 percent in April, 0.17 percent in June, and 0.29 percent in July. September CPI hit the record high of 2.47 percent thanks to a price surge in education services.

Cong Xuan Mui, Director of the municipal Statistics Department, said Hanoi is facing a fuel and material input price hikes as inflation and interest rates continue to rise.

Although business operations have encountered numerous challenges caused by the global market’s fluctuations, Hanoi successfully maintained its growth rate in accordance with the set annual target, he added.

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