Hanoi budget income exceeds 2015 goal

Hanoi is expected to collect nearly 147 trillion VND (6.5 billion USD) for the State budget since the beginning of the year, completing 103 percent of the yearly target.

The information was released at a recent meeting on the city's implementation of socio-economic development and State Budget tasks during the 2011-2015 period, as well as socio-economic development plans for 2016.

The event reviewed the outcomes of the city's socio-economic development performance and budget execution in 2015.

According to a report by the committee, State budget expenditure was estimated at 70 trillion VND (3.1 billion USD), meeting 118 per cent of the annual forecast.

Hanoi People's Committee Chairman Nguyen Duc Chung said the city maintained a stable growth rate in the reviewed period, with gross regional domestic product (GRDP) estimated to rise 9.3 percent by year-end, the highest level over the past four years.

The committee's report said the city's index industrial production, largely contributing to the overall economic growth, increased by 8.05 per cent over the same period last year.

The construction industry also experienced a solid growth of 12.14 percent. The service sector grew by 9.91 percent, and the agriculture sector saw growth of 2.47 percent.

According to the report, commodity prices are kept under control. The total retail revenue of goods and services increased 11.7 percent.

Export turnover was calculated to rise 2.5 percent to 11.4 billion USD, and the consumer price index was estimated to climb 1 percent.

The capital has so far welcomed nearly 2.24 million international tourists, a year-on-year rise of 9.6 percent.

The city strives to record a gross regional domestic product (GRDP) growth of between 8.5 percent and 9 percent, and a GRDP per capita ranging from 85 million and 87 million VND (3,772-3,861 USD) in 2016.

Despite these achievements, the city is still facing many difficulties such as ineffective administrative procedures, illegal construction and encroachment on public land, insufficient firefighting systems, food safety issues and environmental pollution, Chung said.

He highlighted that 2016 would be the first year of implementing the socio-economic development plans for the 2016-2020 period.

Chung asked the municipal authorities to promptly take measures to speed up the economic restructuring process, ensure macroeconomic stability, improve the local investment climate and ensure social welfare, while striving to fulfil or surpass the yearly economic growth target.

Vocational training sector to restructure school network

The vocational training sector plans to continue rearranging its school network to enhance their effectiveness and relevance to labour market demands with the aim of training 2.15 million workers in 2016.

At a press briefing in December 24, the General Department of Vocational Training (GDVT) said the restructuring in 2016 will go along the direction of reducing the number of schools while expanding training scale and improve quality.

At the same time, new training institutions will be established in disadvantaged areas, particularly in the Northwest, the Central Highlands and the Southwest.

The private sector will be welcome to open vocational schools, and the system of public schools will be reshuffled, with more financial autonomy to be given to them.

International cooperation will be boosted in accordance with the plan for international cooperation in education and vocational training to 2020.

In 2015, vocational schools across the country enrolled nearly two million students, meeting 92.1 percent of the yearly target, of whom more than 1.7 million joined short-term courses of less than 3 months.

As of June 30, 2015, there wre 1,467 vocational training institutions across the nation, including 190 colleges, 280 schools and 977 training centres.

GDVT Director General Duong Duc Lan said Vietnam is one of the leading countries in the region in terms of occupational skills, noting that the country came first three times at the ASEAN Skills Competition.

He also called for more active communication work to help enhance the awareness of vocational training among the community.

Tan A Dai Thanh establishes plastic affiliate

The Tan A Dai Thanh Group has established a new subsidiary, Stroman Vietnam Plastic Corporation, in a move to participate in the domestic plastic tube production market.

The company's factory, with a total investment capital of 70 million VND, will be also developed in the northern province of Hung Yen, making it Tan A Dai Thanh's largest-ever project.

The 6-hectare factory will use plastic raw material sourced from the world's leading brands such as Borouge, SCG, AGC Group and Sabic, to churn out quality and environment-friendly plastic tube products, the group said in a latest statement.

Launched in 1993, Tan A Dai Thanh is now one of the leading manufacturers of water tanks and solar water heating products in Vietnam.

