India examines antidumping duty slap on DVDs imported from Vietnam

The Directorate General of Anti-Dumping and Allied Duties (DGAD) of India will arrange a hearing for the imposition of an anti-dumping tax on Digital Versatile Discs (DVDs) imported from Vietnam, according to the Competitiveness Management Department under the Vietnamese Ministry of Industry and Trade.

The DGAD, a nodal agency of the Indian Commerce Ministry, recommended imposition of the duty after an investigation began in May 2009.

The agency concluded in its probe that the domestic industry had suffered a material injury on account of dumped imports of the DVDs from Vietnam, Thailand and Malaysia.

In 2010, India decided to impose a duty on DVDs of between 29.75 USD per 1,000 pieces to 50.51 USD per 1,000 pieces. The duty imposed under this notification was to be levied for a period of five years, from April 12, 2010.

On December 31, 2013, India finally announced that the duty would be 73.01 USD per 1,000 DVDs.

Last year, India began anti-dumping probes to consider if Indian businesses have been sustaining losses and if there is need for the duty to continue.

Questionnaires related to the case were sent to involved parties. They were required to prepare proposals on their viewpoints, which will be presented at the upcoming hearing.

Vietnamese companies exported 57.56 million DVDs to India between 2008 and 2009.

In 2009, India levied anti-dumping duties of 46.94 USD per 1,000 CDs, and tariffs ranging from 0.452 USD to 1.582 USD on compact fluorescent lamps bulbs from Vietnam.

Vietjet to launch Hanoi-Chinese Taipei route

Low-cost carrier Vietjet Air will introduce a new flight route from Hanoi to Taipei, Taiwan (China) starting February 1, reported Ha Noi Moi newspaper.

The flight will take 2 hours and 40 minutes, and will operate every Monday, Wednesday and Thursday.

The flight will depart from Hanoi at 3:10 p.m. and arrive at Taipei at 6:50 p.m. (local time). The return flight will depart at 7:50 p.m. and arrive in Hanoi at 9:30 p.m (local time).

Vietjet currently offers daily service between Ho Chi Minh City and Taipei.

The air carrier now operates nearly 200 flights a day on 44 domestic and international routes, including to Singapore, the Republic of Korea, China, Thailand, and Myanmar.-

Industry expands in HCM City

The HCM City industrial development index last year saw higher growth than in previous years, especially by four key industries, with the ratio of processing and manufacturing sectors increasing and labour-intensive and polluting industries decreasing.

According to the municipal Department of Industry and Trade, the industry development index rose 7.9 per cent last year compared to 7 per cent in 2014.

The processing and manufacturing sectors grew 8 per cent, spearheading the rise in the index.

It enabled the creation of 2 per cent more new jobs compared with 2014.

The number of new businesses rose by 29 per cent while closures fell by 3.9 per cent.

Last year the share of the city's four key industries in overall manufacturing output increased marginally to 60 per cent.

Of this, engineering and manufacturing accounted for 20.4 per cent as it used plenty of modern and cutting-edge technologies in production. Local producers were able to make many items that could replace imports and reduce prices by 30-50 per cent.

Electronics and IT accounted for just 4.1 per cent of the production but grew by a high 11 per cent.

Chemicals, rubber and plastics changed its development trend by becoming more environment-friendly. The industry accounted for 18.6 per cent of manufacturing output and grew by 1.9 per cent. Products like automobile and motorbike tyres and tubes were exported to many foreign markets.

The food and beverages industry, the last of the four, focused on quality as it accounted for nearly 17 per cent of total industrial value and achieved growth of 11.1 per cent.

Two other strong, traditional industries, footwear and textile and garments, each continued to account for 17.7 per cent of manufacturing value. The former grew by 4.6 per cent and the latter by 8.2 per cent.

The department also pointed out many shortcomings faced by the manufacturing sector.

"Industrial production growth is below potential," a department spokesperson was quoted as saying by Thoi bao Kinh te Viet Nam (Viet Nam Economic Times) newspaper.

The quality, efficiency, and competitiveness of the industrial sector improved, but not strongly enough, he said. It was changing rapidly towards the right mix, but value-addition and the ratio of processing, which is not labour-intensive or polluting, remain low, he admitted.

This year the city again targets 7 per cent growth overall for industry, and 7.2 per cent for the four key industries, he said.

To achieve the targets, the department would continue support efforts to reduce the ratio of labour-intensive and polluting industries and promote knowledge-based, high-tech, energy-saving and environment-friendly industries, he said.

The four key industries and supporting industries would get assistance in terms of funding and training human resources.

VN, EU reach wood product deal

Viet Nam and the EU last week reached important agreements during their fifth round of negotiations on the Voluntary Partnership Agreement (VPA) on Forest Law Enforcement, Governance and Trade.

