Long Thanh Airport site checked

Field research on the plan for site clearance of Long Thanh International Airport was conducted by a joint mission from the Transport Ministry, the Department of Mineral Resources and Environment of Dong Nai Province and Vietnam Airlines on Friday.

The airport would be located in Long Thanh District's Suoi Dau Commune in Dong Nai Province.

According to the Dong Nai Department of Mineral Resources and Environment, the provincial authorities have mapped out a plan for site clearance compensation for the first phase of the project (2015 – 2035). Total compensation for affected families would amount to VND14 trillion (US$642 million).

All families to be affected by the airport project have agreed to resettle in two new residential areas, Loc An and Binh Son, in Dong Nai's Long Thanh District.

Under the resettlement plans, Dong Nai provincial authorities aim to help residents from families affected by the project to change jobs.

Speaking during the field research, Nguyen Hong Truong, deputy minister for transport, said construction of the airport was an urgent task because transport infrastructure must be developed in advance to pave way for economic development.

He said the Southern Focal Economic Zone, including Dong Nai Province, is the most dynamic region of the country, and an impetus for economic development of Viet Nam.

During a seminar held by the Civil Aviation Authority of Viet Nam (CAAV) in HCM City in April, Lai Xuan Thanh, head of the CAAV, said building an aviation hub or entrepot was a long-term strategic mission of his agency.

The airport would also help resolve issues facing Tan Son Nhat International Airport, including noise, pollution and threats to safety of densely populated urban areas nearby.

Tran Dinh Thien, director of the Viet Nam Economic Research Institute and an enthusiastic backer of the project, said if Tan Son Nhat International Airport in HCM City was expanded to double its size, it would remain a traditional terminal. But the question is moot as expansion is impossible due to its urban location.

"If we want to compete with Singapore and Thailand, we should have a different view on Long Thanh International Terminal. It should not only be a place for transporting passengers; but also a transit point for cargo," said Thien.

Le Manh Hung, general director of the Airport Corporation of Viet Nam, said Tan Son Nhat had a capacity of 25 million passengers a year, but by 2017, it would be overloaded.

Deputy Minister of Transport Pham Quy Tieu said it was imperative to quickly build Long Thanh airport to bolster economic development.

Meanwhile, Dr Tran Dinh Ba, the man who proposed the much-debated straight-line air route between HCM City and Ha Noi, said he was concerned that the new airport's US$18.7 billion cost was too high.

Long Thanh, approved by the Government in 2011, is scheduled to open in 2020 with a capacity of 25 million passengers a year, according to authorities in Dong Nai Province, where the airport is to be built.

To be built in three phases, it is expected to be fully completed by 2035, with a capacity of 100 million passengers.

Construction of the airport project is scheduled to begin this year.

First Hung Yen longan batch to be shipped to US

Farmers in northern Hung Yen province have reason to cheer as their first batch of longan will be dispatched to the United States shortly.

According to Deputy Director of the provincial Department of Agriculture and Rural Development (DARD), Doan Thi Chai, the province has more than 20 hectares of longan granted regional codes for export to the US.

They crop has been grown by over 170 local households in Hong Nam commune in Hung Yen city and Ham Tu commune in Khoai Chau district, and they expect to harvest about 80 tonnes this year, she said.

The official also noted that all coded longan areas will be cultivated under the Vietnamese Good Agricultural Practice (VietGAP) standards in which farmers only use permitted bio-pesticides and keep spray diaries to ensure longan quality and safety.

The farmers have been trained in longan growing techniques and the proper use of herbicides and taught the export procedures required by the US and other overseas markets. They have also been helped by the provincial DARD to monitor plant diseases and pesticide residues.

Hung Yen province has more than 3,000 hectares of longan grown in peak season, two thirds of which are farmed in Khoai Chau, Tien Lu and Kim Dong districts and Hung Yen city.

The province has been working with local growers to build intensive longan farming areas in a bid to improve fruit quality and productivity.

Investment opportunities in Central Highlands region

The Central Highlands holds a strategic position in Vietnam’s socio-economic development, defense, and security.

To maximize advantages and potentials for local socio-economic growth, Central Highlands provinces need to outline special preferential policies and mobilize greater investment resources for sustainable development.

Its climate and terrain have helped the Central Highlands develop a strong agricultural industry, especially industrial crops like coffee, pepper, and rubber.

The Central Highlands is also known as a production zone, preparing vegetables and flowers for exports.

Located in the drainage basin of the Se san, Srepok, and Dong Nai River, the region has a great potential for hydropower development. Its current hydropower volume accounts for 27% of Vietnam’s total capacity.

The region is endowed with rich mineral reserves including bauxite, and gold-ore, and plentiful materials for building, and a temperate climate and natural conditions which are ideal for luxury tourism development.