As of November, the group has opened eight factories in Hanoi, Ho Chi Minh City, Hung Yen, Da Nang, and Nghe An in addition to those in Dak Nong, Can Tho and Laos. It also has 12 affiliates besides a network of 135 branches and approximately 22,000 sale outlets nationwide.

SBV hopes for 18-20 percent credit growth next year

The State Bank of Vietnam (SBV) expects credit growth at 18 – 20 percent in 2016, the bank’s Deputy Governor Nguyen Thi Hong said on December 24.

Credit grew by 17.17 percent as of December 21, higher than that of the same period from 2011 to 2014, the SBV said, estimating the whole year’s credit expansion at 18 percent.

The bank reported that credit flowed into different fields of production and business, especially sectors prioritised by the Government. By the end of November, credit to the hi-tech industry surged by 44.78 percent and to agriculture and rural development by 10.8 percent.

The loan supply continued to be managed in line with the simultaneous goals of stabilising exchange rates and forex markets, controlling inflation, attaining appropriate credit growth, and supporting credit institutions to buy Government bonds and tackle bad debt.

By November 30, about 99.6 percent of credit institutions’ non-performing loans estimated at the end of September 2012 were settled. Bad debt of the entire system was cut down to 2.72 percent, compared to the targeted 3 percent, said Bui Quoc Dung – Director of the SBV’s Monetary Policy Department.

In addition to the active employment of measures to restructure credit organisations, the attained bad debt solving outcome has greatly contributed to improving liquidity, reduce overall interest rates and fuel credit expansion, thus energising economic growth, he noted.

The central bank also reported that overall interest rates this year declined by 0.2 – 0.5 percent annually, strongly supporting production and business activities while ensuring stable monetary and forex markets.

Meanwhile, the whole sector’s mobilised capital rose by 13.59 percent by December 21, a favourable condition for banks to increase credit supply.

Current lending interest rates has gone down 0.3 – 0.5 percent from the end of 2014, equivalent to a 50 percent nosedive compared to the end of 2011. Deposit interest rates has dropped 0.2 – 0.5 percent and remained at a relatively low level.

Dung said exchanges rates and the monetary market were further stabilised in 2015, the confidence in the VND was promoted, the dollarisation in the economy eased, and the legal demand for foreign currencies was satisfied.

Positive data recorded in the forex market reflected the effectiveness of monetary policies, including the 3 percent increase in the inter-bank VND/USD exchange rate and the widening of VND/USD trading band to +/- 3 percent as a timely response to negative impacts caused by international financial markets.

Deputy Governor Hong said the SBV is looking to manage exchange rate policies more flexibly and take into account global factors so as to ease the preference for foreign currencies and raise the stature of the VND.

For 2016, it will proactively and flexibly carry out monetary policies in combination with fiscal and macro-economic policies in order to curb inflation within the set target of 5 percent, ensure macro-economic stability and fuel the economic growth rate at about 6.7 percent.

The central bank will also align interest and exchange rates to the macro-economy, inflation, and domestic and global monetary markets, continue restructuring credit institutions and addressing bad debt, while enhancing the supervision and monitoring of banks, Hong added.

Dong Nai takes drastic measures to increase GRDP

The southern province of Dong Nai has introduced a myriad of measures to achieve a Gross Regional Domestic Product (GRDP) growth rate of 8-9 percent in 2016.

The province will give priority to improving the business climate, streamlining administrative procedures, ensuring transparency as well as enhancing responsibility of administrative agencies, said Chairman of the provincial People’s Committee Dinh Quoc Thai.

He highlighted that the province will step up economic shake-up in combination with growth model shift to increase quality, efficiency and competitiveness by 2020.

In addition, Dong Nai will also focus on developing infrastructure, especially roads connected to urban areas and industrial parks, expressways, and rural facilities. The province will join hands with relevant ministries and agencies to speed up the implementation of key projects such as Ben Luc- Long Thanh and Dau Giay- Phan Thiet expressways and Tan Van- Nhon Trach road.

As part of the efforts to increase the competitiveness of local enterprises during international integration process, the province will develop support industry to reduce dependence on foreign materials.

