Navibank gets new name

The Nam Viet Commercial Joint Stock Bank (Navibank) has been known as National Citizen Commercial Joint Stock Bank from January 22.

State Bank of Vietnam (SBV) decided to rename the bank, which started its restructuring in 2012.

Last year, Dai Tin Bank (TrustBank) was renamed Vietnam Construction Bank after it implemented its restructuring plan.-

HNXFF basket reviewed

The HNXFF-Index, which was launched at the beginning of December 2012, now has 375 stocks with a minimum free-float rate of 5 per cent after a review in January.

In the previous basket, four stocks had been delisted and one added.

After the latest review, no stocks were removed from the basket for failing to have a minimum free-float rate of 5 per cent.

The basket is reviewed every quarter.

HCM City’s investment soars in first month 2014

Ho Chi Minh Ciy’s investment increased greatly in capital and the number of registered businesses in the first month of 2014, according to the municipal Department of Planning and Investment.

The city has attracted a combined investment 12.072 trillion VND (567 million USD) from 1,415 new businesses and 2,680 existing businesses registering additional capital.

As of January 20, the city has licensed 15 new foreign investment projects with a total fund of 19.9 million USD, up 51.5 percent year-on-year.

The city is carrying out 24 official development assistance funded projects, worth more than 125.9 trillion VND (5.92 billion USD).

Meanwhile, the number of dissolved companies has decreased by 5 percent from 2013 to 162, equal to 11.5 percent of new businesses established.-

Draft plan on derivatives submitted

The draft decree about the derivatives market was submitted to the Government for review and approval, according to a representative from the State Securities Commission.

He said that the first derivatives transactions are expected to be conducted in Viet Nam by the end of 2015 or in early 2016.

The establishment of the derivatives market is in line with the stock market development and restructuring strategy, he added.

Dong Nai attracts FDI in support industries

The southern province of Dong Nai has targeted luring foreign direct investment (FDI) worth up to 900 million USD this year, according to the provincial Department of Planning and Investment.

The figure is 1.6 billion USD lower than the 2013 level, the department said, citing a more selective project strategy by the province, which focuses on the high technology and support industry, environmentally friendly projects, agricultural projects and infrastructure development.

Provincial authorities have set green production targets and committed to using less energy and more efficiently deploying employees.

As of January 20, the province attracted a combined foreign direct investment of 140 million USD, consisting of 70 million USD in four new businesses and 70 million USD in 17 existing businesses registering additional capital.-

Tan Tao back on VN30-Index

The list of stocks in the southern bourse's VN30-Index were recently updated with Tan Tao Group (ITA) replacing Thanh Thanh Cong Tay Ninh Sugar Company (SBT).

ITA had been removed from the VN30-Index a year ago.

Towards the end of last year, the trading volume of ITA exceeded 1 billion shares, with a free-float rate of more than 50 per cent and profits being reported, helping the code to return to the blue chip group. The market price of ITA was VND7,300 (US$0.34) after Thursday's trading, about 40 per cent higher than at the beginning of 2013.

The Ha Noi Stock Exchange also updated its HNX30-Index stocks.

Apartment complex roof complete

The Phuc Ha Investment, Trading and Infrastructure Development Company has completed constructing the roof of the Nam Xa La apartment complex in Ha Noi's Ha Dong District.

Covering an area of 7,396 square metres, it comprises two 30-storey buildings, two levels of basement and supermarkets. The apartments, covering an area of 70.4-94 square metres, will cost VND13 million per sq.m, including VAT.

Home buyers will also enjoy loans up to 70 per cent of the apartment price from the Bank for Development and Investment of Viet Nam (BIDV) at an interest rate of 9 per cent, repayable within 15 years.

Hoang Mai issues zoning plan

The municipal People's Committee has issued plans on land allocation in Hoang Mai District by 2020.

Under the plan, the district's agricultural area will account for 13 per cent, or 527ha, while non-agricultural land will account for 87 per cent, or 3,495ha.

Unused land will account for 0.24 per cent, or 9.53ha, of the total land. During 2011-15, the district will increase the non-agricultural area, while reducing agricultural land.

Social housing offered in Gia Lam

Viglacera Corporation will continue to offer more than 2,000 social housing (low-cost) apartments in the urban area of Dang Xa II in Ha Noi's Gia Lam District.

