Seminar on sustainable textile industry to be held in Hanoi

A seminar titled “Smart manufacturing system for sustainable textile industry” will be organised in Hanoi on July 13, heard a press conference on May 31.

The seminar, to be held annually, will be co-held by the Vietnam Textile and Apparel Association (VITAS) and the Korea Institute of Industrial Technology (KITECH). It is part of the bilateral cooperation between the governments of Vietnam and the Republic of Korea (RoK), which was approved in the memorandum of understanding signed in Seoul, the RoK in December 2016.

According to the organisers, the seminar aims to help textile businesses of Vietnam become more proactive in joining the fourth industrial revolution 4.0.

The smart manufacturing solution in textile industry is expected to benefit textile businesses in terms of productivity, cost reduction, efficient human resource management and working climate improvement.

Park Jun Ho, senior researcher, former Director of KITECH Vietnam Office said that the seminar seeks to improve businesses’ capacity, meeting the requirement of the digital era and industrial revolution 4.0, adding that it will serve as an annual training event jointly sponsored by KITECH and VITAS. 

KITECH is the sole research and development (R&D) institute of the RoK Government in textile industry. It currently has representative offices in the US, China, Indonesia and Vietnam.

Ho Chi Minh City starts 8th green product consumption campaign

The eighth annual “Green Consumption Campaign”, which seeks to improve people’s awareness of environmental protection, will take place throughout June with a myriad of activities and projects.

The information was released at a press conference held on May 31 by Sai Gon Giai Phong (Liberated Sai Gon) newspaper, the municipal Department of Natural Resources and Environment and Saigon Co.op retailer.

Standout projects include “Green street” helping communities form the habit of living in harmony with the environment and “Green brands for community” promoting the identification of environmentally-friendly products.

General Director of Saigon Co.op Nguyen Thanh Nhan said that 4,000 free green coupons will be offered to raise public awareness of green products on sale at Co.opmart supermarkets.

In addition, green coupons will be given to consumers who spend more than 200,000 VND (8.8 USD) at Co.opmart supermarket, Nhan stated, highlighting that green products will be sold at special discounts at the supermarket chain.

Co.opmart supermarkets also advocate the use of environmentally friendly bags instead of those made from plastics, he added.

Phung Ai Van, a representative of the organising board, said that the campaign has promoted community’s roles in changing consumers’ habit towards improving their own living environment’s quality.

Besides, practical activities in the campaign will encourage businesses to obey environmental protection law, improve environment’s quality and pursue sustainable development goals.

Licogi to trade on UPCoM in June

Việt Nam’s Infrastructure Development and Construction Corporation (Licogi) has obtained approval from the Hà Nội Stock Exchange (HNX) to trade 90 million shares on the Unlisted Public Company Market (UPCoM), under the stock code LIC.

Some 31.5 million shares offered to strategic shareholders are under restricted transfer until December 2020 and another 234,100 shares are also subject to transfer restrictions.

Licogi will start trading on the UPCoM on June 5, at a starting price of VNĐ4,900 (22 US cents) per share.

In April 2015, the corporation sold nearly 21.3 million shares during its initial public offering (IPO) at a starting price of VNĐ10,000 per share.

The equity auction saw positive results, with the entire offering being sold to 106 individual investors. It brought in more than VNĐ212.8 billion and increased the company’s charter capital to VNĐ900 billion following the equitisation.

Since then, the company has not raised charter capital.

By March 16, 2017, Licogi had three major shareholders -- Ministry of Construction with 40.71 per cent of charter capital, Khu Đông Real Estate Investment JSC holding 35 per cent and Gia Cường Investment Company Limited owning 22.24 per cent of capital.

In 2016, Licogi reported a net loss of VNĐ293.4 billion, a negative cash flow of VNĐ142 billion and total short-term debt in excess of current assets by VNĐ803.5 billion. These issues indicate uncertainties, which may lead to increasing suspicion on the ability of continuous operation of the corporation

VN’s exports improve, driven by FDI sector

Việt Nam exports touched US$79.29 billion in the first five months of this year, representing a rise of 17.4 per cent over the same period last year.

According to latest updates of the General Statistics Office (GSO), foreign direct investment (FDI) firms contributed more than 72 per cent to the country’s export revenue in the period and witnessed a rise of 19 per cent.

The FDI sector helped narrow the trade deficit run by the domestic sector, GSO said.

While the domestic sector ran a trade deficit of $10.36 billion, the FDI sector posed a surplus of $7.65 billion.

