New RoK rules bring challenge, opportunity to Vietnam’s farm produce

The full introduction of the Republic of Korea (RoK)’s positive list system (PLS) for agricultural chemical residues in foods is not only a challenge for Vietnam’s farm produce but also an opportunity for the country to improve its product quality to access tougher markets.

Le An Hai, Deputy Director of the Ministry of Industry and Trade (MoIT)’s Department for Asian – African Markets, told a workshop held by the MoIT and the Korean Ministry of Food and Drug Safety (MFDS) in Ho Chi Minh City on June 21 to update Vietnamese businesses operating in agricultural production and export on the PLS.

The RoK introduced the PLS for imported nuts and tropical fruits in December, 2016, and the country plans to implement the PLS for all agricultural products starting from January 1, 2019, said Kwon Chan-hyeok, a representative from the MFDS. 

All agricultural products and processed food imported into the RoK or produced, processed, distributed or sold in the country are subject to the PLS, excluding commodities used for purposes other than food, such as medicinal herbs, according to the MFDS.

The RoK is among Vietnam’s big agricultural product buyers. The RoK’s imports of Vietnamese agricultural, forestry and fishery products rose from 700 million USD in 2015 to 1.8 billion USD last year, representing 3.4 percent of the Korean purchases of farm produce from overseas, Hai noted.

To maintain a foothold in the Korean market and made full use of the Vietnam–Korea Free Trade Agreement (VKFTA), he urged Vietnamese farmers and exporters to swiftly adapt themselves to the new requirements.

He also advised the firms to regularly get updates on the new requirements and policies for imported goods from their foreign markets; and invest more in applying advanced technology in production and use pesticides more wisely to ensure food safety and sustainable development.

Some exporters attending the event voiced the necessity to properly control the use of pesticides from the agricultural production to distribution. To this end, they will need cooperation of all those involved like farmers and wholesale buyers. 

In addition, the government must also take tougher actions to effectively control the use of pesticides.

Disqualified food imports will be sent back or discarded so the Korean side recommended that, to avoid this situation, Vietnamese farmers and exporters should check the maximum residue limits authorised by the RoK prior to the use on the website: www.foodsafetykorea.go.kr/foodcode. 

Solutions sought to strengthen customs-business community partnership

Stronger connectivity between customs agencies and the business community has helped foster mutual understanding, Vice Director General of the General Department of Vietnam Customs Mai Xuan Thanh stated at a seminar in Hanoi on June 21.

Thanh said that over the past years, custom agencies at all levels have held many dialogues with businesses, which have become effective tools to deal with disputes among parties.

Consultations between customs and businesses have also been organised with the participation of specific groups of enterprises, he said.

Along with promoting partnership with the business community, over the past year, the Vietnam Customs has paid due attention to setting up collaboration with business associations. 

So far, customs agencies have signed agreement deals with 232 enterprises on building regular partnership, along with 1,701 commitments with enterprises in supporting and supervising law enforcement, and 52 cooperation deals with business associations.

Nguyen Hoai Nam, Vice President of the Vietnam Association of Seafood Producers and Exporters, said that businesses considered customs agencies as their partners.

“We are often asked for opinions on new documents before they are issued,” stated Nam.

Thanh showed his hope that businesses will continue actively cooperating with customs agencies and make contributions to the agencies’ operations.

He asked for opinions from enterprises on solutions to improve the custom sector’s performance.

Business associations should also promote communications with the business community to give them clearer understanding on the operation, role, responsibilities and efforts of the custom sector in reforming and modernising, thus benefiting the business community and strengthening understanding between the two sides.

Ha Long city to host 10th international cashew nut conference

The 10th Vinacas Golden Cashew Rendezvous will take place in Ha Long city, the northeastern province of Quang Ninh, in October, according to the Vietnam Cashew Association (Vinacas).

Nearly 500 businesses from 50 countries and territories are expected to participate.

Vinacas will hold bilateral exchanges and dialogues among domestic and foreign cashew nut enterprises along with a workshop on the sector’s development vision and strategies, a seminar on cleaner production of cashew nuts for the public health and a forum on the quality of imported raw cashew nuts.

The conference aims to support trade exchanges and promotion for businesses and help them expand markets as well as increase incomes for farmers.