It plans to create favourable conditions for small- and medium-sized enterprises to access credits to serve their technological renovation and organise supply-demand connection conferences.

The province will assist businesses in building their trademarks and promoting trade in foreign markets.

Local production has enjoyed stellar performance in 2015, with a GRDP value of 63.8 trillion VND (2.8 billion USD), rising 11.75 percent from the previous year.

The province pocketed 14.7 billion USD from exports, up 11.5 percent year-on-year, and attracted 2.3 billion USD in foreign investment.

Banks' reputation impacts stocks

The higher the communication reputation of banks, the higher their stock prices, the Vietnam Report Joint Stock Company said.

The company's report on the banking sector with the topic ‘Communication reputation and stock price fluctuations' released by the company on December 23 said the reputation of corporations has been considered one of the decisive factors in forming risks or expectations. Investors believe that good investment opportunities will come from prestigious companies in the market.

Moreover, the reputation of businesses also conveys important information on growth potential in the long-term as well as their attractiveness to investment selection. Stock price fluctuation has been seen as one of the signs for the belief of investors towards the value of businesses.

The report said securities prices of the three most prestigious banks this year, which included the Bank for Foreign Trade of Vietnam (Vietcombank), Vietnam Joint Stock Commercial Bank for Industry and Trade and Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank) have been on an upward trend.

Vietcombank top the list as its key business targets last year surpassed set levels. Its mobilised capital saw a surge with return on assets reaching 0.9 percent and return on equity touching 10.5 percent.

This meant that banks have not had bad news affecting their reputation, according to their shareholders and investors. In reality, the stock market has been an extremely sensitive place for information relating to listed companies.

This is the reason stock prices have been considered a relatively exact measure for a firm's reputation and reliability. On the other hand, a company's reputation could also have a significant impact on their stocks.

The report also said that the ranking this year saw some newcomers such as Tien Phong Bank (TPBank), Vietnam International Bank (VIB), Maritime Bank and PVCombank.

The company applied a media analysis in making these reports, through coding and analysing articles about 31 selected banks in the sector published in newspapers from July 2014 to June this year. Of the 31 banks, 26 had information about their development prospects in the future. This could be seen as a positive result for the banking sector's image and operations.

Ha Giang eyes tea sustainable development

Experts gathered at a workshop on December 23 to discuss ways to develop the tea sector in the northern mountainous province of Ha Giang.

The event was jointly organised by the provincial People’s Committee, the Netherlands Development Organisation (SNV) and the Department of Cultivation under the Ministry of Agriculture and Rural Development.

Participants focused on effective tea cultivation methods to help improve farmers’ incomes in the ethnic minority community.

They also discussed ways to strengthen connections among stakeholders to enhance the value of local tea products.

The province aims to produce 120 tonnes of fresh tea per year by 2020 and become one of the largest tea producers, processors and exporters in the country.

Ha Giang has nearly 20,500 hectares of tea plantations, the third largest area in the nation. The majority is covered by the “Shan tuyet” variety which has been shipped to 25 nations around the world.

According to the province’s plan for agriculture restructuring from 2015-2020, tea has been selected as one of its key products.

The province has devised numerous incentives to develop brand names for local tea, contributing to poverty reduction and hunger eradication among local ethnic minorities.

In 2011, Cao Bo tea in Vi Xuyen district successfully met organic production regulations issued by the International Federation of Organic Agriculture Movements.

More than 200 tonnes of local organic tea are exported to Europe and the US every year.

Firms struggle in free trade

Vietnamese companies, especially small- and medium-sized, lack the knowledge to take advantage of the country's international integration, Vu Kim Hanh, chairwoman of the Business Association of High-Quality Vietnamese Goods, has said.

A series of free trade agreements the country has signed or plans to sign would provide Vietnamese businesses with the opportunity to expand their markets, but grasping it is a big challenge, she said.

Many are struggling even in the domestic market, so making headway in the international market is not easy, she said.

Each FTA comes with specific regulations, and learning about them and complying with them is imperative if businesses want to take advantage of their benefits, she said.