Tran Viet Hung, deputy director of the Central Highlands Steering Committee, said that the Prime Minister has agreed in principle that the Ministry of Planning and Investment should work with ministries, relevant agencies, and the region’s steering committee to review existing policies and make necessary changes in areas where the Central Highlands is strong. Incentives will be discussed in detail to attract investment to the region’s advantages, including tourism and industrial crops.

Current investment in the region remains modest compared to Vietnam’s total investment capital. Foreign direct investment is still limited in both quantity and quality and mainly focuses on Lam Dong province.

The Central Highlands contributes about 9% of Vietnam’s GDP and the poverty rate is relatively high, especially among ethnic minority groups.

Economists emphasize closer links between scientists, businesses, the state, and farmers to improve the value of farm production.

Applying high tech to production models is another recommendation for the region, especially in key investment fields.

In the future, commercial banks are expected to pour about US$690 million into the region’s key sectors - hydroelectricity, thermo-power, transportation, and agricultural production – to upgrade their production technologies.

Nguyen Kim Anh, deputy governor of the State Bank of Vietnam, gave more details on investment plans for the region.

Anh said the central bank will continue to increase credit investment in Central Highlands provinces, giving priority to agriculture, farmers, rural areas and the region’s advantageous products such as coffee, tea, and rubber. Loans will be specifically prioritized for agricultural production and large-scale agricultural production models using high-tech.

Vu Van Tu, director of Lam Dong province’s Center for Investment, Trade, and Tourism Promotion, said the region is interested in attracting potential investors both at home and abroad.

"Lam Dong has promulgated a series of support policies for investors in the agricultural sector to reduce post-investment interest rate for high-tech agriculture production, and increase construction material production and processing and farm produce processing. We also have a policy to support businesses in brand name development and market expansion,” Tu said.

Japan group registers to buy additional 20.86% stake in electronics retailer

Nojima Corporation, one of Japan's leading electronics retailers, has registered to buy a large number of shares of Tran Anh Digital World JSC (TAG) in an effort to raise its ownership rate to over 30% in the Hanoi-based electronics retailer.

The Japanese firm wanted to add over 3.7 million more TAG shares, equivalent to a 20.86% shareholding, to its stock in a period from May 28 to June 12.

However, the value of the deal has not been revealed by any parties involved.

With the recent move, Nojima Corporation, which currently owns about 1.8 million shares, or a 10.06% stake in TAG, will own 30.92% of the electronics retailer and become its largest foreign stakeholder if the transaction is carried out.

In addition, another foreign shareholder, Aureos Southeast Asia Fund, has registered to sell its entire stake in TAG, or over 3.7 million shares, during the same period.

The Aureos Southeast Asia Fund has been a strategic partner of Tran Anh since 2010.

Thus, if the deal is closed by the two parties, the fund will fully divest from TAG after five years.

Tran Anh Digital World JSC is expanding its network after establishing 15 major electronics shops in the north, and is planning to add 8-9 more stores in the region this year.

In the first quarter of 2015, Tran Anh posted an after-tax profit of VND3.9 billion (US$179,400), up 11.5% over the same period in 2014, equivalent to its profit in the entire year of 2014.

With a profit target of VND7.8 billion (US$358,800), the firm completed 50% of the plan in the first quarter of the year.

Nojima entered Vietnam’s electronics market in 2013 after acquiring a 10% stake in Tran Anh.

Nojima’s move is the second big development in the local electronics retail sector this year after leading Vietnamese property firm Vingroup introduced VinPro electronics shops in March at the Vincom shopping centers it runs in major cities across the country, including Hanoi and Ho Chi Minh City.

Meanwhile VinPro+, offering the same kind of products including high-tech gadgets like smartphones, tablets, laptops, electrical appliances, and other accessories, will fill the places where Vincom is still absent from in many other provinces and cities nationwide.

Vingroup has set a target to bring the total number of VinPro and VinPro+ stores to 25 and 100, respectively, in 2015.

According to market research company GfK, sales of consumer electronics reached over VND116 trillion (US$5.5 billion) in Vietnam last year, the second consecutive year the sector has achieved an annual growth rate of over 20%.

The main engine of growth came from the mobile phone/smartphone segment, with an annual rate of 30%, GfK said.

In 2014, Vietnamese spent nearly VND50 trillion (US$2.35 billion) buying mobile phones/smartphones, equal to 43% of the total spending for all electronic/electric products.

With the overall growth of the market, coupled with the opening of a new series of electronics chains, some firms have announced revenue expansion exceeding the industry’s average in 2014, such as Mobile World (66%), FPT Shop (78%), and Tran Anh (29%).

Aditya Birla Group mulls investment in Vietnam textile industry

Indian billionaire Kumar Mangalam Birla is mulling over a plan to invest in Vietnam to tighten his grip in the textile industry.