In 2018, the cashew nut sector aims to cut volume while increasing quality to reach the export target of more than 3.7 billion USD, about 65 percent of global export value.

Vinacas forecast the sector will enter a new period of development in 2019 with the building of a production value chain and deployment of measures to increase quality, trace of origin of products, and deep processing, and develop the domestic market to raise the trade value of the sector to 4 billion USD.

The first Vinacas Golden Cashew Rendezvous was held in the southeastern province of Binh Phuoc in 2008. Two years later, Vietnam became the world’s leading exporter of cashew nuts.

Vietnam exported 141,000 tonnes of cashew in the first five months of 2018, raking in more than 1.39 billion USD, according to the Foreign Trade Agency under the Ministry of Industry and Trade.

The figures showed a rise of 21.4 percent in volume and 25.3 percent in value year-on-year.

In May alone, 35,000 tonnes of cashew were exported with revenue of 330 million USD, up 8.8 percent in volume and 6.4 percent in value compared to the previous month. 

Export cashew price hit an average of 9,867 USD per tonne in January-May, up 3.2 percent year-on-year.

Vietnamese cashew is sold in more than 90 countries and territories. The country achieved its highest-ever cashew exports in a year in 2017 with 353,000 tonnes of cashew kernels exported for 3.52 billion USD, a year-on-year increase of 1.9 percent in volume and 23.8 percent in value.

Vietnamese goods introduced at int’l trade fair in South Africa

Vietnamese enterprises are displaying their products at the 25th South African International Trade Exhibition (SAITEX), which began in Johannesburg of South Africa on June 24. 

As the largest trade fair in Africa, the event features nearly 400 enterprises from 36 countries. It is expected to draw thousands of visitors. 

Ngo Khai Hoan, Deputy Head of the Department of Africa, West Asia and South Asia Markets under the Ministry of Industry and Trade (MoIT) said Vietnam’s attendance at the event is hoped to help expand trade ties between Vietnam and South Africa. 

South Africa is a key market and the most important trade partner of Vietnam in Africa, he said. 

Although two-way trade currently stands at only 1 billion USD, the potential for expanding trade between the two sides is huge, Hoan stressed.

Beside introducing Vietnam’s traditional products such as coffee, rice, textiles and construction materials, Vietnam, for the first time, has brought high-tech medical products used for cardiology. 

According to Dao Manh Duc, head of the Vietnamese Trade Office in South Africa, South Africa and other African countries are potential markets for Vietnam’s commodities of various sectors. 

There are more and more successful transactions between Vietnamese businesses with African partners, he said, adding that the SAITEX offers a chance for Vietnamese firms to learn about the demand of the African market, and to seek business opportunities and set up partnerships. 

On the occasion, the MOIT’s trade promotion delegation led by Hoan and representatives from the Vietnamese Embassy will have working sessions with those from the ministries of mining, industry and trade,  foreign affairs and health of South Africa to seek to enhance trade bonds between the countries. 

Seminars themed “Doing Business with Vietnam 2018” will be held in Johannesburg on June 26 and Cape Town on June 27, offering chances for the two countries’ enterprises to understand more about operating in the Asian country.

Bình Dương expands production of specialty mangosteens

Local authorities in Bình Dương Province’s Thuận An Town are taking steps to promote the area’s famous Lái Thiêu mangosteen, a fruit specialty cultivated since the 19th century in the southeastern province.

Thuận An Town’s Lái Thiêu Ward was the first area in the province to grow the fruit, which offered high profits for farmers, according to Trần Ngọc Phương, chairwoman of the town’s Farmers Association.

However, since 2010, many mangosteen orchards have declined in yield, quality and area.

In Thuận An, areas devoted to mangosteen are mostly in Lái Thiêu, An Thạnh, Hưng Định and Bình Nhâm wards.

In 2010-13, the Thuận An People’s Committee conducted a survey on creating a registered collective brandname for Lái Thiêu mangosteen. In 2013, the National Office of Intellectual Property granted the specialty fruit a certificate as a collective brandname.

The Thuận An Town Farmers Association has the right to use the collective brand for its mangosteens.

After the brandname was granted, mangosteen orchard owners organised clubs and co-operatives and encouraged members to use the same planting techniques.