Each apartment covers an area of 50-70square metres and aims to meet the demand from low-income earners, who faced difficulties in finding houses in the city. The project is scheduled to be completed in the last quarter of 2014.

So far, the corporation has handed over 100 apartments to customers in the area.

Dang Xa covers an area of 68.67ha to the northeast of the capital and is about 12 kilometres from the centre.

It includes 17.3ha of housing land, 13ha of low-cost housing land, 4.68ha of public land and land for office buildings, as well as 25.55ha for green trees, parking and roads.

HCMC hotel rates to stay the same

Hotel rates in HCM City will remain steady, despite the introduction of new rooms last year.

According to the city's hotel association, the supply and demand for high-class accommodation will be balanced this year. No dramatic changes in the room occupation rates are likely, despite the fact that three new five-star hotels will open later this year, it added.

The city has 13 five-star hotels with 4,000 rooms. The average occupancy rate in 2013 was 70 per cent, around the level seen in 2012.

The additional supply is expected to keep pace with the growing demand.

The municipal Department of Culture, Sports and Tourism agreed with that assessment, it said last year.

The average room rate was around US$95.5 per night per room, up 3 per cent from the previous year, which was acceptable as there was a 14.5 per cent increase in capacity.

In the three - to five-star hotel categories, around 1,606 rooms came into the market. The five-star segment added 330 rooms, while the four-star category gained 491 rooms. The three-star hotels added 785 rooms last year.

The number of international tourists visiting the city reached 4.1 million last year. The expectation is that the number will climb to 4.4 million this year.

SBV can now import unrefined gold duty-free

Prime Minister Nguyen Tan Dung has signed a decision permitting the State Bank of Viet Nam (SBV) to import and export unrefined gold without paying any duty.

The decision, which will come to effect on March 15, 2014, is expected to facilitate SBV in the export and import of unrefined gold to produce gold bars for the purpose of stabilising the domestic gold market.

HCM City starts the new year on a high

The city authorities have reported initial achievements in the new year with significant growth rates from the city's business and service sectors in the first month of 2014.

The city attained industrial production growth rate of 1.4 per cent compared with the same period last year, according to the director of HCM City's Department of Planning and Investment, Thai Van Re.

It included a 25.5 per cent growth of the mechanics sector, a 3.8 per cent growth of the food processing industry and 0.6 per cent growth of the chemicals, pharmaceutical and rubber sector.

Businesses in the city have provided sufficient goods for the Tet markets, with reserves of goods valued at VND7.58 trillion (nearly US$360 million), a year-on-year increase of 40.5 per cent.

Companies under the city's price stabilisation programme have supplied higher volumes of goods for the Tet markets, up by 69.4 per cent compared with the same period in 2013, with several kinds of goods meeting 30-60 per cent of the demand in the Tet markets in HCM City and neighbouring provinces.

Total retail sales and service turnover in January were estimated at VND59.5 trillion, a 6.7 per cent increase compared with December 2013 and an increase of 18.2 per cent compared with the same period last year.

Re said the January's CPI rose by 0.4 per cent compared with December and by 0.44 per cent over the same period of 2013.

Prices of eight groups of goods increased slightly in January, with fees for accommodations, electricity, water and fuels, construction materials and transport services fees rising the most.

Prices of food rose by 0.33 per cent and foodstuffs by 0.19 per cent; while medical service costs and pharmaceutical prices fell slightly.

January's exports estimated at nearly $2.4 billion, down by 2.1 per cent over December and 10.3 per cent compared with the same period of 2013. Major decreases were reported for crude oil and coffee, computers and electronic components, footwear and garments.

The city authority granted licences to 1,415 local businesses with total registered capital of over VND7.1 trillion, an increase of 11 per cent in number of licences and 54 per cent in registered capital.

Re said in February the city authorities would focus on inspection and management of prices of goods under the price stabilisation programme, and at the same time to boost trade promotion programmes in the local market and provide goods to the Tet market.

The city will also create favourable conditions to help local enterprises to boost production, promote business and expand overseas markets for their goods and products.

CPI rises slightly on low purchasing power

The General Statistics Office has reported Vietnam’s consumer price index (CPI) rose 0.69% over January compared to the previous month.

The relatively modest rise is attributable to the price stabilisation programmes localities have applied to essential commodities ahead of the Lunar New Year (Tet) Festival. Market purchasing power also remains weak.