A delegation of representatives from the Aditya Birla Group recently began a due diligence visit to Vietnam to evaluate specific investment opportunities in the weaving and dying segments of the industry.

Aditya Birla is the third largest multi-national group in India with nearly 50 subsidiaries operating in the fields of clothing and textiles, financial services, telecommunications in 40 nations around the globe.

Thai Nguyen seeks $2.6 billion in FDI

The northern province of Thai Nguyen has set a target of reaching US$2.6 billion in foreign direct investment (FDI) in 2015, the Vietnam Economic News (VEN) reports.

The on-line newspaper quoted Thai Nguyen Department of Planning and Investment as saying that since the beginning of 2015, the province has seen a four-fold increase in FDI compared with same time last year, as it topped $917.4 million.

In recent years, Thai Nguyen has gained the trust of foreign investors due to its efforts in improving the investment environment. The province now ranks 10th among the country's 63 provinces and cities in terms of attracting FDI, the department said.

In 2014, Thai Nguyen ranked eighth among 63 provinces and cities nationwide, in terms of the provincial competitiveness index (PCI). Many investors have praised the province's legal institutions and business promotion policies.

The report from the Ministry of Planning and Investment's Foreign Investment Agency revealed that as of April 2015, the province had attracted 80 foreign-invested projects with a total registered capital of more than $7 billion. Further, in the past four months the province lured $114.1 million in FDI.

Chairman of the provincial People's Committee Duong Ngoc Long said that his province would always create the most favourable conditions for investors, in term of investment licensing and ground clearance.

Regarding administrative reforms, the province has enacted 20 mechanisms and policies to facilitate investment, notably the application of the "one-stop" shop mechanism in completing administrative requirements.

Regular dialogues between businesses, provincial officials and bankers to ease difficulties for businesses have also been ongoing. As a result, many investors have received preferential loans from commercial banks and benefited from tax policies, according to Long.

Mekong Capital proves attractive

With clear investment strategies and outstanding financial results from its prior equity funds, Mekong Capital has now launched its fourth fund, Mekong Enterprise Fund III.

According to Mekong Capital’s founding partner Chris Freund, the new private equity fund will focus on the company’s proven areas of expertise in retail and restaurants, fast moving consumer goods, pharmaceuticals, and consumer products and services such as education.

“When we invest in these sectors that are clearly our expertise, we can add a lot of value as a shareholder,” said Freund. “We’ve chosen not to focus on other sectors like manufacturing, real estate, infrastructure, or banking as they are outside of our area of expertise.”

Mekong Enterprise Fund III (MEF III) has raised $87 million in the committed capital so far, and the fund is aiming for a maximum of $150 million in the committed capital. It has a 10-year life and is expected to make around 10 key investments.

Unlike the company’s previous three funds where it picked up most of its investors from North America, MEF III has witnessed a notable shift to Asian investors this time around, accounting for 30 per cent of the total investors, followed by 27 per cent and 23 per cent from European and North American investors, respectively, and 17 per cent from the IFC which is a multilateral. Freund said that there seemed to be more Hong Kong and Singapore-based investors investing in private equity funds at present, whilst for the first time, Mekong Capital had some Japanese investors showing great interest and a desire to get involved in investments in Vietnam.

The local economy, in Freund’s view, is gradually improving, and credit growth, in particular, is rather promising. He claimed that this could, in turn, translate into a rising spending power. “As a consumer-driven business, as long as credit growth is happening and is stable, it is all good for consumer spending,” he added.

Freund cited MobileWorld as a successful investee of Mekong Capital. When it first opened back in 2007, MobileWorld had just a handful of locations dotted around the country. Now, however, it has expanded its fleet to 444 stores nationwide, and its growth continues apace at around 20 stores a month for 2015. According to Freund, many of the company’s competitors might say they listen to their customers and are doing what’s best for them, yet they do not use this as their organising principle. “MobileWorld, as a consumer-focused business, has, in fact, no competitors, as the CEO’s point of view is always focused on what’s best for the customers. And if he doesn’t think it’s best for the customers, he will say no, even if it’s good for the company,” stressed Freund.

Mobile World achieved a 40 per cent net profit growth rate in the first quarter of the year compared to the first quarter of 2014.

Local firm wins contract for expanding Tan Son Nhat airport

The Hoa Binh Construction and Real Estate Corporation (HBC) has won the contract for the first phase of the project to expand the T2 International Terminal of Tan Son Nhat International Airport in Ho Chi Minh City.

The airport expansion will be conducted in two stages, with the initial stage set to expand the east wing of the terminal while the building in the west wing will start once the east part is fully operational.

Once the expansion is completed, Tan Son Nhat Airport will be capable of serving about 13 million passengers per year, up 3 million from the current capacity.