According to Deputy Minister of Agriculture and Rural Development Ha Cong Tuan, the talks on January 21 and 22 focused on putting in place a management system to ensure the legality of Vietnamese timber, especially the legal origin of imported wood.

The VPA on Forest Law Enforcement, Governance and Trade aims to ensure that all Vietnamese wood products exported to EU countries are of legal origin.

Once in effect, the agreement is expected to boost Viet Nam's wood processing and export industry, allowing for sustainable growth and market expansion.

In a joint announcement released after the meeting, the two sides highlighted that efforts will be made to conclude the negotiations by the end of 2016.

The result of the fifth round of talks is important to the free trade agreement between Viet Nam and the EU, particularly in terms of protecting the environment and bio-diversity.

The EU, which makes up about one-fourth of world consumption, is now the fourth largest importer of Viet Nam's timber and wood products, after the US, Japan and China.

In the first eight months of 2015, Viet Nam's timber and wood product exports to the EU brought in VND9,900,800 million, while its timber imports from the bloc was VND2,486,400 million.

Local companies urged to study EU regulations

Vietnamese firms involved in fishery and agricultural products were urged to study the sanitary and phytosanitary measures (SPS) of the European Union (EU) markets to optimise opportunities for both sides.

This would help them cope with impending free trade deals and expand their exporter base.

According to Nguyen Tu Cuong from the Viet Nam Fisheries Society, the compliance to SPS was a pre-requisite for exporters of fishery products, vegetables and fruits to penetrate the EU markets smoothly, amid the impending Viet Nam – EU free trade agreement (FTA), which promised to be beneficial to Vietnamese firms due to the elimination of a number of tariff lines.

Cuong also said that all opportunities from the trade deal would become meaningless if Viet Nam failed to meet sanitary and phytosanitary standards set by the import markets.

He said that local management agencies as well as exporters did not fully understand the EU's regulations while Viet Nam's regulations remained inconsistent with that of the EU's.

That is why Viet Nam needed a roadmap to harmonise SPS regulations to the EU's standards to sustainably get access to their markets.

Le Thanh Hoa, deputy director of the SPS office in Viet Nam, said that sanitation was of great concern today as Vietnamese firms regularly received warnings from the EU about contents of banned antibiotics, heavy metals, and excess pesticides.

For example, during the past five years, tra fish products from Viet Nam have received warnings with regard to hygiene from Spain for 24 batches, and Germany for 14 batches.

Hoa said export firms must closely supervise the process from production to harvest and processing to minimise violations of chemical content. A production chain should be developed based on the connection with farmers to develop areas for raw materials to ensure supply of high-quality products, he added.

Regular and timely updates about sanitary regulations for each products were indispensable.

Statistics from the Department of Animal Health revealed that in the first 10 months of 2015, more than 8,000 tonnes of fisheries products were returned due to violations of sanitary regulations.

Fresh measures needed to support G-bond market

The Ha Noi Stock Exchange (HNX) would co-ordinate with the State Treasury of Viet Nam to boost up this year's issuance of G-bonds.

During a conference on the Government bond market held last week, HNX said it would also complete a scheme to develop the local corporate bond market that is expected to be operated in 2017.

The conference, with representatives of the Ministry of Finance (MoF), also sought solutions for market development in 2016 with focus on boosting technical issues on disclosure and reporting regimes to ensure convenient issuance of treasury bills and matching mechanisms.

The HNX said it helped mobilise VND249.6 trillion (USVND248,640 billion) in G-bonds in 2015, up 3.7 per cent compared with 2014, adding that more insurance and retirement funds took part in the market instead of only commercial banks.

The MoF recently announced the list of 21 permitted members who can bid in the G-bond market including securities companies, commercial banks and insurance companies.

Accordingly, four brokers are Vietcombank Securities, Viet Nam Investment and Development Bank Securities, Bao Viet Securities and HCM City Securities Corporation. The Banks included ACB, ANZ Vietnam, BIDV and SCB, in addition to VietinBank, Lienvietpostbank, MB and Maritimebank.

The other banks are Sacombank, Techcombank, Vietcombank, and Tien Phong Bank, in addition to VIB, VP, and Bank for Agriculture and Rural Development of Viet Nam. Two insurance companies are Deposit Insurance of Viet Nam and Social Insurance of Viet Nam.

In December 2015, the ministry drafted the obligations and rights of members for the G-bond auction in 2016, in which members are obliged to tender a minimum participation of 60 per cent of the G-bond auctions.

From November 1, 2015 to October 31, 2016, members are obliged to buy G-bonds at the minimum rates of VND2 trillion (VND1,993,600 million) for securities companies, VND3 trillion (VND2,992,640 million) for branches of banks with 100 per cent foreign capital, and VND4.3 trillion (VND4,287,360 million) for commercial banks, joint stock banks, joint venture banks.