Overall, Việt Nam ran a trade deficit of more than $2.7 billion, unchanged from the January-April period.

The United States remained the largest importer of Vietnamese goods with export revenue of $19 billion, up by 9.9 per cent. The European Union came the second with export value of $14.6 billion, up by 9.5 per cent.

China was the third largest importer of Vietnamese products with a whopping rise of 40.3 per cent in the five-month period.

Việt Nam was heavily reliant on imports from China. In the first five months of this year, Việt Nam imported goods worth $22 billion from China, up 15.6 per cent, and ran a trade deficit of $11.5 billion with the country.

Việt Nam ran the largest trade deficit with South Korea, at $12.9 billion, in the first five months, a 61.3 per cent increase over the same period last year.

According to GSO, major export products of Việt Nam in the period were mobile phones and parts with revenue of $16 billion (up 12 per cent), garments and textiles $9.4 per cent (up 9 per cent), electronics and components $9.4 billion (up 46.2 per cent) and footwear products $5.6 billion (up 10.5 per cent).

Pepper and cassava, however, witnessed a decline in export value of 16 per cent and 12.8 per cent, respectively, due to a slump in prices.

Việt Nam mainly imported machinery and equipment, electronics, computer and parts, steel, plastics and chemicals.

Minister of Planning and Investment Nguyễn Chí Dũng said trade deficit was not very worrisome because the country mainly imported materials for production.

Dũng said to reduce trade deficit, Việt Nam would focus on boosting exports rather than reducing imports, especially to key markets such as the United States.

Number of new businesses increases in VN

Nearly 11,000 new enterprises were established in the country in May with total registered capital of VNĐ119.24 trillion (U$5.24 billion).

This was a rise of 9.3 per cent in the number of enterprises and 17.8 per cent in the registered capital compared to the same period last year.

On average, the registered capital of individual businesses increased by 7.9 per cent to VNĐ10.9 billion, according to the Ministry of Planning and Investment’s National Enterprise Information and Registration System.

Totally in the first five months of this year, the country had 50,534 newly-established enterprises with total capital of VNĐ485.6 trillion, a year-on-year rise of 12.9 per cent in the number of enterprises and of 39 per cent in the registered capital.

The five-month increase, however, was lower than that of the same period last year with 24.1 per cent rise and 59.3 per cent growth in term of enterprise quantity and level of capital, respectively.

Notably, the number of registered labourers for new businesses in the reviewed period saw a modest decline of 2 per cent to 521,700, the system reported.

From January to May, the number of newly-established enterprises surged 72.8 per cent in property trading sector; 38.9 per cent in banking, finance and insurance; 31 per cent in education and training sector; 27.3 per cent in health-care and social support activities, and 18.4 per cent in the sector of accommodation and catering services, in addition to 12.6 per cent in construction industry and 11.7 per cent in manufacturing and processing industry.

The five-month period also saw some 32,145 enterprises suspending operations, surging 12.5 per cent year-on-year while 4,685 enterprises were dissolved in the period, which was 1 per cent higher than last year’s corresponding period.

Programme to support pig farmers launched

The Central Committee of Việt Nam Youth Federation and DSF Vietnam Co on Wednesday launched a programme called "Support Farmers – Price Subsidy to Consumers" to help farmers sell their unsold pigs at reasonable prices.

The programme aims to sell pork at subsidised prices to stimulate consumption, Nguyễn Thị Thu Vân, permanent deputy chairwoman of the federation’s Central Committee, said.

Many activities have been undertaken to support farmers overcome the difficulties caused by a sharp decrease in pig prices, but the situation has not improved much, she said.

To run until the end of June, the programme includes many activities like fairs and setting up booths to sell pork at subsidised prices in five provinces and cities, HCM City, Đồng Nai, Cần Thơ, Bình Phước and Bình Dương.

Through its website at www.porkpork.vn, the programme will buy pigs from farmers at VNĐ30,000 a kilo and sell at a price of VNĐ35,000, but buyers have to buy pieces of pork weighing 18-20 kilogrammes, Nguyễn Tuấn Khởi, managing director of DSF, said.

Vân said the initial purpose of the programme is to help pig farmers sell their unsold products, while in the long term it aims to encourage farmers to continue breeding to prevent a shortage of pork and help them breed pigs based on plans and market demand and production chains to ensure quality.

She also called for co-operation and support from businesses, especially those involved in farming pigs and processing pork, and locals.