The contract, worth 0.6 trillion VND (27.5 million USD), is scheduled to finish in 417 days.

The HBC has constructed several projects, including the construction and expansion of Can Tho, Tan Son Nhat and Phu Quoc airports.

Malaysia hospitals works with Vietnamese medical insurance firms

A Memorandum of Understanding (MoU) on co-operation was signed on May 25 between Malaysian hospitals and Vietnamese insurance companies in Ha Noi.

The signing ceremony, organised by Insmart Co Ltd, saw the inclusion of top Malaysian private hospitals, such as the National Heart Institute, Ramsay Sime Darby Health Care and Pantai Hospital Kuala Lumpur, with insurance providers in Viet Nam, including Post and Telecommunication Joint Stock Insurance Corporation (PTI), Vietinbank Insurance Company (VBI) and Petrolimex Insurance Corporation (PJICO).

Under the MoU, which was encouraged with the presence of Ambassador Extraordinary & Plenipotentiary of Malaysia to Viet Nam Dato' Azmil Mohd. Zabidi, the Malaysian hospital will be part of the Vietnamese insurance companies' service, ensuring that the customers enjoy insurance rights and interests that are similar to those in Viet Nam.

Sherene Azli, Chief Executive Officer (CEO) of the Malaysia Healthcare Travel Council (MHTC), said she hoped that the numbers of healthcare travellers from Viet Nam would double this year, knowing that Malaysia offers a seamless end-to-end healthcare service strictly monitored by the Malaysian Ministry of Health.

The MHTC was established by the Government of Malaysia as the primary agency to develop the healthcare travel industry and promote Malaysia as the preferred destination for healthcare travel in the region. MHTC works closely with all relevant government agencies and private healthcare organisations to ensure quality care and facilitate smooth entry of healthcare travellers.

Azli said the outstanding advantages of her country's medical service included healthcare quality that meets global standards, the presence of leading global healthcare centres, advanced medical technology and competitive costs.

"Rich in our tourism offerings, we want healthcare travellers who come to Malaysia for treatment to feel at ease and truly experience Malaysian hospitality," said Sherene Azli.

Speaking at the ceremony, Deputy CEO of PTI Nguyen Duc Binh said the partnership was a valuable strategic alliance that would allow the two sides to leverage their established infrastructure and insurance base in Viet Nam into a new market, such as Malaysia, with a strong government-backed healthcare travel system in place.

Nguyen Hong Phong, Deputy CEO of ViettinBank Insurance Company Ltd., said he wanted customers to have information about affordable healthcare insurance options through the partnership with these top Malaysian hospitals.

Phong said his company had co-operated with Insmart for five years to develop healthcare services in Viet Nam. This was the first time they were joining hands to develop insurance services in Malaysia.

"With this co-operation initiative, we will provide customers various healthcare choices. We have insurance packages from VND100 million (US$4,608) to VND2 billion ($92,165) per year for the customers," Phong said.

He said during his visits to Malaysian hospitals, he saw advanced facilities and quality healthcare services with spending that was cheaper than in other countries.

Malaysia has excellent cooperative relationships with Viet Nam in economics, trade and investment areas, which have seen rapid and stable development over the years. Malaysia hopes that this trend continues and spills over into the healthcare sector, as the country is prepared to compete with the world's best in healthcare travel, with its numerous medical and wellness offerings.

Azli said that more than 5,000 Vietnamese patients visited Malaysia for healthcare treatment in the 2013-14 period. The figure was expected to double this year.

With the diversification of healthcare travel services, Azli said that the Vietnamese visitors would feel comfortable and have good experiences from Malaysian hospitals.

It's reported that Malaysia received some 800,000 medical tourists in 2014. Popular treatments being sought are in cardiology, oncology, fertility treatments, orthopedics, ophthalmology, dental treatments, health screenings, and cosmetic surgery. Malaysia has recently won the Medical Travel "Destination of the Year 2015" award, a prestigious accomplishment presented by the International Medical Travel Journal (IMTJ) in the United Kingdom.

Mexico asked to open trade office in Vietnam

Vietnamese Ambassador to Mexico Le Linh Lan suggested Mexico open a trade office in the Southeast Asian country while attending a business forum in Mexico City on May 28.

Representatives from dozens of Vietnamese firms in Mexico participated in the four-day event organised as part of a series of activities to mark the 40th anniversary of bilateral diplomatic ties.

Ambassador Le Linh Lan highlighted Vietnam’s active engagement in regional and international financial organisations, as well as the country’s outstanding achievements in external, social and economic affairs thanks to the “doi moi” (renewal) process.

She noted that trade with Mexico reached 2.26 billion USD last year, posting an annual rise of 40 percent. In the first quater of 2015, bilateral trade was valued at 776 million USD.