The 1.22% increase in transport costs was the month’s most dramatic, followed by housing and construction materials (1.02%); garments, hats, and footwear (0.89%); alcohol and cigarettes (0.83%); restaurants (0.77%), utensils (0.39%); culture, entertainment, and tourism (0.21%); pharmaceuticals and medical services (0.17%); and education (0.01%).

Petroleum rose 0.86% thanks to the December 18 price adjustment of 2.38%.

The monthly CPI edged up 0.7% in Hanoi, 0.4% in HCM City, 0.43% in Thai Nguyen, 0.67% in Haiphong, 0.92% in Thua Thien-Hue, 0.74% in Danang, 0.86% in Khanh Hoa, 1.29% in Gia Lai, 0.4% in Vinh Long, and 0.83% in Can Tho.

The GSO reported January’s gold index fell 1.82% from December levels and 25.74% on an annual basis. The dollar index was down 0.06% compared to the previous month and up 1.03% higher than the same period last year.

HCM City, Japan’s Nemuro boost fishery cooperation

Ho Chi Minh City wants to boost its bilateral partnership with the Japanese city of Nemuro, especially in agriculture and fisheries.

Vice Chairman of the municipal People’s Committee Le Manh Ha made the remark at a reception for visiting Mayor of Nemuro city Shunsuke Hasegawa on January 24.

At the reception, Ha said HCM City attaches importance to promoting its collaboration with Nemuro and other Japanese localities, adding that many Japanese firms are effectively operating their businesses in the spheres of trade, economy and high technology in the city.

He voiced his hope that both sides’ ties will be further boosted this year through delegation exchanges, investment promotion activities and investment collaboration between their enterprises.

For his part, Shunsuke said his delegation’s trip aims to find cooperation opportunities with HCM City firms operating in the production and processing of aquatic products.

The Japanese mayor added his city is in an advantageous position to exploit aquatic resources, especially sword mackerel, noting that around 400 tonnes of the fish have been exported to Vietnam.

He also hoped for the Vietnamese city’s support to enhance the two sides’ collaboration in the fields of culture and human resources in the coming time.

Dong Nai FDI favours high-tech, support industries

Dong Nai is expecting US$700–900 million in foreign direct investment (FDI) capital over 2014, much lower than the US$1.6 billion total seen last year.

Provincial Department of Planning and Investment Director Bo Ngoc Thu said the province will focus its resources on technologically advanced, environmentally friendly projects in support industries, agriculture, services, and infrastructure.

Thu explained its lower FDI target reflects the labour costs saved by technology. Yet, the capital goal does not include FDI projects applying to extend their capital in 2014.

Dong Nai plans to encourage the use of environmentally friendly technologies and shift industries away from labour intensive means of production to modernised, technologically advanced industrial structures.

Authorities will stimulate green agricultural development projects incorporating bio-technology and GAP production processes.

Mai Van Nhon, Deputy Head of Dong Nai’s Industrial Zone Managing Board, said the province has already recorded US$140 million in FDI capital during the first 20 days of January. The figure includes four new projects worth US$70 million and 17 existing projects registering US$70 million in additional capital.

The projects, all of which apply advanced and environmentally friendly technology, follow provincial guidelines.

Exports down 11.5% in January

The General Statistics Office (GSO) has announced Vietnamese exports fell 11.5% in January to an estimated US$10.3 billion.

Domestic businesses contributed US$3.5 billion, down 17.2% from the previous month’s figure and 13.8% compared to the same period last year.

The foreign direct investment (FDI) sector, including crude oil, accounted for US$6.8 billion of the total, down 8.2% monthly and 9.2% in annual terms.

The declines are credited to value slides seen in export commodities such as computers and components (down 16.3%), seafood (18.4%), crude oil (21.4%), wood and timber products (21.6%), steel (31.7%), rubber (35.5%) and coal (47%).

Value declines in annual terms beset important export products including garments, telephones and components, computers and components, crude oil, machinery and equipment, tools, transportation, and coffee.

January’s imports are estimated at US$10.4 billion, 14.6% less than December and 1.9% lower than the same period last year. FDI businesses bought US$5.8 billion of the total, down 7.9% monthly and 1.5% annually, while the domestic sector purchased US$4.6 billion, down 21.9% monthly and 2.3% annually.

Vietnam imported significantly less foreign chemicals, cotton, petroleum, plastics, and transportation.