Trần Tiến, deputy general director in charge of the animal feed business at C.P Việt Nam, the first company to support the programme, said after cutting pig feed prices by VNĐ200 per kilogramme, the company is now set to increase pork sales at supermarkets.

It would also increase processing of ready-to-eat products like sausages and others, he said.

It has cold storage space to rent out for storing pork, he said.

His company is willing to supply pork without profits to fairs under the programme to stimulate demand, he said.

The programme also calls on enterprises, especially those that are members of the federation, and the Việt Nam Young Entrepreneur Clubs in provinces and cities that have kitchens for workers to consume more pork.      

Safeguards applied on colour-coated iron

The Ministry of Industry and Trade (MoIT) on Wednesday issued Decision No 1931/QĐ-BCT on the application of official safeguards on colour-coated iron sheets.

Products subject to these safeguard measures are imported from various countries and territories and have trade codes: 210.7010. 7210.7090. 7212 4010. 7212.4020. 7212 4090. 7225 9990. 7226.9919. 7226.9999.

This decision will be effective within 15 days from the date of signing. The order of procedures for application of safeguard measures should comply with the law on safeguards in the import of foreign goods in Việt Nam.

The MoIT applies official safeguards through tariff quotas on imported colour-coated iron in Việt Nam within three years from the effective date of the decision.

In the first year (from June 15, 2017 to June 14, 2018), the total import quota of iron products with non-taxable codes was 380.68 thousand tonnes. In the second year, the import volume of products with non-taxable codes will amount to 418.75 thousand tonnes and will increase to 460.62 tonnes in the third year. The tariff for products out of quota is 19 per cent.

On March 30, 2017, MoIT issued the Decision No 1105/QĐ-BCT on the application of official anti-dumping measures for imported galvanised steel products (also known as galvanised iron). Up to 26 HS codes originating from China (including Hong Kong) and Republic of Korea (case number AD02) were brought under these measures.

Official anti-dumping measures are applied in the form of additional import duties.

14 startups to represent the north in 2017 U.S. Ambassador’s Entrepreneurship Challenge

14 startups has just been selected from the northern region to the semi-final of the 2017 Ambassador’s Entrepreneurship Challenge which was organised by the U.S. Embassy Hanoi.

A team presenting to the judges and audience on May 30.

The 14 will compete in the National Competition on June 14. This year’s Ambassador’s Entrepreneurship Challenge includes three categories: social entrepreneurship, idea stage, and startup stage. The goal of this U.S. Embassy initiative is to help Vietnam expand its entrepreneurial ecosystem and encourage innovation.

Counselor for Public Affairs Molly Stephenson opened the pitch competition, expressing gratitude for the many Challenge sponsors, including Ms. Christy Trang Lê for one USD5,000 scholarship to attend the Vietnam Executive MBA at the Shidler College of Business of the University of Hawaii, Mr. Nghĩa Vũ for the USD500 cash prize in the social entrepreneurship category, and institutional sponsors The Vietnam Executive MBA at the Shidler College of Business, University of Hawaii, Topica Founder Institute, Toong Co-working Space, UP Coworking Space, and Seattle-based non-government organization Jolkona. She also recognized the many individuals serving as judges and trainers in support of this three-month initiative.

The leaders of the startup semifinalists come from diverse backgrounds: the Green Tea Pork team is a group of high school students from Thai Nguyen Province and the AliceNote team includes seasoned software developers. The vast majority of the teams include young professionals and entrepreneurs working to develop and lead a successful business. 

Binh Duong promotes trade in Italy

The southern province of Binh Duong held a conference to promote the local investment opportunities in Italy on May 30, aiming to secure future partnerships with the host country’s Campania region.

Speaking at the event, Vietnamese Ambassador to Italy Cao Chinh Thien stressed that it’s time for business cooperation as the two countries’ relations are thriving.

Vietnam and Italy regard economic collaboration as a pillar of bilateral ties, he noted, adding that partnerships formed between Vietnamese provinces and Italian regions will contribute to the realisation of the two governments’ commitments.

Vice Chairman of the Binh Duong People’s Committee Mai Hung Dung said his province is among fastest growing localities in Vietnam and local authorities always attach importance to the success of investors.

He affirmed Binh Duong welcomes Italian investors, especially those from Campania region, to study the local market, which could serve as a gateway to regional markets.

Earlier, a trade promotion delegation from Binh Duong led by Dung had a working session with Campania leaders.