With these activities, the town’s mangosteen area expanded to 680 ha last year from 660ha in 2015.  

Trần Văn Viễn, director of the An Sơn Commune Agricultural Service Co-operative in Thuận An, said the commune accounts for 70 per cent of the town’s mangosteen area.

Recently, the cooperative had to turn down an order from a supermarket for one tonne of mangosteens a day because supply could not meet demand.

Seven of the cooperative members use Vietnamese Good Agricultural Practice (VietGAP) standards.

Last year, An Sơn Commune produced about 60 tonnes of mangosteen, which was just enough for the province’s market.

The Thuận An Town Farmers Association has set up a board to monitor the use of the Lái Thiêu mangosteen collective brandname. It is also working with local agencies to draw up regulations for the association members to follow.   

To promote the brand, the association will deliver leaflets about the fruit during the annual ripe-fruit season festival, said Phương, chairwoman of the Thuận An Town Farmers Association.

This year, the festival is being held in Thuận An on June 16-22. 

Trần Văn Đồng, who owns a 1.6 orchard that plants Burmese grapes and mangosteen in Thuận An’s An Thạnh Ward, said his orchard had yielded 20 per cent more than last year.

This year he did not sell his fruit to traders, but sold directly to consumers to earn higher profits, he said. Mangosteens sold out quickly because of high demand.

Binh Phuoc ethanol plant to resume operation

The National Oil and Gas Group (PetroVietnam) said it is coordinating with relevant partners to prepare for the resumption of Binh Phuoc Ethanol Plant in the southern province of Binh Phuoc.

According to Bui Ngoc Duong, who is in charge of PetroVietnam’s Gas & Oil and Gas Processing Department, shareholders - Toyo Thai New Energy, PetroVietnam Oil Corporation (PVOIL), and Licogi 16 Joint Stock Company (Licogi 16) - have contributed the lacked capital to prepare for the re-opening of the plant. 

In addition, the joint-venture contractor VSP-Licogi 16 has completed the maintenance and repair in the first stage, making it ready for resumption.

Regarding the recruitment and training of human resources, the project’s investor - the Orient Bio-Fuels (OBF) Co., Ltd. recruited key personnel as well as carry out training courses to serve the maintenance, repair and operation of the plant.

PVOIL and OBF also negotiated a contract for product consumption. Accordingly, PVOIL will advance money, which will be used by OBF as floating capital to buy materials for production.

The Binh Phuoc Ethanol Plant started its operation in April 2012 and produced over 16,000 cu. of ethanol. The production was then stopped because of business losses caused by difficulties in product consumption. 

PVOIL - a subsidiary of PetroVietnam, contributed 29 percent of the project’s capital, while Toyo Thai New Energy’s capital accounted for 49 percent of the total.

Can Tho sees strong economic performance in first half of 2018

The Mekong Delta city of Can Tho has shown strong socio-economic performance in the first half of 2018 with all indications exceeding the targets.

According to Duong Nghia Hiep, Vice Director of the city’s Department of Industry and Trade, in the first six months of 2018, Can Tho enjoyed 13.5 percent growth in total retail and service revenues to 63.07 trillion VND (2.77 billion USD), equivalent to 53.6 percent of its yearly target.

Earnings from exports and services reached 966.85 million USD, fulfilling 54 percent of the yearly target and representing a rise of 16.37 percent over the same period last year.

Of the figure, goods export revenue was 773.48 million USD, up 20.73 percent year on year.

Can Tho’s key export products included aquatic products (238 million USD), rice (141.2 million USD), farm produce and processed food (nearly 70 million USD) leather (42.5 million USD), fertilizer (12.2 million USD), pharmaceuticals and veterinary drugs (11.9 million USD).

Meanwhile, earnings from services hit 193.37 million USD, an increase of 1.67 percent over the same time last year.

The city’s import revenue in the first six months of this year was 227.65 million USD, reaching 56.9 percent of its plan for the year, and representing a rise of 31.5 percent year on year. Can Tho mostly imported materials for production.

In the rest of the year, the city will continue calling on local firms to engage in a programme to sell Vietnamese products in rural areas, industrial parks and residential areas.