Of the total volume of G-bonds, all members must ensure that they purchase at least 50 per cent of bonds with over five years among the total purchases.

According to bond experts, the issuance of G-bond will increase this year, especially with crude oil falling sharply influencing the budget, while the country still needs a large capital source for development.

Last Wednesday, Deputy Minister of Finance Tran Xuan Ha said the task of the local G-bond market this year was to continue raising capital to support the government's debt restructuring with the majority of long-term bonds of over 5 years, to enhance the liquidity of the market and attract foreign investment and prepare the derivatives market.

While 85 per cent of the G-bond consumers are commercial banks which mostly receive short-term deposits, they are expected to buy long-term bonds from the government, a representative at the conference said.

A representative said G-bonds contributed to the hike in interests for deposits in commercial banks, partly because of their purchase of G-bonds at the end of 2015. Recently, many commercial banks have increased deposit rates.

As planned, the treasury, will release VND76 trillion (VND75,712 billion) of G-bond in Q1 with 45 per cent of bonds with a maturity of over 5 years.

Hai Phong attracts more investment

The northern city of Hai Phong has so far attracted approximately VND50,624 billion in investments, including VND40,320 billion in foreign direct investment, into its indtrial zones (IZs) and economic zones (EZs).

Deputy head of the Hai Phong EZ Authority Mai Xuan Hoa told baodautu.vn that the influx of investment capital to the city's IZs and EZs has increased significantly in recent years thanks to its improved infrastructure, effective overseas and domestic investment promotion activities and the attractive investment climate.

As an example, he said last year the city-based IZs and EZs alone lured VND19,465,600 million in foreign direct investment (FDI), making up 87 per cent of the total FDI registered in the city. They also attracted more than VND10.49 trillion (VND10,734,080 million) in domestic direct investment, up 31 per cent year-on-year.

Among the large projects, included the VND2,620,800 million South Dinh Vu Industrial Zone 2 (Deep C II) being developed by Belgian Rent-A-Port Group, the VND2,688,000 million apparel production factory built by Singaporean Herberton Private Limited in Viet Nam-Singapore Industrial Park Hai Phong (VSIP Hai Phong), and a domestically-invested carton packaging plant, worth VND1,016,960 million, in Trang Due IZ.

These projects not only contributed to creating jobs for local people, but promoted the city's socio-economic development, said Duong Ngoc Tuan, director of the municipal Department of Planning and Investment.

Le Thanh Son, vice chairman of the municipal People's Committee, said he believed that the investment wave in the city would be stronger in the near future when large transport infrastructure projects become operational at the national level.

In addition, its investment environment has strongly improved, especially administrative procedures which help businesses reduce the time required for obtaining licences, customs and tax declarations.

The integrated infrastructure, especially the transport system, has been one of the greatest advantages for the city in becoming an attractive investment destination.

There are some large transport projects, such as the Ha Noi-Hai Phong Expressway, Tan Vu-Lach Huyen Bridge, Hai Phong International Gateway Port and the Cat Bi International Airport.

Credit houses told to obey interest rate cap

The State Bank of Viet Nam (SBV) has told credit institutions to obey legal regulations on deposit interest rates to ensure safety of institutions and stabilise the local monetary market.

The move was made last week after some institutions recently offered many promotional programmes and bonuses to attract depositors, taking their real interest rates higher than the rate cap of 5.5 per cent per year for short-term dong deposits regulated by the central bank. Currently, the central bank sets the rate cap only on short-term deposits of less than six months.

Under Circular 297/NHNN-TTGSNH, the central bank said that credit institutions are not allowed to use ‘technical measures' as a loophole to indirectly exceed the central bank's rate cap. The central bank prohibits any unhealthy competition in the capital attraction of credit institutions.

According to the circular, credit institutions must issue written instructions before January 25 to instruct their subsidiaries and branches obeying the regulation.

Banking supervision and inspection agencies will enhance their watch on the implementation of obeying the rules. Fines will be imposed in case of violations.

For the past few weeks, many credit institutions have offered numerous promotions and bonuses of interest rates or gifts to depositors to meet their rising capital demands towards the end of the lunar year. The programmes have increased the operating costs of institutions, causing negative impacts on the interest rate levels in the domestic market.

Besides, 14 credit institutions have adjusted their deposit interest rates upwards by roughly 0.1per cent to 0.5 per cent per year in many terms for the past month, according to statistics from the central bank.

According to experts, capital mobilisation at banks has been busier than previously as the credit of the entire banking system has increased sharply, causing a temporary shortage of liquidity in some banks. Credit in 2015 surged 18 per cent, compared with 12 per cent in 2011, 10.9 per cent in 2012, 12.51 per cent in 2013, and 14.16 per cent in 2014.