The two sides agreed to study the signing of a cooperation pact with specific roadmaps for partnerships in terms of investment, production, culture, and education.

Home to 6 million people, Campania is the biggest economic hub in southern Italy. It has strength in services, tourism, garment, mechanics and shipbuilding.

First Vietnam dairy fair opens in Hanoi

The Vietnam International Milk and Dairy Products Exhibition – Vietnam Dairy Fair 2017 opened on May 31 at the Friendship Cultural Palace at 91 Tran Hung Dao street, Hoan Kiem district, Hanoi.

The Vietnam Dairy Fair 2017, the first of its kind, is a major trade promotion event to connect domestic and foreign businesses, said Tran Quang Trung, President of Vietnam Dairy Association (VDA) at the opening ceremony.

He added that the event, which runs through June 3, aims to facilitate investment cooperation as well as enhance competitiveness of Vietnam’s dairy industry. 

Dairy products, technology, feed and veterinary medicine are being showcased at the exhibition, co-held by VDA and Vietnam Advertisement and Fair Exhibition Joint Stock Company.

It sees the participation of well-known domestic and international dairy brands such as Vinamilk, Mead Johnson, Neslte, Moc Chau, Ba Vi and Abbot. 

Three conferences on sterilization technology in milk processing, milk and dairy products for public health, and using high technology in dairy farming are held within the framework of the exhibition.

Various activities will be available for children to mark International Children’s Day and World Milk Day on June 1.

The first day of the exhibition attracted numerous visitors who are students majoring in food technology as well as individuals and organisations that are interested in dairy products and dairy business in Vietnam, according to the organising board.

Vietnam produced 1.9 billion litres of fresh milk and earned 90-100 million USD from milk exports in 2015, according to a master plan on developing Vietnam’s dairy processing industry to 2020, with a vision to 2025.

The respective figures will be 2.6 billion liters and 120-130 million USD for 2020 and 3.4 billion liters and 150-200 million USD for 2025.

Total milk consumption per capita in Vietnam was 23 litres in 2015 and 24 liters in 2016 and is expected to increase to 26 litres this year, 27 litres in 2020  and 34 litres by 2025.

Workshop discusses new trends, demands in tourism development

A workshop on new trends and demands in tourism development took place in Hanoi on May 31, gathering managers, experts and businesses operating in the sector.

Discussions focused on a number of topics, including requirements for Vietnam in tourism development in the new period, the 4th industrial revolution and changes in tourism business, e-marketing for Vietnamese tourism, and factors that affect tourism consumption amid global integration.

Dr. Nguyen Anh Tuan, Director of the Institute for Tourism Development Research (ITDR), said 1.2 billion people worldwide travelled for holidays in 2016.

The figure is likely to rise this year despite conflicts and diseases, he added, noting that the Asia-Pacific region would maintain its position as the global top tourist destination.  

Statistics from the institute showed that 40 percent of online searches for tourism information were done using smart phones. Tourists are taking advantage from posts on social network and review websites on different locations. The development of technology requires Vietnam’s tourism sector to quickly boost digital development.   

Le Tuan Anh, Deputy Director of the International Cooperation Department under the Vietnam National Administration of Tourism, said exploiting digital applications are necessary for the sector to avoid setbacks.

In Vietnam, travel agencies have quickly caught up with the trend, while State agencies have shown little involvement, thus are yet to update their management models in line with the tendency.

Son La improves competitiveness for business development

A scientific seminar on improving provincial competitiveness for business development took place in the northern mountainous province of Son La on May 31. 

Speaking at the event, Secretary of the provincial Party Committee Hoang Van Chat said the province recently honoured cooperatives and firms earning more than 200 million VND per ha of land and over 2 billion VND per ha of water on average. 

Of the total 1,959 businesses in the locality, highly profitable ones account for a mere 0.7 percent. 

As scheduled, a provincial public administrative centre will be put into operation on June 2.

According to the Vietnam Chamber of Commerce and Industry (VCCI), 63 percent of local firms said they face red tape while going through administrative procedures, and all surveyed businesses met difficulties in administrative procedures regarding land and had to pay unofficial fees. 

Nguyen Ngoc Son, permanent Vice President of the provincial Business Association, expressed wish that the province would take more steps to further improve business climate. 

Deputy head of the VCCI Department of Legal Affairs Pham Ngoc Thach asked Son La to review and improve the processing of administrative procedures for businesses as well as supply of information on the websites of authorities at all levels. 