In addition to the existing bilateral free trade pacts, the two countries are pushing ahead with negotiations to set up a Joint Committee on Economic, Trade, and Investment Cooperation, and sign an agreement on fisheries and seafood cooperation.

Vietnamese businesses shared their experience in trade with their hosts, including tax regulations, transportation and payment methods.

The event was held by the Vietnamese Embassy in Mexico in conjunction with the Vietnam Chamber of Commerce and Industry, and the Mexican Business Council for Foreign Trade, Investment and Technology.-

Southeastern region aims to welcome 30 million visitors in 2020

The tourism sector in the Southeast region is striving towards attracting 30 million visitors by 2020, earning around 125 trillion VND (5.75 billion USD), according to the new master plan for the sector.

According to the plan, which was released in Ho Chi Minh City on May 28, by 2030, the region is expected to attract 50 million visitors, generating 230 billion VND (10.58 billion USD).

The plan lists practical measures for boosting regional tourism, including developing human resources, fostering regional tourism links, expanding markets and diversifying tourism goods and services.

According to Nguyen Thi Hong, Vice Chairman of the Ho Chi Minh City People’s Committee, Ho Chi Minh City, one of the region’s six localities, has recorded an average annual tourism growth of 26 percent, accounting for 11 percent of the city’s GDP.

The new plan plays an important role in boosting the tourism sector in the whole region as well as each locality in particular, she said.

Meanwhile, Deputy Minister of Culture, Sports and Tourism Dang Thi Bich Lien said the regional tourism sector had grown, significantly contributing to socio-economic development in the region.

However, she pointed out that the sector lacked a long-term vision to tap into its full potential, adding that the master plan was crucial for sustainable development in the region.-

Between 60 and 70% of equipment and technologies used at export processing and industrial zones is outdated, resulting in products with low added value, the HCM City People's Committee has said.

The committee has asked the HCM City Export Processing and Industrial Zone Authority (HEPZA) to restructure business operations of industrial zones, most of which have been operating for about 20 years.

The city asked HEPZA to examine enterprises' capital, technology, products, land-use efficiency, and employees' professional skills.

The city said that Freetrend Company in Thu Duc District's Linh Trung Processing Zone, for example, did not operate efficiently.

It has a 110,000 sq m plant and 21,000 workers to process footwear for many international brand names. Its turnover is VND1.4 trillion (US$67 million) a year but the company only contributes VND22 million (US$1,000) in tax.

At least 100 companies in the city are operating with a similar low economic efficiency, the committee said.

According to HEPZA's management board, most foreign projects are labour-intensive with low added value, especially in electronic assembling, footwear, and textiles and garments.

Seventy-three percent of enterprises in HEPZAs are small enterprises with capital under US$5 million.

Very few of them produce high added value products. When the industrial zones first opened, the focus was simply on creating new jobs. There were few standards applied to technology, capital or management skills.

In 2013, only 1% of enterprises had modern technology, while 51% had outdated technology.

Links between foreign and local enterprises were also poor as most foreign companies imported equipment and raw materials.

To implement business restructuring, the city plans to focus on technology investment, shifting from processing to manufacturing technology to increase value addition and enhance competitiveness.

The city will invite only investors with high added value production and green technology, and it will focus on support industry and services to industry.

Labour-intensive companies and low- and medium –level technology enterprises will receive support to restructure their business.

Product design and manufacturing capability and ISO quality management application will also be speeded up.

"Four key industries, including: engineering, electricity-electronics, pharmaceutical chemistry and food processing have attracted workers from intensive-labour industries," Vu Van Hoa, head of the HEPZA's management board was quoted as saying in Sai Gon Giai Phong (Liberated Sai Gon) newspaper.

The number of workers in the engineering industry has increased by 15.6%, electricity-electronics 9%, pharmaceutical chemistry 14.6% and food processing 21.6%, compared to the same period last year.

"There are 7,000 excellent workers being sent to train in developed countries like Japan, the Republic of Korea, Singapore and Thailand," Hoa said.

He said that seven low-technology and labour-intensive projects in Linh Trung Processing Zone and eight others in Tan Thuan Processing Zone had moved to the Mekong Delta provinces of Ben Tre and Tra Vinh.

"The infrastructure on the empty land will be upgraded, and we'll look for high-technology projects," he said.

‘Pepper spray' hits coffee, rubber

Farmers in the Central Highlands province of Dak Lak have chopped down some of the area's most essential crops, coffee and rubber, to make room for the possibly more lucrative black pepper plant.

After a rapid increase in Viet Nam's pepper cultivation, the area has reached 80,000 hectares.

According to the Viet Nam Pepper Association, the price of domestic pepper has increased continuously since 2007. It cost VND150,000 (US$6.9) per kg in early January, and jumped to VND175,000 ($8.1) by the end of the first quarter of this year. The price of exporting black pepper was nearly $8,800 per tonne, an increase of 35 per cent compared with the same period last year.