January’s trade deficit is estimated at US$100 million.

Garment industry needs to cut dependence on imports

Vietnam’s garment sector is too dependent on foreign imports according to Pham Xuan Hong, Vice Chairman of the Vietnam Textile and Apparel Association (VITAS).

Vietnam’s garment exports spiked 16.3% to a record high US$20 billion in 2013,which included garment and textile sales of US$17.9 billion,with the balance coming from ancillary products.

However, major input materials, currently estimated at more than 70%, such as fabrics, labels, zipper pullers, and strings are imported from overseas markets, Hong said,  and Vietnam needs to develop domestic alternatives to ease the situation.

Meanwhile, the Ministry of Industry and Trade (MoIT) predicts that Vietnam’s garment sector will continue enjoying export growth in 2014 thanks to an abundant labour force and effective market expansion.

Vietnamese firms are keeping a close watch on traditional big markets such as Russia, East Europe, the US, Japan and the European Union (EU), while cultivating new markets in Africa and the Middle East.

Infrastructure facilitates housing projects in eastern Saigon

Transport infrastructure is one of the main factors helping property enterprises to market their projects, and projects in eastern Saigon are moving in accordance with the completion of roads crossing the area.

Among projects in the area, there has been at least one enterprise - Khang Dien House Trading and Investment Joint Stock Company - preparing to offer products for sale after the first phase of HCMC-Long Thanh-Dau Giay Expressway and the belt road opened to traffic.

According to Khang Dien, around 160 adjoining houses of Mega Residence located near the two roads will be offered for sale early next month at a price starting from VND13.5 million per square meter, or some VND1.9 billion per unit.

With such price equivalent to that of an apartment, the investor expects that the project will attract many buyers in the coming time now that the traveling time between the site and the city center has been shortened owing to the expressway.

Compared to other areas, property projects in the city’s eastern area comprising districts 2, 9 and Thu Duc are more advantageous as many infrastructure projects have been completed in the past time.

Saigon 2 Bridge connecting Binh Thanh District and District 2 opened to traffic last year after around one year and a half of construction. The bridge facilitates not only transport to the city downtown but also projects located along Hanoi Highway.

Meanwhile, the opening of the belt road and recently HCMC-Long Thanh-Dau Giay Expressway gives a new appearance to District 9 and neighboring areas along the expressway.

A market research of Savills Vietnam indicated that the total number of villas and adjoining houses sold last year was around 200 units and the number of land lot transactions increased by 43%.

According to Savills Vietnam, the environment around projects and the reputations of investors are factors crucial to the sale of housing projects. Land lots continue to be favored due to their lower price and flexibility in construction.

Viettel Post hits award for sustainable development

The military-run Viettel Post Joint Stock Corporation has just received a prestigious award.

The corporation on January 16 was listed among top 20 out of 143 brands and services with sustainable development in 2013 in the “Vietnam’s products and brands with sustainable development” programme organised for the first time by Vietnam Association for Small- and Medium-sized Enterprises.

Viettel Post is also the sole express delivery service supplier to be extolled at this programme, which is aimed to boost the government “Vietnamese people use Vietnamese products” initiative having been deployed nationwide over the past years.

Viettel Post has been highly valued with five criteria at this programme, including highly competitive service, market share with high growth, excellent quality, fulfillment of tax obligations, and reaping many awards over the past years.

At present, ViettelPost is Vietnam’s second largest express delivery service provider who is also the country’s first investor to invest overseas in the sector of express delivery.

Every year, the corporation witnesses a revenue growth rate of 125-135 per cent, while fulfilling all tax obligations, and ensuring incomes for more than 2,000 employees.

In 2013, despite economic woes, Viettel Post officially joined Vietnam’s club of enterprises with revenue of VND1 trillion ($48 million) on November 28, or 17 days earlier than the set target for 2013.

The corporation's express delivery service was recently honoured at the Vietnam's Most Popular Consumer Services programme jointly organised by Hanoi Municipal People's Committee, the city's Fatherland Front Committee, and Hanoi Television. Viettel Post was also listed in the Top 200 at the Vietnam's Golden Star Awards organised annually by Vietnam Youth Union and Vietnam Young Entrepreneurs Association to extol local brand names and enterprises.