The event was co-hosted by the provincial People’s Committee, the VCCI and the provincial Union of Science-Technology Associations.

Son La improves competitiveness for business development

A scientific seminar on improving provincial competitiveness for business development took place in the northern mountainous province of Son La on May 31. 

Speaking at the event, Secretary of the provincial Party Committee Hoang Van Chat said the province recently honoured cooperatives and firms earning more than 200 million VND per ha of land and over 2 billion VND per ha of water on average. 

Of the total 1,959 businesses in the locality, highly profitable ones account for a mere 0.7 percent. 

As scheduled, a provincial public administrative centre will be put into operation on June 2.

According to the Vietnam Chamber of Commerce and Industry (VCCI), 63 percent of local firms said they face red tape while going through administrative procedures, and all surveyed businesses met difficulties in administrative procedures regarding land and had to pay unofficial fees. 

Nguyen Ngoc Son, permanent Vice President of the provincial Business Association, expressed wish that the province would take more steps to further improve business climate. 

Deputy head of the VCCI Department of Legal Affairs Pham Ngoc Thach asked Son La to review and improve the processing of administrative procedures for businesses as well as supply of information on the websites of authorities at all levels. 

The event was co-hosted by the provincial People’s Committee, the VCCI and the provincial Union of Science-Technology Associations.

Property sector to see many mergers, acquisitions

The real estate market is busy with mergers and acquisitions (M&A), which are forecast to touch a record high this year, driven by the sector’s steady recovery.

M&A have become popular among developers who have the financial capacity as it is a quick way to acquire clean land funds for property development and catch the opportunities on time in a fast-recovering market.

Fresh capital inflows from M&A have helped revive a number of long-delayed projects, reducing inventories and bad debts in the sector, said property expert Dang Hung Vo.

One of the major M&A deals this year was developer Quoc Cuong Gia Lai selling the Phuoc Kien project in HCM City’s Nha Be district to Sunny Island Investment for an undisclosed amount. However, Quoc Cuong Gia Lai is known to have received 50 million USD, which went into paying off a 1.35 trillion VND (59 million USD) debt to the Bank for Investment and Development of Vietnam (BIDV).

Recently, Phat Dat Real Estate Development Corporation announced that it has found a partner to transfer a part of EverRich 3 project in HCM City, into which the developer had poured in 1.58 trillion VND in 2016 and planned to spend another 642 billion VND in 2017. Phat Dat is expected to sell off the entire project for 2.5 to 3 trillion VND, which will be used to repay debts.

In March, An Gia Real Estate Development and Investment Company saw investment from Japan’s Creed Group and acquired seven blocks of the Lacasa project in HCM City’s District No 7 from Van Phat Hung. Previously, An Gia had bought several stagnant projects; it expects more M&A deals in the future.

M&A has become a strategy for real estate companies such as Hung Thinh Real Estate, which has acquired some 20 long-delayed projects. It has resumed construction in 10 of these projects and sales have begun, such as Moonlight Park View, Tan Huong Tower, Sky Centre and Mekody Residences.

Other realty firms such as Novaland, Greenland, Thu Duc House have also hopped onto the M&A bandwagon.

Le Hoang Chau, president of HCM City Real Estate Association, said M&A deals have become the buzz word in the property sector during the past two years as investors see significant opportunities in the recovering market. It is also the fastest way to acquire clean land with the legal work done, as available land dries up in major cities such as Hanoi, HCM City and Da Nang.

According to Chau, there is scope for more M&A deals in the southern city, which has around 500 delayed projects. Investors are cooperating with each other and seeking partners with funds to implement projects as credit policies for property development get tougher.

There is a growing interest in the Vietnamese property market among foreign investors from Hong Kong, Korea and Singapore, JLL Vietnam said. Stephen Wyatt, general director of JLL Vietnam, was quoted by cafef.vn as saying that several foreign investment funds are looking to expand their presence in Vietnam through M&A deals.

Previously, Wyatt had forecast a record year for M&A deals in the real estate sector, driven by an improved economy.

Property services firm Savills Vietnam also expects a rise in property M&A deals this year.

Nguyen Van Dong, M&A consultancy director of Rong Viet Securities Company, has also said that M&A deals in the realty market would dominate this year, in an interview with Dau Tu Chung Khoan (Securities Investment).

Vietjet asked to open new flights from Thanh Hoa

Authorities of the central province of Thanh Hoa have asked low-cost carrier Vietjet to open new flights from the province to other localities.