The province will also organise Vietnamese goods fairs across the city, while continue seeking measures to support local firms in boosting production and exports.

Dong Thap strives to turn mango into key export product

The Mekong Delta province of Dong Thap, the largest mango producer in the region with 9,200 hectares of mangos and a annual output of nearly 100,000 tonnes, is working to turn mango into a sustainable hard currency earner by 2020.

According to Nguyen Thanh Tai, Vice Director of the provincial Department of Agriculture and Rural Development, as part of efforts to boost mango production, Dong Thap has invested in improving technology infrastructure, dyke system and farming technology towards global agricultural practice standards (GAP) as well as post-harvest industry.

Two mango farming areas with a combined area of 33 hectares in Cao Lanh district and Cao Lanh city have reached GlobalGAP standards, while two others with a total area of over 48 hectares have met VietGAP standards.

So far, Dong Thap has developed six safe mango production areas in Cao Lanh district and Cao Lanh city with total area of over 416 hectares.

Local farmers have also had higher awareness of applying technological advances in farming. Over 80 percent of mango output has been bought in large amounts.

Meanwhile, the province has registered intellectual property for its Cat Chu Cao Lanh and Cao Lanh Mangos brands.

Tai added that the province has been successful in providing mango throughout the year instead of just one season.

However, Nguyen Phuong Tuyen, head of the Office for Technology and IT Research under the provincial Department of Agriculture and Rural Development, said that in the coming time, the province will not expand mango farming areas but focus on investing in storing and processing stages to enhance the value chain in mango production.

Under contracts signed more than two years ago, each month, Dong Thap has exported 100-200 tonnes of mangos to Japan, the Republic of Korea, Hong Kong (China) and New Zealand.

Prof. Dr. Tran Van Ha from Can Tho University advised Dong Thap to foster connectivity among farmers and between farmers and enterprises in boosting mango production, one of the key pillars in the province’s agricultural restructuring strategy.

Meanwhile, Prof. Dr. Nguyen Bao Ve, former head of the Agriculture Faculty of Can Tho University asserted that Dong Thap should manage nutrition for mango trees to improve mango quality, while focusing on diversifying mango products to meet market demands.-

Cement development strategy must ensure balance

The development strategy of the cement industry by 2030 towards 2050 would ensure a balance between the supply and demand for cement.

This is because the cement industry will have more supply with more cement factories being operational this year.

The strategy would be built based on the cement industry’s development over the past years, according to directions for the development of the cement industry by Deputy Prime Minister Trinh Dinh Dung.

The Vietnam Cement Association reported Vietnam has 83 cement production lines with a total capacity of 98.56 million tonnes. This capacity will continue to increase because the country is expected to have some cement production lines coming into operation this year with a total capacity of 10.1 million tonnes.

With those projects, the design capacity of Vietnam’s cement industry will be some 108.66 million tonnes.

The association said the actual production capacity of the cement industry can reach 120 million to 130 million tonnes per year. Meanwhile, in the plan, the total consumption of cement is expected to be 93 million tonnes by 2020. Therefore, the industry will have excessive supply of some 25 million to 30 million tonnes.

According to building material experts, there is a contradiction that while some new factories are set up or some existing ones are expanding production, some cement companies could not sell their products.

To deal with this situation, the association and the cement manufacturers have proposed that the Government and the Ministry of Construction should delay the investment in building cement factories during the period between 2019 and 2025.

The cement production lines coming into operation this year include production line 3 and 4 in the second phase at the Vissai Group’s Song Lam Cement Company, with a total capacity of 3.8 million tonnes per year, Ha Tien Kaitian Cement of Thai Group with a capacity of 4.5 million tonnes and Tan Thang Cement Company in Nghe An province with a capacity of 1.8 million tonnes per year.

Ha Long forum seeks to promote green economy, tourism

A forum was underway in Ha Long city, the northern province of Quang Ninh, to seek measures to promote the sustainable development of green economy and tourism.

The event on June 23 and 24 is organised by the Quang Ninh provincial Department of Tourism and the institute for communication and cultural studies under the Ministry of Culture, Sports and Tourism.

It attracted about 200 participants, including officials of the culture, environment and foreign ministries, domestic and foreign economic experts, and businesses in the tourism industry.