Euromoney names Hoa Sen best managed metals group in Asia

Leading international finance publication Euromoney has picked Vietnam’s Hoa Sen Group as the best managed company in Asia in the metals and mining sector for 2014.

The decision made Hoa Sen the first Vietnamese company to ever win the award.

Marcus Langston, regional head of Euromoney Asia, presented the award to Hoa Sen chairman Le Phuoc Vu during the company’s annual general meeting on January 8, two days before the winner was announced globally.

Vu remarked on the occasion, “It seems that the award has come from the sky, we are so surprised to know this. But I think we deserve this win after our continual efforts over many years to pursue good governance, transparency and a clear strategy.”

Langston said his presence was aimed at “recognising Hoa Sen’s great achievements in the 2014 poll of equity analysts. This is an outstanding achievement in management strategy and corporate governance.”

“Hoa Sen’s pioneering of advanced technologies has maximised value for shareholders, employees and society, and it is set to achieve its vision of becoming a leading group in Vietnam and throughout Asia,” he added.

Langston’s analysts of the poll looked at a number of factors, including management accessibility and corporate governance procedures.

“Analysts praised Hoa Sen for its leading role in promoting transparent communication with investors as well as its clear strategy and good visibility. Analysts also noted that Hoa Sen senior management continues to demonstrate prudent gearing, transparency, and a clear articulation of strategy,” Langston continued.

He added that Euromoney received replies from 130 analysts who nominated 207 companies, with Hoa Sen coming in an impressive first.

Hoa Sen reported impressive growth in after-tax profits, 58 per cent, for the fiscal year 2012-2013 despite many challenges facing the domestic steel sector. It announced at the shareholders’ meeting that profits topped VND581 billion ($27.67 million).

In 2013 the group posted total sales of more than 634,000 tonnes of steel products earning revenues of over VND11.7 trillion ($577 million). These figures jumped 32 and 17 per cent on-year. About 280,000 tonnes were shipped to 40 countries and territories, garnering almost $252 million.

Vu said that in the coming time Hoa Sen would continue to expand into regional countries by opening more plants and representative offices in South East Asia.

For 2014, Hoa Sen expects revenues of VND14 trillion ($666.7 million) with after-tax profits of VND600 billion ($28.6 million).

FPT Software revenue victory comes with ambitious goals

FPT Software has set a revenue goal of $130 million for 2014, a 30 per cent increase against 2013.

Speaking at the company’s 15th anniversary on January 13, general director Nguyen Thanh Lam said that in 2013, the company $100 million in revenue and employed a total of 5,000 workers.

FPT Software plans to reach $200 million and 10,000 employees in 2016, said Lam.

Over the past 10 years, the company saw an average growth rate of 49 per cent per year in terms of revenue and 43 per cent in profit. The company has branches and representative offices in 8 countries and is now the leading provider of software outsourcing services in Vietnam and has 219 partners in different countries and territories around the world.

Deputy Minister of Information and Communications Nguyen Minh Hong said that the company’s results for 2013 makes it one of the biggest software firms in South East Asia and noted its important role in the development of Vietnam’s software industry.

“However, Vietnam lacks more companies like FPT Software of a similar business scale to fully maximise on Vietnam’s software opportunities and make the country more competitive on a global scale,” he added.

From the side of state management, he said the Ministry of Information and Communications would establish appropriate favourable mechanisms and policies for the further development of the sector to help Vietnamese enterprises to participate in larger projects in the near future.

ASEAN – a lucrative market for Vietnamese exporters

A trade promotion seminar in Hanoi on December 19 heard Vietnam-ASEAN trade is expected to reach US$75 billion this year, including US$35 billion worth of Vietnamese exports.

However, Le Hoang Oanh, Deputy Head of the Ministry of Industry and Trade (MoIT)’s Trade Promotion Department, said the total figure is not in commensurate with both sides’ potential.

MoIT Asia-Pacific Market Department Head Pham Thi Hong Thanh concurred, noting Vietnam’s trade agreements with ASEAN members—including the ASEAN Trade in Goods Agreement (ATIGA) and the Protocol of Common Effective Preferential Tariffs—offer local exporters numerous opportunities.

These opportunities are only broadened by ASEAN’s network of trade partnerships with China, the Republic of Korea, Japan, India, Australia, and New Zealand.

Seminar delegates urged Vietnamese businesses to upgrade their technology, diversify products, and monitor and respond to market trends. Competitiveness needs improvement ahead of the imminent establishment of the ASEAN Community.