Thanh Hoa aims to create optimal conditions for Vietjet to open new air routes to Da Nang, Can Tho, Pleiku, Da Lat and Binh Dinh, as well as ensure efficient operation of the flights.

Tho Xuan International Airport of Thanh Hoa is one of the fastest growing airports nationwide. The airport welcomed more than 822,000 passengers in 2016, increasing 10 times compared to when it started operation.

In the first three months of 2017, it received 245,000 passengers, up 23 percent year-on-year.

Currently, the airport has three domestic flights to/from Ho Chi Minh City, Nha Trang and Buon Ma Thuot.

WB adopts Country Partnership Strategy framework with Vietnam

The Board of Executive Directors of the World Bank (WB) on May 31 approved a new Country Partnership Strategy framework with Vietnam, which will help the country realise socio-economic development goals in 2016-2021.

The framework will also help Vietnam balance economic development and environmental sustainability, promote equality and improve State agencies’ ability and accountability.

The framework aims to tap the WB’s existing support in Vietnam, connect the country with other development partners and mobilise other resources for development. 

Four proritised groups in the framework are inclusive development and involvement of the private economy, investment in human development and knowledge, sustainable environment and response capacity, and good management. 

The WB’s Board of Executive Directors approved a loan worth 358 million USD for Vietnam to implement two new projects. 

The first 240-million- USD project will be implemented in several Mekong Delta localities, focusing on improving infrastructure and urban planning. 

Meanwhile, the second one, with investment of 118-million-USD, will help restore and upgrade infrastructure in the central provinces of Binh Dinh, Phu Yen, Quang Ngai, Ninh Thuan and Ha Tinh – which were affected by flooding in 2016.-

Hai Phong maintains second place in administrative reform

The northern port city of Hai Phong has retainedits second spot among 63 cities and provinces nationwide in the administrative reform index for the fourth consecutive year, scoring 87.24 percent. 

Chairman of the municipal People’s Committee Nguyen Van Tung said authorities focused on strengthening discipline in State budget collection and spending and improving the business climate in 2016-2017. 

They also hold monthly dialogues with businesses which are widely publicised. In 2016, the province moved up five spots in the nationwide competitiveness index. 

Since 2016, agencies and localities have been assigned to oversee the progress of task fulfillment by heads of municipal departments and the district People’s Committees online, thus reducing delays. 

Director of the municipal Department of Home Affairs Nguyen Dao Son said 47 administrative procedures have been cut since 2009 while technological advances have been adopted in managing and improving the quality of administrative services such as electronic tax filing, customs and insurance. All second level or higher administrative procedures can now be handled online. 

The province has also cut time for business registration licensing to three working days and standardised data on local businesses in the national database on business registration.

Hanoi Goods Week 2017 to take place in Japan

 Vietnam - Hanoi Goods Week 2017 will be held at the AEON Lake Town Mori trade centre in the Japanese prefecture of Saitama from June 5-11.

The event will be organised by the Hanoi Centre of Investment, Trade and Tourism Promotion (HPA), the Ministry of Industry and Trade and Japan’s AEON Group.

It aims to boost exports of made-in-Vietnam goods to the Japanese market.

Deputy Director of HPA Nguyen Thi Mai Anh said 33 businesses have registered to join the event, focusing on garment-textile, footwear, handicraft, home decoration, souvenirs, farm produce, processing food and local special products. 

An activity will be held to connect Vietnamese businesses with Japanese import and distribution firms, along with a workshop to promote tourism and cuisine of Vietnam and Hanoi in particular.

After 2017, Hanoi hopes to make the goods week an annual event in Japan.

PM chairs round-table debate with top U.S. corporations

Vietnam attaches importance and gives priority to promoting the Comprehensive Partnership relations with the U.S., expecting to attract more investment from the U.S. in such areas as energy, infrastructure, education-training and finance-banking. 

PM Nguyen Xuan Phuc made that statement at the round-table debate on Viet Nam-U.S. cooperation and investment on May 30 in New York City, the U.S.

The PM considered the event as an opportunity for exchanging orientations and opportunities between the two nations, especially in fields of finance, a potential sector in Viet Nam.

Viet Nam has been renewing, completing the institutions and law, upgrading the business environment and expressing its determination for further integration, affirmed the PM, adding that in the future, the nation continues establishing a Government of determination, creation, action and serving the people and businesses, focusing on reforming the institution, renewing the growth model, and enhancing the capacity and competitiveness of the economy.