The price hike has encouraged farmers to swap their farms for pepper or increase their yield, regardless of if their land can support it or not.

Hoang Phuoc Binh, vice chairman of the Chu Se Pepper Association, said the pepper supply would increase by hundreds of thousands of tonnes if the cultivation area kept increasing at a similar pace. He said the planting was being rushed.

Nguyen Van Cuong, a farmer in Cu M'Gar District's Ea Kpam Commune said he hired five people to chop down rubber trees – rubber was quite cheap and if pepper prices remained stable, it would be worth the investment. The land would be used for pepper plantations, and about 500 rubber trees would be used as pillars to help the pepper grow.

Dao Xuan Vinh, a farmer in Buon Ho Town's Thong Nhat Ward, said he switched two hectares of rubber over to pepper with the hope of making billions of dong in the next few years.

Ho Van Khac and Pham Ngoc Binh, two farmers in Phu Xuan Commune, even filled up a playground and pond to make more land to grow pepper.

Trinh Tien Bo, head of the provincial Department of Agriculture and Rural Development's cultivation unit, said pepper was planted over 16,000ha, exceeding the goal for 2020 by 1,000ha. The unit estimated that 2,000 more hectares would be planted by the end of the year.

Bo said the biggest concerns were the crops' quality and productivity. The pepper was a sensitive tree that would die en masse without proper cultivation.

The Viet Nam Pepper Association asked the ministry to require local agricultural authorities to help farmers plant the crops correctly and avoid fertiliser abuse to assure productivity.

Delta needs clear zoning, rice brand

Growing areas should be clearly zoned and a national brand should be developed to promote rice from the Mekong Delta, a conference heard in Can Tho on Wednesday.

Pham Van Du, deputy chief of the agriculture ministry's Cultivation Department, told the conference on large-scale field production in the delta that improving the incomes of farmers and rice-trading businesses was among important measures to promote rice production.

Nguyen Quoc Viet, deputy head of the Steering Board for the Mekong Delta, said the new large-scale field rice production model was first introduced in the Mekong Delta in 2011, and the area under it had risen from 7,800 hectares in the beginning to 290,000ha by the end of 2014.

It had also helped improve the quality of the grains and value addition to make them more competitive in the domestic and overseas markets, he said.

The impact of the new model should be assessed and its likely challenges identified in the era of integration, he said.

The Government issued a decision in 2013 to encourage a switch to it.

During last year's summer-autumn rice crop, 101 rice trading companies from 13 Mekong provinces signed deals with 88 co-operatives to buy rice grown on 42,605ha under the new model.

The deputy head of the department, Pham Van Du, said: "The co-operatives established for the large-scale field production model are of great importance. They supply farmers with seeds, fertilisers and agricultural chemicals."

Nguyen Tri Ngoc, secretary of the Association of Agricultural Production and Rural Development, said despite a trade surplus in 2014, the country's agriculture had showed weaknesses.

"Its growth rates went down and the prices of its produce plunged, with the prices of some Vietnamese produce ranking seventh or ninth behind those from other countries.

To make the large-scale model more profitable, farmers must use rice varieties confirmed by trading businesses, he said.

Declining local, international prices hit rubber shares hard

A decrease in global and domestic rubber prices had cut into both profits and shares in rubber firms, Securities Investment reported.

According to the Viet Nam Rubber Group (VNR), the global rubber price had fallen to US$1,500 per tonne from $5,000 per tonne in 2011.

The VNR also reported that rubber prices in the domestic market were fluctuating at around VND31 million ($1.43 million) per tonne at the moment, while the production cost is already VND30 million ($1.39 million) per tonne.

As a result, four out of six rubber shares listed on the HCM Stock Exchange (HOSE) have declined since the beginning of the year.

The Southern Rubber Joint Stock Company (CSM) reported that its first quarter profits fell by 30.4 per cent to VND54.6 billion ($2.53 million) against the same period last year.

CSM's value on the southern bourse has also decreased from VND43,000 in January to VND39,400 at the end of the last session.

Similarly, Dong Phu Rubber Company (DPR) recorded revenue of VND37.7 billion ($1.74 million) in the first quarter, a decrease of 28 per cent from last year's figure. DPR's profit mostly came from selling its farms.

Shares in DPR have fallen 10 per cent since the beginning of the year to VND32,900.

Only two rubber shares have risen on the market, but their growth and liquidity have been unstable.

Hoa Binh Rubber Joint Stock Company (HRC) recorded total revenue of VND55 billion ($2.55 million), including VND26.9 billion ($1.24 million) from rubber production and a pre-tax profit of VND28 billion ($1.3 million).