Nguyen Manh Dung, a representative from the Department of Processing and Trade for Agro-Forestry-Fisheries and Salt, said local producers and exporters should ensure their post-harvest and processing technologies and methodologies meet international food hygiene and safety standards.

ASEAN is Vietnam’s third largest export market behind the US and the European Union (EU). Vietnam has committed itself to trade liberalisation via free trade agreements in ASEAN and ASEAN Plus. The removal of tariffs and the imposition of quality and product origin regulations have proved mixed blessings for local businesses.

Trade agreements obligate approximately 90% of existing tariffs must drop to 0% by 2015. Most of the remainder will disappear in the following three years. Vietnamese small and medium-sized businesses will find it especially important to update their market information and identify advantageous footholds before tariff reductions take effect.

Crude farm produce, seafood free from VAT

Unprocessed or semi-processed products of the local farming, husbandry and fishery industries will not be subject to value added tax (VAT), according to a new document issued by the Ministry of Finance.

Over the past time, agriculture and seafood associations have constantly asked for exemption of VAT to help farmers and traders enhance competitiveness in the market besides eliminating bogus exporters whose existence depends on VAT refund.

The finance ministry therefore has recently sent Dispatch 385/BTC-CST to centrally-governed cities and provinces on exempting VAT for local enterprises. The document came out after the Government in late December had issued Decree 209/2013/ND-CP guiding the implementation of the VAT Law.

The new regulation, however, is still vague for certain traders.

The director of a coffee trading and exporting company said the content of the new document can be interpreted that farmers will not have to pay VAT when selling crude coffee, pepper and cashew to enterprises.

However, according to this director, what should be done now is to define the term “crude farm produce” to make clear whether dried coffee bean is crude or not.

“Personally, I think Dispatch 385 is still vague, so I have asked tax authorities about the issue but was told to wait for the next instruction,” said the coffee trader who asked not to be named.

Meanwhile, Dang Hoang Giang, general secretary of the Vietnam Cashew Association (Vinacas), said he understood that crude and semi-processed items will not be subject to VAT. This means such products as crude cashew and peeled cashew will not be taxed but other processed products with added values will be levied with a 5% VAT rate, Giang stated.

Giang noted that the removal of VAT imposed on unprocessed and semi-processed farm produce and seafood items will help companies and State authorities save time and cut costs. It is because local traders have had to pay VAT before exporting products and they will have the tax refunded later, he explained.

Under the new regulation, both enterprises and the State need not spend time doing procedures on VAT payment and refund, he added.

As per the current rule, agricultural and fishery products for exports are all exempt from VAT but businesses have to pay the tax in advance and will be refunded after sending their products overseas.

According to the Vietnam Coffee and Cocoa Association (Vicofa), the payment in advance and VAT refund have created loopholes for several swindlers to set up bogus farm produce exporting enterprises to benefit from the VAT refund.

In particular, at a meeting with Vicofa in late 2013, an official of the industry-trade department of the Central Highlands province of Daklak informed that a number of coffee exporting firms only exist on paper and live on VAT refund. Local tax authorities when looking for the business address of an enterprise found out that the firm does not exist and its office is a motorbike cleaning store only.

The company had got the VAT refund by using false receipts and invoices despite having no export activities, the official reported.

BIDV cautious in foreign partner selection

Bank for Investment and Development of Vietnam (BIDV) is prudently looking for foreign strategic partners after getting approval to list on the Hochiminh Stock Exchange (HOSE).

“We have received many proposals from investors from the U.S., Europe and Asia and are negotiating with them in a prudent way. Normally, it takes a bank from nine to 12 months to shorten the list and select foreign strategic partners,” Tran Phuong, BIDV deputy general director, said at the press briefing on Monday.

BIDV will set aside around 30% of shares for foreign investors, including 20% for foreign strategic partners. However, Phuong declined to disclose the names of foreign investors interested in BIDV.

BIDV will begin trading over 2.8 billion shares on HOSE on January 24 at the reference price of VND18,700 each.

As of the end of 2013, the bank’s total assets reached VND550 trillion, up 12% year-on-year. BIDV is among leading commercial joint stock banks in the country in terms of assets.

Capital flows to river project

Investment capital for the key national-level project to construct a waterway passage for heavyweight vessels to the Hau River in the Mekong Delta’s Tra Vinh province has been finalised.