The U.S. was the third largest trade partner of Viet Nam in 2016 with the two-way trade value of US$50 billion. The U.S. investors poured US$10.2 billion in 835 projects in Viet Nam.

The PM suggested U.S. investors to accelerate investment in other sectors in Viet Nam such as finance, the stock market, transport, infrastructure, food, communications, agriculture, services and tourism.

At the debate, U.S. large corporations hailed Viet Nam’s investment and business environment, considering investment opportunities in production and service sectors in Viet Nam thanks to cheap labor.

The PM directed leaders of ministries and agencies to address issues raised by investors and facilitate U.S. investors to pour more investment in Viet Nam.

North-south expy seen having more toll stations

More toll stations are expected to go up on the expressway connecting the north and the south of the country as many sections are being developed under the build-operate-transfer (BOT) format.

According to a prefeasibility study the Government has passed to the National Assembly, the project is divided into 20 components to be carried out in two stages.

In stage one from 2017 to 2025, the first priority (2017-2020) will be to develop 713 kilometers of expressway with four lanes, including sections Mai Son (Ninh Binh) – Bai Vot (Ha Tinh), Cam Lo (Quang Tri) – La Son (Thua Thien-Hue), and Nha Trang (Khanh Hoa) – Dau Giay (Dong Nai).

Two other sections with a total length of 81 kilometers, Cao Bo (Nam Dinh) – Mai Son (Ninh Binh) and La Son (Thua Thien-Hue) – Tuy Loan (Danang), will be expanded from two to four lanes.

For the first priority of stage one, around VND130.2 trillion will be required, with VND55 trillion of it to come from the Government and over VND63.7 trillion from investors.

In the second priority of stage one spanning from 2021 to 2025, 659 kilometers of expressway will be built at a total cost of VND113 trillion, with around VND57 trillion of it to be sourced from the Government and VND56.1 trillion from investors.

In stage two after 2025, the expressway will be expanded depending on traffic demand.

Some of the sections will be developed in the BOT format. Besides, investors may transfer their toll collection rights to other sections upon completion to raise funds for other projects.

With these two investment forms in place, there will be certainly more toll stations along the expressway. Meanwhile, a lot of toll stations set up to recover capital for the expansion of National Highway 1A, the country’s current backbone, will remain active in the next 15 to 20 years.

The prefeasibility study indicates the North-South Expressway will have a total length of 1,372 kilometers and connect Cao Bo in the northern province of Nam Dinh and Dau Giay in the southern province of Dong Nai. Meanwhile, according an expressway development plan until 2020 with a vision towards 2030, the cross-country expressway would be 2,095 kilometers long, linking Lang Son Province in the north and Ca Mau Province in the south.

In explaining the difference, the Ministry of Transport said National Highway 1A and its parallel road Quan Lo-Phung Hien are projected to meet traffic demand between Can Tho City and Ca Mau Province with a total length of 150 kilometers until 2030. Therefore, the ministry said, there will be no need to build an expressway between these two localities.

Between Hanoi and Lang Son, an expressway section connecting Hanoi and Bac Giang Province has already been constructed while another section between Bac Giang and Lang Son is under construction.

Some 123 kilometers of expressway has now been opened to traffic while 127 kilometers is under construction. The remaining 1,372 kilometers will be developed from now to 2025 with four to six lanes.

Pepper price hits seven-year low

The pepper price has plunged to a seven-year low of VND80,000 (US$3.52) per kg as it has eased off its multi-year spike.

In July 2010, pepper hovered around VND80,000 per kg, the highest level since 2006. And since then, it had steadily rallied and briefly hit VND200,000 per kg.

However, the pepper market began rearing its ugly head early this year, with the price steadily edging down.

The pepper price news website at giatieu.com reported it is difficult to forecast pepper price movements under the current market conditions. Some farmers said they had stopped selling due to the woefully low price, throwing pepper exporters into a difficult position. But others said they had been boosting sales to trading firms but traders had not been financially able to buy more.

The price of this commodity is expected to inch up slightly, especially for contracts with September and October deliveries, according to information on www.commodityonline.com.

According to the Vietnam Pepper Association (VPA), the price decline has resulted from an upsurge in domestic supply. The association advised farmers to stop expanding production, which could lead the pepper price to drop further.

Vietnam now has more than 100,000 hectares under pepper farming, double the original plan.