HRC reported that farm sales alone accounted for VND28 billion ($1.3 million), half of the company's revenue in this first quarter.

HRC's share have risen from VND45,800 in March to VND46,400 after the last session, but liquidity has remained. In the last ten sessions, HRC's average trading volume has been only 218 shares.

In order to cope with problems in the rubber industry, the VNR will ask rubber firms to cut 30 per cent of total investment to reduce production costs.

Tran Ngoc Thuan, director general of the VNR, said that rubber companies should maximise their harvests on rubber plantations by growing other crops there.

Some firms had planted other trees like coffee and acacia on the plantations to reduce production costs and make the best use of the available land resources, he added.

Thai new Vietcombank vice director

Viet Nam Bank for Agriculture and Rural Development's Deputy Director Dinh Thi Thai will be deputy director of the Bank for Foreign Trade of Viet Nam (Vietcombank) from June 1.

Thai received the appointment order from Vietcombank Chairman Nghiem Xuan Thanh at the bank's head office in Ha Noi on Thursday, after the State Bank of Viet Nam gave its nod the previous day.

Thai has a master's degree in finance and 16 years of experience in banking and finance. She held important posts related to investment assessment, supervision and credit risk management at Vietcombank, before being appointed deputy director of Viet Nam Bank for Agriculture and Rural Development or Agribank in June 2014.

Ha Noi locates new fair centre

The National Exhibition and Fair Centre will be located on the intersection of Nhat Tan-Noi Bai highway and National Highway No 5 in Dong Anh District, the Ha Noi People's Committee said.

The new centre will cover a total area of 128ha, including 46ha of the Van Tri fresh water lagoon and the River Thiep water surface.

The land is part of the master plan for the construction of the capital till 2030, with a vision towards 2050, as approved by the Prime Minister.

The committee said the location of the exhibition centre would meet the requirements relating to event organisation, traffic and transport of commodities (near Noi Bai International Airport and other key highways).

VPBank offers preferential loans

The Viet Nam Prosperity Bank (VPBank) is offering a yearly preferential interest rate of 6.99 per cent for mortgages and unsecured loans, in a bid to share customers' financial difficulties.

Accordingly, borrowers who seek to purchase a house, automobile or capital for a business, would enjoy a fixed interest rate of 6.99 per cent for up to 25 years. This applies for loans not greater than VND10 billion (US$458,000). Plans call for mortgage loans to be approved in two working days. The total funding allocated for the programme are VND5 trillion ($229 million).

In addition, VPBank has also provided VND1 trillion ($45.8 million) for unsecured loans for those citizens with incomes of more than VND4.5 million ($206) a month who have no mortgage assets. Borrowers could receive up to VND500 million ($22,900) over five years.

VPBank has striven to renew their products and services to bring outstanding benefits to customers.

Sony showcases new Bravia™ 4k LCD TV line

BRAVIA™ 4K LCD televisions from Sony are now available in Viet Nam, after they were announced earlier this year at CES 2015.

The televisions use the advanced 4K Processor X1, with improved clarity, colour accuracy and contrast. The new X9000C series features an ultra-thin, floating style, making it Sony's thinnest range of TVs yet with edge-to-edge viewing.

The models range in size from 43 to 75 inches, and include four new series and nine new models. As the industry leader in 4K picture quality, Sony has committed to developing technologies to enhance the viewing experience is showcased with this line-up. The new 4K Processor X1 was built to enhance clarity, colour and contrast while improving the streaming quality of images that 4K content providers supply. Combined with advanced 4K X-Reality™ PRO upscaling algorithm technology, these televisions will use 4K resolution, providing the best image quality regardless of the source.

Viettel launches MyDoctor healthcare service

Central Endocrinology Hospital and mobile network operator, Viettel, officially introduced healthcare and consultation services through a video call, MyDoctor, in Ha Noi yesterday.

MyDoctor will provide tele-healthcare and consultation services by allowing patients to select and connect with their favourite doctors who will keep an eye on their health condition and offer them prescriptions at their homes.

MyDoctor will store patients' medical records so that doctors can easily locate patients' documents and often keep track of their health, and hence, give timely advices.

The healthcare service through smartphone foundation will improve services in remote and mountainous areas.

Housing supply in HCMC profuse: businesses

The real estate market has not escaped from consequences of the 2009-2013 crisis but has significantly recovered this year. A slew of new projects have gone on sale and investors have entered a fierce race to get customers.

After three years of construction, Dai Quang Minh Company has announced to open nearly 400 apartments of Sala project for sale in June at the price of VND40 million (US$ 1,900) per square meter. Locating adjacent to Sala is The Sun Avenue in Nguyen Huu Tho and Dong Van Cong Streets, where the square meter is sold at VND24-28 million.