The central bank in 2016 is also targeting a credit growth rate of 20 per cent, and SBV Governor Nguyen Van Binh said the central bank would find it difficult to further drop lending interest rates as demand for funds would remain high, and the SBV needed to balance its efforts to keep the foreign exchange rate stable.

To guarantee credit expansion, mobilisation needs to grow alongside while banks have to allocate resources to buy government bonds, thus putting pressure on lending interest rates.

However, Binh said that the SBV this year would act to keep lending interest rates stable just as in 2015, and strive to lower the medium- and long-term rates by an additional 0.3 to 0.5 percentage points.

Exporters' outlook for 2016 remains mixed

Vietnamese export firms have mixed feelings, both happy and worried, about business prospects for this year.

The Hoang Son I Limited Company in the southern province of Binh Phuoc signed a cashew export contract until May this year, according to Ta Quang Huyen, director of the company.

"The world market is consuming Vietnamese cashews with export prices rising from VND72,800 per kilogramme to VND78,400 per kilogramme," Huyen told the Phap Luat Thanh Pho Ho Chi Minh (HCM City Law) newspaper.

The output of Vietnamese cashews has been getting better, even in choosy markets such as Japan and the US, the director added.

However, large export contracts also make enterprises worried.

"The company does not dare to sign contracts with large volume because we are worried that there will be not enough raw cashews to meet the signed orders," Huyen said.

Huyen said the domestic raw cashews could supply only 30 per cent of the demand for export processing.

Responding to this issue, Nguyen Duc Thanh, chairman of the Viet Nam Cashew Association (Vinacas), said Viet Nam could process about 1.3 million tonnes of cashews each year, however, the country could supply only 500,000 tonnes, with the rest imported from Africa and Cambodia.

Meanwhile, the export of dragon fruit in the beginning months of this year has also been smooth, according to Tran Ngoc Hiep, director of the Hoang Hau Dragon Fruit Farm Co, Ltd.

Besides the key market of China, the company expanded its exports to the US, Japan, Europe and Southeast Asia.

Export prices to China are around VND22,400 per kilogramme, said Hiep.

"However, the difficulty of the sector is the unhealthy competitiveness among traders, which leads exporters to not have stable goods to meet the orders of foreign partners," he added.

Huynh The Nang, Chairman of the Viet Nam Food Association (VFA), said that the rice sector was expecting to export 1.2 million tonnes of rice in the first quarter of this year, 300,000 tonnes higher than that of last year.

He said the two contracts signed with the Philippines and Indonesia helped free a large volume of rice inventory.

However, according to rice exporters, this year is forecast to be difficult due to fierce competition with Thailand and India.

In addition, the Chinese market is reducing imports from Viet Nam while increasing imports from Myanmar, Cambodia and Thailand, a rice exporter told the newspaper.

Many textile businesses also signed export orders until the end of the first quarter.

However, representatives of many garment and textile businesses said firms need to actively connect with each other to form a close chain from raw material supply to finished products and exports, while shifting from an outsourcing country to a directly exporting one.

Craft industry struggles to find export markets

Viet Nam's handicrafts face many challenges in producing and finding export markets, while integrating into the world economy although it has the potential for economic development.

According to statistics from the Ministry of Agriculture and Rural Development's Agricultural Trade Promotion Centre, there are nearly 1,750 traditional craft villages across the country, providing employment to about 13 million people, in which 35 per cent are regular labourers and the remainder are seasonal employees.

These craft villages, many of which are centuries old, such as Van Phuc Silk village, Dong Ky Wood Carving village and Bat Trang Ceramic village, play important roles in forming and preserving local cultural values and boosting the villages' economies, said Dao Van Ho, the centre's director.

However, despite their large numbers, the country's craft villages are suffering from a lack of management and planning, a shortage of human resources, raw materials and capital, backwards technology and poorly-design products, all of which make it difficult to build brand recognition, in comparison with neighbouring countries in the region, Ho explained.

In addition, the link between villages remain limited.

Difficulties in meeting market demands and linking to customers are also concerns of those involved in handicrafts in many villages.

For years, craft villages have not paid attention to diversifying their designs to target the tastes of customers, while maintaining the typical characteristics of domestically-made handicrafts.

According to Ha Thi Vinh, director of Quang Vinh Ltd Co, among those who operate under the household-model, the heads of these small businesses often do not have the knowledge required to find outside markets, as they have not been trained in management techniques. In fact, this has prevented craft villages from operating professionally, as they need to depend upon many intermediaries, causing customers to become unsure about the villages' products.

Further, many products have not registered their trademarks and they also have not received quality certificates, making it difficult to become commercial products for export, she said.