After several years of discussions, the National Assembly Standing Committee last week issued a resolution allocating VND6.1 trillion ($290.47 million) as government bond-based capital for the first stage of this VND9.781 trillion ($465.76 million) project.

The project initially received government bond-based investment worth VND929.3 billion ($44.25 million) for the 2009-2010 period. However, work was delayed in 2010 due to a lack of capital.

Expected to be completed by 2017, this 46.5-kilometre project running through Tra Vinh’s Duyen Hai and Tra Cu districts will allow 10,000-20,000 dead weight tonnage ships to travel in and out of ports on the Hau River.

“The project is crucial and a life-line waterway for economic development of the whole Mekong Delta region,” said Minister of Planning and Investment Bui Quang Vinh, who last week asked the committee to allocate funding to the project.

“The project must be done as soon as possible in order to facilitate the Mekong Delta region’s socio-economic development and attract more investment,” said the National Assembly’s Vice Chairwoman Tong Thi Phong.

At present, the region’s import-export cargo volume is around 15 million tonnes per year. The region’s two largest seaports, Can Tho and Cai Cui are only capable of accommodating vessels of 3,000-5,000 DWT, leaving the region’s river and seaport systems only capable of handling 20 per cent of the region’s cargo volume.

Up to 80 per cent of the region’s exported and imported cargo must go through the ports of Ho Chi Minh City and Ba Ria-Vung Tau province, causing traffic gridlock in these areas. Moreover, the transport distances results in an average $10 increase on unloading costs for each tonne of goods.

“It is roughly estimated that if cargo is transported directly on the Hau River, we can save about VND10 trillion ($476.2 million) each year until 2020,” Vinh said. “Construction of this project is also vital to the operation of the coal-fired Duyen Hai power centre, because without it, the centre’s port will not be able to receive coal.”

However, some members from the National Assembly’s Finance and Budget Committee who disagreed with the project argued that the project was ineffective because it did not link with the region’s seaport, waterway and expressway planning, and because its investment capital had tripled against the initial estimates.

The project was first approved by the Ministry of Transport (MoT) in November 2007, with the total investment capital of nearly VND3.15 trillion ($150 million). However, in August 2013, the MoT adjusted the project’s details and investment fund, which soared to VND9.781 trillion (over $465.76 million). Japan’s investment consultancy joint venture PortCoast-Nippon Koei made the budget adjustments.

The MoT in late December 2013 approved the project’s environmental impact assessment report, affirming that “the project’s implementation will not adversely affect the environment.”

Vietnam halts chicken imports from South Korea

Vietnam has halted chicken imports from South Korea on fear of spreading poultry epidemic in that country, said an official with the Veterinary Agency Zone 6.

Nguyen Xuan Binh, director of the agency, confirmed to the Daily on Monday on the import suspension decision by the agriculture ministry’s Animal Health Department to prevent bird flu from entering Vietnam.

Imports of whole frozen chickens from South Korea for years have been safeguarded against diseases, as chickens bound for Vietnam were raised in safe areas, and each chicken also came with a safety certificate. However, as the epidemic on poultry in South Korea has spread to several localities there, the import ban for a certain period has been decided, Binh said.

The Daily, however, still observed many venues in HCMC selling frozen chickens imported from South Korea. Explaining this, Binh said those products might be from shipments imported into Vietnam prior to the ban.

The majority of whole frozen chickens imported into Vietnam are from South Korea. However, Binh could not provide the exact amount of frozen chickens imported into Vietnam last year, saying a sizable amount is also imported through Hai Phong Port in the north.

In HCMC alone, the city’s Veterinary Agency issues permits for some 2,000 tons of imported meat for sales on the market, with around 50% being poultry meat, especially chicken.

While traders boost imports of cattle and poultry products, the local husbandry industry is incurring huge losses due to a sharp price fall.

On the domestic market, the price of white-feather chickens has tumbled to VND15,000-17,000 a kilo compared to VND30,000 a kilo three weeks ago. The production costs, according to experts, amount to around VND30,000 a kilo.

According to the Husbandry Department under the agriculture ministry, the total meat output last year was some 4.3 million tons, rising 1.49% against 2012. This amount included 3.2 million tons of live pigs, 747,000 tons of live poultry, and some 370,000 tons of live buffaloes and cows.

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