They discussed policies for sustainably developing economy and tourism, solutions to develop green economy and tourism, Japan’s experience in the field, support for small-and medium-sized enterprises to use green production technologies, and investors and businesses’ role in developing green tourism sustainably.

Le Doan Hop, Director of the institute for communication and cultural studies, said green tourism helps protect the nature and culture. The development of green tourism has been generating enormous economic benefits and creating chances to increase jobs and income for local communities, especially in remote areas which are home to nature reserves and attractive landscapes.

Green tourism has also helped improve people’s knowledge and health through environmental, cultural, historical and leisure activities, he added.

Other participants highlighted the need to use natural resources reasonably, reduce waste from tourism activities, apply environmentally friendly technologies in creating tourism products, and prioritise eco-tourism. They also looked into effective solutions to promote green economic and tourism development amid globalisation.

At the forum, the organising board is set to honour the outstanding groups and persons in economic and tourism development.

Participants will also tour some green economic-tourism sites in Quang Ninh province.

The event is an activity in response to the National Tourism Year 2018, which centres on Quang Ninh and its Ha Long city.

HCM City seeks to improve growth quality, economic competitiveness

Experts proposed a number of measures to improve the quality of growth and competitiveness of the economy in Ho Chi Minh City at a seminar on June 23.

According to Professor, PhD Nguyen Trong Hoai, Vice President of the University of Economics, said the southern metropolis should promote effective and innovative economic models while targeting long-term goals by making efficient use of resources such as technology, infrastructure and institution.

Simultaneously is improving performance management (including activities which ensure that goals are consistently being met in an effective and efficient manner) by using information and communication technology for public transactions as well as investing in human resources.

The city needs to expand connectivity and development space via improving infrastructure networks for satellite urban areas, restructuring production and business, and training highly-skilled workers for sectors that the city has been and will prioritise to develop.

Professor Nguyen Thi Canh from the Center for Economic and Financial Research under the University of Economics and Law held that it is necessary to focus on such factors as investment capital, investment structure, high-quality labour training, and market development to increase the total factor productivity (TFP) for economic growth.

She suggested attracting investment in intensive development projects and pushing ahead with technological reform. At the same time, it is important to have policies to support more effectively capital for small-and-medium-sized enterprises (SMEs).

The southern economic hub should also prioritize hi-tech investment projects to reduce labour-intensive industries, she added.

She highly recommended the development of support industries and other key industrial sectors towards improving investment efficiency and reduction of import costs.

She also suggested building a coordination mechanism between enterprises, administrative agencies, training facilities, universities, colleges and vocational training centers to improve the quality of human resources.

PhD Luong Van Khoi from the National Centre for Socio-Economic Information and Forecast under the Ministry of Planning and Investment highlighted the private economic sector; institutional reform and business environment; and science-technology and labour productivity as core contributors to the city’s economic growth.

Therefore, the city needs specific strategies and policies to increase productivity for businesses and build a global value chain with major enterprises playing the leading role, he proposed.

Another solution is enhancing the connectivity between HCM City and proximate localities to expand development potential and optimise advantages of the whole region, experts suggested.

Local authorities should propose a mechanism to boost connectivity in the southern key economic region – which HCM City will play a central role in terms of finance, high technology and trade.

The application of this mechanism will help the city and other southern localities to build a value chain of goods, especially industrial and agricultural products.

Secretary of of the municipal Party Committee Nguyen Thien Nhan said the programme to improve growth quality and economic competitiveness is one of the seven breakthrough programmes of the city to meet the demand of integration in 2016-2020.

He added that there are still a lot of resources for the local development such as land, scientific and technical staff, and the capital attraction capacity.

HCM City maintained annual average growth of 8.2 percent in 2015-2017, according to Director of the municipal Department of Planning and Investment Su Ngoc Anh.

Dong Nai’s first half FDI attraction nearly meets yearly plan

The southern province of Dong Nai attracted 902 million USD in foreign direct investment (FDI) in the first six months of the year, accounting for over 90 percent of the yearly plan and up 48 percent from the same time in 2017.

According to the provincial Department of Planning and Investment, investment licenses were granted to 54 FDI projects with total registered capital of over 420 million USD. Meanwhile, there were 49 projects asking to increase their investment capital. 