"The process of ASEAN integration are enormous challenges for Vietnamese enterprises, especially to businesses, cooperatives, and household producers in craft villages. We likely fail at home due to the limited ability of household-scale producers, as well as the weakness of the distribution system, including import-export, wholesale and retail in the villages," Vinh explained.

Luu Duy Dan, chairman of the Viet Nam Craft Villages' Association, said villages are facing a large number of problems, including financial shortages, production space, outdated technology, untrained labourers and environmental pollution. And the largest challenge now is to find buyers for their products.

"In this era of the rapid development of technology, products produced by advanced production machinery and technology are dominating and replacing handicrafts in Viet Nam, and also other countries," he said.

"To survive and further develop, handicrafts have to depend on their strengths. That means that craft products must maintain and preserve their local culture and national character."

The craft makers should pay attention to improve their quality, not only quantity, to display the creativity and talent of the artists, he said.

The craft villages firstly need to create featured products to meet the demands of the domestic market and beyond, to international markets. For this, the products of the villages need to build their own brands, said Dan.

He added that the association has carried out some renewal solutions, aimed at removing difficulties for the craft villages.

The first change is the method of production, including independent household producers working together to design, produce and consume their products, in order to improve quality, reduce costs and prices of products and limit the negative impact on the environment.

Simultaneously, renewing design and technology should be improved, but also promoting traditional characters to meet the demands of domestic and international customers, he said.

The Government should also have more policies to overall support the production and consumption of products from craft villages, such as capital support, raw material planning and environmental protection, he said.

The handicraft makers also need assistance in surveying foreign markets, researching designs, training, setting up distribution systems, organising trade fairs at home and abroad, and especially building centres to introduce handicraft products, he added.

Consumer price index holds steady

The country's consumer price index (CPI), during the first month of 2016, remained unchanged compared to the previous month, the lowest level for the past decade, excluding January of 2015.

The CPI in December last year increased only 0.02 per cent over November.

Statistics released yesterday from the General Statistics Office (GSO) showed that the index also inched up only 0.8 per cent year-on-year.

Do Thi Ngoc, deputy director of the GSO's Consumer Price Index Department, said that except for January last year, when the index declined 0.2 per cent against the previous month, the month-on-month rise of the index in January, from 2007 to 2014, ranged between 0.32 per cent and 2.38 per cent.

January often saw the CPI grow significantly, as domestic demands for goods, especially food and consumer items, rise sharply ahead of the country's largest festival of Tet (Lunar New Year).

Ngoc attributed the low index in January this year to a 2.82 per cent reduction in transport costs, after twice having reduced petrol prices by 6.44 per cent during the month. The reduction contributed to a slide of 0.27 percentage points in the reduction of the country's CPI.

Further, the decline in transport fees also helped in the decrease of prices of many other commodities and services. According to the GSO, ten commodity items used to calculate the CPI reported to have slight increases of under 0.9 per cent in January.

Prices of food and catering services, which account for 40 per cent of the CPI, rose only 0.25 per cent, while the increasing cost of beverages and cigarettes was 0.44 per cent.

On the other hand, January saw prices of some items increase, of which education costs reported the highest rise of 0.89 per cent due to a rise of school fees in four cities and provinces, including Ha Noi, according to the Government's price rising itineraries.

SMEs to benefit from TPP and EVFTA

Domestic small- and medium-sized enterprises (SMEs) would enjoy many benefits from the Trans-Pacific Partnership (TPP) and Viet Nam-EU Free Trade Agreement (EVFTA), said economist Pham Chi Lan.

Lan told a conference on TPP and EVFTA held in Ha Noi yesterday that SMEs would be facilitated in trade liberalisation and connection in the region while expanding their global value chain as well as maximising competitive advantages.

Tariff barriers relating to export items will be removed, resulting in lower import costs and more diversified supply. In addition, Vietnamese enterprises will have a fair playing field both inside and outside the country, which could help protect investors.

According to the Viet Nam Trade Promotion Agency under the Ministry of Industry and Trade, the TPP will have clear impacts on the economy as the country's GDP, which could increase by 11 per cent while exports could be 28 per cent higher. Export turnover of key products such as garment and textile, leather shoes and seafood could surge in the next 10 years.

After EVFTA comes into effect, 99 export tariffs from Viet Nam to the markets of 500 million people would be removed in the next 7 to 10 years. The agreement is expected to grow Viet Nam's annual export turnover by four to six per cent.

Howver, the TPP and EVFTA would also pose challenges for businesses. The tariff cuts could make imported goods flood Viet Nam with cheaper prices.

This could make local enterprises face with fierce competition. On the other hand, goods exports would have to meet strict requirements for certificate of origin (C/O), anti-dumping issues, subsidiaries and trade defence tools, the agency said.