Over 700 apartments under Him Lam Cho Lon project have also been offered for sale. Other projects have gone on sale such as 8X Rainbow in Binh Tan, Florita in District 7, TDH-Phuoc Long in District 9, Idico in Tan Phu, An Gia Riverside in District 7, Saigonres Plaza in Binh Thanh, La Astoria in District 2…

Several housing land projects have also been opened for sale such as Five Star, Cat Tuong Phu Thanh and SJC@Vsip...

Chairman of HCMC Real Estate Association Le Hoang Chau said that businesses have brought out new projects and revived a number of frozen ones after eight years of difficulties.

The launch of a series of new projects with attractive advertisement has confused potential house buyers and put investors in a severe competition to get customers. The Government has recently warned of the return of a property bubble.

Deputy Director of Him Lam Land Company Ngo Quang Phuc said the housing supply very abundant and advised customers to carefully find out about projects that they are interested in so as to make an accurate choice, suiting their demand and financial conditions.

CIEM: SOE reform vital for private sector

The president of Central Institute for Economic Management (CIEM), Nguyen Dinh Cung, has underscored the importance of State-owned enterprise (SOE) reform, saying there would be no room for the private sector to survive if the reform gets stuck.

“Many foreign experts have told me to stop discussing SOE reform because this is a formidable task,” he said. But he replied that Vietnam has no choice but to restructure the State sector.

“Reality has proved that if SOEs have not been restructured, there would not have been any room for private firms to survive,” he told a workshop on the negative impact of SOEs on the market, structural reform and economic growth in Hanoi City on Wednesday.

Pham Duc Trung, deputy head of CIEM’s Committee for Enterprise Reform and Development, said SOEs have enjoyed exclusive incentives.

At present, Vietnam has seen nearly 800 wholly State-owned enterprises with combined assets of around VND2,800 trillion, 80% of gross domestic product (GDP). This group has total equity of VND1,100 trillion and debts of VND1,700 trillion.

If their debts were counted as public debt, the nation’s public debt would double. Eight State-run groups account for most of the loans.

As estimated, SOEs are holding 70% of business and production facilities. Every year, the State budget allocates budget quotas to State-run economic groups, corporations and banks. The total amount is nearly VND1.5 trillion this year, nearly VND2.3 trillion last year, VND751.5 billion in 2013, VND5.75 trillion in 2012, over VND5.2 trillion in 2011 and more than VND5 trillion in 2010.

The fact that SOEs are entitled to more incentives than other economic sectors have caused distortions on the market, unhealthy competition, wrong market signals and inefficient allocation and use of resources, Trung said.    

Economic expert Dinh Tuan Minh said total assets of Vietnamese SOEs make up 80% of GDP, well above the 15% in Organization for Economic Cooperation and Development (OECD) countries. The State cannot set up an effective governance model for such giant SOEs.

Expert Pham Chi Lan pointed out the large scale of SOEs as the main reasons why Vietnam’s economy cannot be a market economy.

The State holding has even expanded in recent years. If the situation remains until 2018, Vietnam will not be able to develop a real market economy although the World Trade Organization (WTO) lifts the non-market mechanism for Vietnam, she said.

Honda motorcycle sales up

Honda Vietnam recorded a year-on-year increase of 3% in motorcycle sales in the fiscal year 2014 after sales falls in two previous years.

In the fiscal year, from April 2014 to March 2015, Honda Vietnam sold 1.9 million bikes, up 3% against the previous fiscal year. Its market share rose by two percentage points to 70%, said Minoru Kato, who is general director of the company and chairman of the Vietnam Association of Motorcycle Manufacturers (VAMM).

Vietnam consumed 2.71 million motorcycles in the fiscal year, equivalent to the previous year, the leading motorcycle producer in Vietnam said in a report on sales and new targets.

Honda Vietnam credited the sales growth to the launch of its nine new bike models. The company also exported 91,000 completely built-up scooters of PCX, Lead and SH Mode models as well as spare parts to many markets, up a staggering 179% against the previous year. Its export value is put at US$245 million.

The company looks to sell two million motorcycles in fiscal 2015 and obtain export revenue of US$345 million, surging 41% against the previous year.

Last year also marked the first year for Honda Vietnam to foray into the clutch motorcycle segment with the launch of MSX model, and sales reached 2,000 units. However, the firm does not have plans to join the market segment of high-capacity motorcycles this year although it imported several big bikes to gauge the market.

Honda Vietnam will continue to focus on the scooter and motorbike segments in this market.

Honda Vietnam now has three motorcycle factories and one car factory with a total of 9,000 employees. Opened in November last year, its third motorcycle facility produced 27,100 units in the last three months of the last fiscal year.

For the automobile market, Honda Vietnam reported sales of 6,610 units last year and looks to increase the number to 7,200 units this fiscal year.

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