Most of the projects are in line with the province’s policy which is attracting high-tech projects, support projects, and those which are friendly with the environment.

The FDI inflow came from the Republic of Korea (RoK), Taiwan (China), Japan, China, British Virgin Islands and Germany.

Large projects included a 40-million-USD Hi KNIT Co., Ltd project developed by RoK investor at Nhon Trach industrial park, a 33-million-USD Air Manufacturing Innovation Vietnam project by Dutch investor at Giang Dien industrial park, and a 32-million-USD DH Logistic Property Vietnam Co.,Ltd project by Singaporean investor at Loc An-Binh Son industrial park.

Projects increasing investment capital were Dutch Bosch Gasoline Systems-HCP project at Long Thanh industrial park, Singaporean OPV pharmaceutical JSC project at Bien Hoa II industrial park, and Japanese SMS Manufacturing Vietnam Co.,Ltd project at Long Duc industrial park.

The department said that the province is currently home to 1,804 FDI projects with total registered capital of 32.76 billion USD, of which there are 1,335 valid ones valued at 27.68 billion USD.

Dong Nai has attracted FDI projects from 45 countries and territories so far, of which the Rok, Taiwan and Japan are leading investors.

Property developer Vingroup to pay shares for 2017 dividend

Property developer Vingroup plans to issue nearly 554 million shares to pay a 21 percent dividend to shareholders for 2017.

The share issuance is scheduled for the second or third quarters of 2018.

Funding for the shares will be drawn from the firm’s accumulated post-tax profit recorded in the 2017 financial year.

Vingroup recorded 89.3 trillion VND (4 billion USD) in total revenue and 5.65 trillion VND in post-tax profit in 2017, up 55 percent and 27 percent on-year, respectively.

Vingroup will increase its charter capital to 31.9 trillion VND from the current 26.37 trillion VND after the share issuance.

In the first quarter of 2018, Vingroup posted 29 trillion VND in revenue and 1 trillion VND in net profit, yearly increases of 84 percent and 70 percent.

For 2018, the company has set a target of 120 trillion VND in net revenue, up 34 percent from last year, and 8.5 trillion VND in net profit, up 50 percent.

Vingroup has more than 2.63 billion shares on the HCM Stock Exchange under the code VIC, which ended Friday at 122,800 VND per share.

Value chains idea contest launch to support ethnic minorities

The “Value Chains Idea Contest” (VCIC) was launched in Hanoi on June 22 with the aim of supporting ethnic minority communities in Vietnam.

The contest was organised by the Vietnamese Government’s Committee for Ethnic Minorities Affairs, the World Bank and the Australian Department for Foreign Affairs and Trade.

The VCIC aims to support the development and implementation of new and innovative ideas regarding value chains and expanding market access opportunities for products of ethnic minorities in Vietnam. 

It is also meant to contribute to the preservation and promotion of cultural strength and traditional knowledge of Vietnamese ethnic minority communities while enhancing the role and capacity of ethnic minority women and youth in escaping poverty and bringing prosperity to themselves and their communities.

The VCIC is part of series of activities of the Committee for Ethnic Minorities Affairs and international partners, media partners, and Party and Government agencies to help ethnic minorities to catch up with the national start-up trend, thus contributing to poverty reduction and boosting prosperity in ethnic minority areas.

Eligible candidates include individuals, groups of individuals, small and medium enterprises, cooperatives, cooperative groups, and entrepreneurs of ethnic minorities with ideas for developing cooperation or partnerships with ethnic minorities anywhere in Vietnam.

The ideas should contribute to solving one or both of the following issues: developing value chains benefiting ethnic minority people, and creating an enabling environment for the development of value chains which benefit ethnic minorities, especially women and youth.

In Round I of the contest, ideas should be submitted by the end of August 31, and a maximum of 50 ideas will be selected and announced on October 1.

In Round II, authors of shortlisted ideas will be provided with training and support so their ideas can be developed into project proposals. Deadline for proposals is December 15. Selected proposals will be announced on January 18, 2019.

Candidates with project ideas selected in Round I will receive support and consultancy from experts to develop and finalize a detailed project proposal to submit in Round II. Projects selected in Round II will receive funding for implementation.