Claudio Dordi, the technical assistance team leader of the European Trade Policy and Investment Support Project (EU-MUTRAP) pointed out that Vietnamese enterprises should focus on C/O principles for garment and textile products, thus increasing added-value. The businesses should also improve the quality and safety of their products, following international hygiene, especially those from EU.

He proposed that the Government should provide clear information to companies on deadlines and detail of the EVFTA as well as other trade pacts.

In addition, Viet Nam should have a clear strategy at the national and local levels to promote quality management and building brand names.

The annual report on Viet Nam's economy 2016 released by Viet Nam Report Company showed that big local companies are optimistic about the impact of the TPP.

The survey collected ideas from more than 1,000 big companies nationwide.

With the expected economic growth rate of 6.7 per cent and CPI of less than five per cent, nearly a half of surveyed firms felt optimistic about their business in the first quarter of 2016 and the next five years.

Japan tech yields good catch

Tuna fishermen in the central coastal province of Binh Dinh came back to shore with a bountiful catch of tuna after nearly a month offshore.

Yesterday, about five to six fishing boats full of tuna, which were caught using Japanese technology, returned to Binh Dinh's Quy Nhon fishing port, with each boat carrying from 1.2 to 1.6 tonnes of tuna.

According to local fishermen, this was the biggest catch so far this year.

Nguyen Minh Doanh, a local fisherman from Hoai Nhon District, whose boat returned to the port after 20 days at sea, said he had caught 34 tunas weighing a total of 1.36 tonnes.

Truong Thanh Quan, who also had been offshore for up to 24 days, said he caught 40 tunas, with a total weight of 1.6 tonnes.

However, the price of tuna has decreased to VND98,000 (US$4.3) a kilogramme this year compared to VND110,000 ($5) last year, leading to a fall of VND10-16 million ($450-710) per boat trip in the fisherman's revenue.

So far, there have been more than ten boats returning to Quy Nhon port. All the tuna caught during this trip were purchased by the Binh Dinh Seafood Joint Stock Company (Bidifisco). The company then selected the best quality tunas to export to Japan.

After an earlier fishing trip in January, the company exported eight tunas to Japan.

Bidifisco's Director Cao Thi Thanh Lan said the company has sent technical staff to Quy Nhon port to purchase all tuna caught and continue to select best quality tunas for export.

Some remaining fishing boats are expected to dock at Quy Nhon port today, she added.

Binh Dinh is the first province in Viet Nam to use special technology and skills to catch and supply fish to Japan.

Bidifisco is the biggest tuna export company in the province. It exports 8,000 tonnes annually to Japan, US and European markets.

Vietnamese tuna products are exported to 100 countries and territories, including the US, Japan, Israel and Canada, as well as the EU and the ASEAN region.

Tuna exports have been the third biggest earner in Viet Nam's seafood industry with a value of $400 million in 2014, behind only tra fish and shrimp.

VN ramps up trade promotion to take advantage of new agreements

The national trade promotion programme in 2016 aimed to help firms take full advantage of new free trade agreements as well as the global economic recovery, said Do Thang Hai, Deputy Minister of Industry and Trade.

Hai said at conference yesterday that trade promotions must focus on sectors and products Viet Nam had strength and competitiveness in.

With a tight budget of VND90 billion (US$4 million) for the programme, dropping by VND20 billion ($888,900) compared to last year, the Viet Nam Trade Promotion Programme said it would be a challenge.

In order to achieve the target export growth at 10 per cent, Bui Huy Son general secretary of the programme, said the focus would be on the country's traditional export products like agro-fishery products, garments and textile and footwear.

The programme, which includes 177 projects, would be implemented from the beginning of this year.

As Viet Nam entered a rapid international integration period, promotions would target members of the Trans-Pacific Partnership, ASEAN Economic Community and trade deals with the Eurasian Economic Union, the European Union and South Korea to boost exports, according to Ta Hoang Linh, deputy director of the Viet Nam Trade Promotion Agency.

The programme would also promote the domestic market, especially in rural, mountainous and border areas in line with the campaign "Vietnamese prioritise using Vietnamese goods".

The trade promotion agency urged Vietnamese firms to improve product quality, develop brands and join global supply chains.

Linh said the programme contributed to maintaining and expanding export markets, developing the domestic market, promoting brands and removing difficulties for businesses.

Last year the programme drew 8,850 businesses to trade fairs and exhibitions at home and abroad, attracting 3 million visitors and leading to transactions and contracts worth $858 million from foreign markets and another VND637.8 billion ($28.35 million) from the domestic market.

Inflation rate in HCMC, HN remains very low

The consumer price index (CPI) in the country's two biggest cities of Ha Noi and HCM City in January is estimated to move in opposite direction with a 0.12 per cent rise in Ha Noi but a 0.03 per cent reduction in HCM City against the previous month.