Vietnam exported some 99,000 tons of pepper in the first five months of this year, up nearly 10% year-on-year, but the export value dipped around 19% to US$586 million as the January-April average export price was 25% lower than in the same period last year, at US$6,106 per ton, said the Ministry of Agriculture and Rural Development.

FDA asked to continue tra fish inspections

The U.S. Department of Agriculture (USDA) has asked the Food and Drug Administration (FDA) to continue its role as inspector of tra fish imports from Vietnam.

USDA earlier planned to take over the job of inspecting all stages of Vietnam’s tra fish production from FDA from September 1, 2017, when Vietnamese tra fish will be labeled as catfish. However, in its recently released budget summary for 2018, USDA asked FDA to move on with the task due to its budget cuts.

Truong Dinh Hoe, general secretary of Vietnam Association of Seafood Exporters and Producers (VASEP), said the association has received the information. “We are contacting the parties concerned to see what is really going on.”

Vietnamese seafood exporters who are used to the etiquette of FDA said it would be easier to work with FDA than USDA in terms of paperwork. In addition to transferring some duties to other agencies, USDA is expected to lay off 5,300 staff to cut costs.

In 2016, Vietnam’s tra fish exports reached US$1.66 billion, with the U.S. being the largest importer, accounting for 23% of Vietnam’s total tra exports. However, China has overtaken the U.S. as the largest importer of Vietnamese tra fish this year.

According to VASEP, tra exports to the U.S. in the first quarter of 2017 totaled only US$61 million, a 24% decrease against the same period last year. The high anti-dumping tariff and the U.S. technical barriers are behind the fall in tra fish sales to America.

There are currently 15 eligible firms exporting tra fish to the U.S. but only two or three of them frequently export the fish there.

Pork export to China remains tough

China will carefully check the disease control and quality of pork imported from Vietnam before officially opening up its market, said the Ministry of Agriculture and Rural Development.

Deputy Minister Tran Thanh Nam said on May 30 China had suspended formal pork imports from Vietnam since 2012 due to foot and mouth disease.

During a visit to China in March by a delegation of the ministry, led by Nam, China asked the Vietnamese side to put foot and mouth disease under control and issue certificates of assurance on hygiene and quality before it could lift the ban on pork imports from Vietnam.

Nam told the Chinese Ministry of Agriculture that the disease had already been put under control. However, the two sides will need more time to get pork trade back to normal.

The Vietnamese agriculture ministry has assigned relevant agencies to keep farmers updated on the pork market. In addition, the livestock industry should be restructured towards making high-quality products, so slaughterhouses will have to shift to using advanced equipment and technology.

Livestock authorities are also looking for other markets where food safety and hygiene standards are also high.

Major Mekong Delta irrigation project needs review

Pros and cons of a major irrigation project in the Mekong Delta should be put under review prior to execution, said Le Anh Tuan, deputy director of the Research Institute for Climate Change at Can Tho University.

He told the Daily on the sidelines of a seminar on water security challenges in the Mekong River on Monday that the Cai Lon-Cai Be irrigation system project would require a whopping VND3.3 trillion (US$145.3 million) in phase one.

The necessity of the project has not been proven given the lack of data, he said and asked whether the benefits of the project like an increase in cultivation and productivity could be worth the money.

The ecosystem in the project area, he noted, could be altered as the delta has three distinctive ecological regions – fresh freshwater (front), brackish water (center), and saline coastal water.

If a dam is in place, it would disrupt the brackish water ecosystem, he said. However, the project has yet to assess impact.

The dam would certainly have adverse impacts on the quality of water as the sea helps reduce water pollution in the river basin. As such, there would be a higher possibility of pollution inside the dam, he added.

He asked if the irrigation system was designed to prevent salinity and preserve fresh water for growing rice or benefit shrimp farming.

The Government gave approval in principle for phase one of the Cai Lon-Cai Be irrigation system in April.

The project is intended to control salinity intrusion, cope with the existing conflict between agriculture and coastal aquaculture in Kien Giang, Hau Giang and Bac Lieu provinces in the Cai Lon-Cai Be basin, and ensure sustainable fisheries in coastal Kien Giang Province.

Given climate change and rising sea levels, the irrigation system will help store fresh water for coastal areas to address water shortages in the dry season and prevent forest fires, thus guaranteeing sustainable socio-economic development.

Besides, it will help improve rainwater drainage and acid sulfate soils, and develop local roads and waterways.

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