The Ha Noi Statistics Office reported yesterday that the city's CPI increased this month due to the high demand for the Tet festival next month.

The office said the CPI for the capital city this month rose by 0.12 per cent against the previous month and 1.2 per cent year-on-year even after twice having reduced petrol prices.

Cutting the fuel prices forced the transport group to reduce the prices of goods by 2.1 per cent in January, the office said.

Meanwhile, the increase in CPI of Ha Noi this month was due to higher prices from the remaining 11 goods items used to calculate the index.

The highest surge in price was from education at a rate at 3.74 per cent because the municipal People's Committee increased the school fees.

The price of food surged 0.27 per cent in comparison with the previous month as the local market registered a high demand for goods before the Tet holidays. In addition, restaurants saw an increase in the demand for food during weddings and meetings at the end of the lunar year. These included pork, chicken and seafood.

The prices for the group of housing, electricity, fuel and building material surged by 0.08 per cent month-on-month as the demand for repairs to houses rose before the Tet festival, along with the use of electricity during the cool season.

Meanwhile, CPI this month in HCM City saw a slight reduction of 0.03 per cent against the previous month but had increased by 0.26 per cent year-on-year, according to the HCM City Statistics Office.

The office said the strong supply of goods and the development of price stabilisation programmes had contributed to price stability and the reduction in January's CPI, even though this is the month before the Tet festival, when demand for goods and services relevant to the Tet holidays is high.

The price fell by a record 3.36 per cent for the transport item while the reduction for the medicine and health care services items was 0.13 per cent and 0.01 per cent, respectively.

SSC to focus on increasing liquidity, efficiency

Better prospects for the global and local economy would support the stock market in 2016, Vu Bang, chairman of the State Securities Commission (SSC) said yesterday in Ha Noi.

Bang told the SSC's meeting to develop the stock market this year in the midst of difficulties and uncertainties such as the recent plunge of the Chinese stock market, strong devaluation of renminbi, and the tightening monetary trends in many countries. The bright sides were the expectation of the US economy, and a series of free trade agreements signed within the year.

Bang thought the local macro-economics could see positive administrative reforms along with a better business environment, and will be the core element to support the stock market in 2016.

In order to develop the stock market from 2016 to 2020, SSC Deputy Chairman Nguyen Thanh Long said the commission would concentrate on increasing the size and liquidity and improving the operational efficiency of the market.

The commission said there should be more share auctions to the public and to its strategic partners, enhancing the quality of accounting, auditing to improve transparency, and applying the electronic voting systems for issuers.

The commission said they would merge the two local bourses and bring the exchange and stock depository to international standards to enhance the competitiveness of the local market in the context of integration.

The commission will continue to restructure securities trading organisations by giving them more professional training, building a code of ethics, applying international accounting standards in their works. At the same time, the commission will allow foreign securities companies to set up their branches in Viet Nam to provide more services and attract foreign investors. On the other hand, SSC will guide the listed enterprises to register and list their shares on the international stock markets.

In order to attract foreign investors, SSC will work with the Ministry of Planning and Investment for a specific guideline on opening room for foreign investors. They will also provide an online transaction code, and reduce administrative procedures for foreign investors.

Finally, the commission said they would foster the monitoring, inspection and management of the market to find and deal with any violation to ensure the best security of the local market.

Belgium’s Solvay seeks expansion in Vietnam

Belgian giant Solvay planned to open a branch in Ho Chi Minh City in the future to seek opportunities in a wide range of sectors. These include the automotive sector, agriculture, food, and electronics, in addition to home appliances and energy.

The branch would also enable Solvay to enhance its presence in the Asia-Pacific and prepare for its potential investment projects in the future, baocongthuong.com reports.

Addressing a recent trade promotion event in HCM City, the company’s representative Vincent Decuyper said Vietnam would be a lucrative market for his company as the country was the fastest growing economy in the ASEAN bloc.

The company is headquartered in Brussels and employs approximately 30,000 workers in 53 countries. It specialises in many fields, including energy and the environment, automotive and aeronautics, electrical and electronics.

Dry ports development orientation adjusted

Deputy Prime Minister Hoang Trung Hai has agreed to adjust a plan on developing Vietnam’s dry port system to 2020, with a vision to 2030.

Prime Minister Nguyen Tan Dung asked the Ministry of Transport to preside over and collaborate with relevant ministries, offices, and localities to conduct research and set up adjustments in the plan.

The PM also urged the ministry to implement agreements on construction investment and announcement to open dry ports, including an investment project on a dry port conducted by the Saigon Newport Corporation, in accordance with regulations.

According to the Ministry of Transport, the current plan has proven insufficient, as several localities have demand for dry ports, but they have not been part of the plan.

Earlier, the Saigon Newport Corporation asked for investment permission on a dry port in Phu Thanh commune, Duc Trach district in the southern province of Dong Nai, which was not in the existing plan.

SBV continues low interest loans to help businesses overcome difficulties

The State Bank of Vietnam (SBV) in Ho Chi Minh City will provide businesses from all fields and economic sectors VND173 billion (US$7.7 million) of low interest loans to assist them to overcome difficulties this year, following successes of the city’s Bank-Enterprise Connectivity Program.

Reporting at a conference  hosted yesterday morning, a representative of SBV HCMC said that after four years of implementation the program has loaned 9,325 customers with a total fund of VND241 trillion (US$10.73 billion).

Last year, 19 commercial banks attended the program with disbursement hitting VND173,188 billion (US$7.71 billion), up 2.89 percent over the city’s assigned norm.

SBV Deputy Governor Nguyen Phuoc Thanh appreciated results obtained by the branch in HCMC and pledged to continue supplying businesses with VND10 trillion (US$445 million) preferential loans to solve difficulties, improve financial ability and competitiveness and recover production and trading.

In the next five year phase of the program, he prompted the branch to sponsor enterprises towards support industry and hi-tech agriculture development, investment stimulation and market stabilization.

The conference was attended by deputy Minister of Industry and Trade Tran Anh Tuan, former chairman of the HCMC People’s Committee Le Hoang Quan and former deputy Nguyen Thi Hong.

PVN faces crude oil plunge

Crude oil price slump to ten year low hovering around US$35 a barrel will greatly affect operation of Vietnam National Oil and Gas Group (PVN) and its member companies in 2016 and following years especially in oil and gas exploration, said PVN deputy director general Le Minh Hong at a meeting on Friday.

To cope with the oil price drop, PVN has proposed measures to remain stable production of petrol products, electricity and fertilizer since early this year.

In addition, the group will function plants at their highest capacity to make up oil revenue reduction, open new projects for service on schedule, minimize costs and improve trading effectiveness.

In 2015, EVN revenue exceeded VND560 trillion (US$24.93 billion) and after tax profit reached VND32.1 trillion (US$1.43 billion).  The group exploited a total of 18.75 million tons of crude oil, 11.6 percent beyond the year’s plan.

VN’s GDP growth listed among fastest in 2016

The Economist Intelligence Unit (EIU), under the Economist Group, forecasted that Viet Nam’s GDP growth will increase 7%, ranking ninth among the fastest growing GDP in the world.

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The forecast is equivalent to the goals set by the National Assembly in November 2015.

The EIU supposed that emerging nations in Asia will enjoy high GDP growths, including Viet Nam, Laos and Cambodia thanks to personal consumption and tourism.

Earlier, the National Financial Supervisory Commission (NFSC) estimated that Viet Nam’s economy may grow 6.7-6.8% next year.

The NFSC forecasts inflation rate may be around 2-3% in 2016 and the trade deficit may increase to US$4 billion in comparison with US$3.2 billion in 2015.

Gov’t strives for E5 bio-fuel roadmap

Deputy PM Hoang Trung Hai highlighted the determination to realize the E5 bio-fuel roadmap amidst low oil prices and difficult distribution of the bio fuel.

The Deputy PM made the point on January 7 in Ha Noi at a meeting to review the implementation of Decision 53/2012/QD-TT on the road map for using E5 petrol.

Mr. Hai tasked relevant agencies to boost E5 petrol consumption in accordance with the Government’s roadmap and encourage consumers to use the fuel in a bid to gradually reduce reliance on fossil fuel.

Specifically, by mid-2016, 100% of petrol stations in eight localities, namely Ha Noi, HCMC, Hai Phong, Da Nang, Can Tho, Quang Ngai, Quang Nam and Ba Ria-Vung Tay, will sell E5. Other localities will have to strive for 50% coverage of E5 petrol.

The Government leader asked the Ministry of Industry and Trade (MoIT) to work with E5 petrol producers to set a basis price formula, extricate price difficulties, cut production costs, and avoid the shortage.

The MoIT and the Ministry of Finance were assigned to consider appropriate mechanisms to create attractive prices.

Last year, the eight localities piloted E5 bio-fuel and consumed 278,504 m3 of fuel, accounting for around 15.72% of RON92.

As of late October, 2015, E5 bio-fuel was put on sale at 819 out of 2,018 fuel stations (or 40.58%).

Central Quang Ngai Province sold E5 biofuel  from July last year, becoming the first province in the country to sell the biofuel, with most of its retail petrol stations participating in.

Some 70% of stations in Da Nang now sell E5 petrol while the rates in Ba Ria-Vung Tau, Ha Noi, Can Tho and Hai Phong were 24, 20.4, 16.4 and 7 percent, respectively./.

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