Truong Minh Huy Vu, director of the HCM City University of Social Science and Humanities' Centre for International Studies, said many companies feel "stifled" by the volume of information emanating from the FTAs.

For instance, the Trans-Pacific Partnership agreement has been made public, but it is too long for businesses to comprehend, he claimed.

It is not easy for them to fully understand the information either, he said.

He said there are three sources that provide the information to the businesses: the Ministry of Industry and Trade, which directly negotiates FTAs; researchers; and business groups and companies that do business with the countries signing the FTAs with Viet Nam.

Many surveys have found that businesses are unclear about the provisions of FTAs, and this prevents them from capitalising on opportunities and preparing to cope with challenges, he said.

However, supplying information to businesses is not a simple task since every business has different information needs, which information suppliers need to understand, he said.

Pham Sy Thanh, director of the Chinese Economic Study Programme at the Viet Nam National University in Ha Noi, said the Government should ensure business groups provide information about the market and integration to their members.

It is an expensive business for a company to acquire information or get involved in a trade-related lawsuit, he said.

Businesses expect industry associations to play their role better, he said.

Huynh Van Thon, general director of Loc Troi Group, said Vietnamese companies should not remain passive about learning about FTAs if they want to institute strategic changes.

Da Nang seeks $768m investment

The central city has called for investment in 19 Public-Private Partnership (PPP) projects, with total capital of VND16.5 trillion (US$768 million).

The city's secretariat said these projects were classified under Build-Operate-Transfer, Build-Transfer, Build-Lease-Transfer and Operation and Management models.

These projects are key for building up the city as a "green city", following the introduction of an adjusted master urban plan for 2030 and 2050, which includes ring roads, bridges, wholesale markets for livestock and farming products and a solid waste management project, as well as tourism initiatives, automatic parking tolls, a theatre and medical projects.

Among the 19 key projects are Hoa Lien Water Station, Lien Chieu port, Software Park No 2 and a new waste treatment plant and trash-powered generator, as well as Ngu Hanh Son Cultural and Historical Park. These are the largest projects, each requiring funds of VND2.2 trillion ($105 million) to VND4 trillion ($190 million).

The city said the feasibility Studies for PPP projects would soon commence and approval for construction was expected shortly.

The city also plans to build the first Botanical Park project on 200ha of land in Hoa Vang District in 2016.

In 2013, the World Bank agreed to provide $202.4 million in funding for the City Sustainable Development Project, which had a total cost of $272.1 million.

JICA has helped Da Nang complete the pre-feasibility studies for two projects, the Hoa Lien water supply plant and the Khanh Son waste treatment plant, since 2012 and supports private companies in the city, helping improve their skills and management of PPP projects.

HCM City boosts trade links

Links between businesses in HCM City and other cities and provinces in the south have improved significantly as a result of a trade co-operation programme started in late 2011.

Speaking at a conference in HCM City on Wednesday on matching demand and supply, Le Van Khoa, vice chairman of the city People's Committee, said the programme has helped HCM City-based distributors and retailers find suppliers of quality products.

It has also helped manufactures find steady outlets for their products, making them feel secure about investing more into expansion and improving product quality, he said.

More and more businesses have signed up for the programme, with 965 contracts worth more than VND20 trillion (US$888.88 million) signed as of last month, he said.

HCM City firms bought goods worth VND13.5 trillion ($600 million) and sold for VND6.5 trillion ($288.89 million).

Nguyen Hoa Hiep, director of the Dong Nai Province Department of Industry and Trade, said activities to link up suppliers and buyers help small-scale production units sell their products to modern distribution systems in HCM City.

Her province supplies large volumes of pork, rambutan, durian, grapefruit, banana, and other products to the city, she said.

It would make efforts to sustain the quality of these products, she promised.

Mai Thi Anh Tuyet, director of the An Giang Province Department of Industry and Trade, said businesses in her province that are in the programme enjoy annual growth of 20-30 per cent.

"With the country's increasing international integration, the province in collaboration with businesses will focus on developing supply sources that ensure food hygiene and safety and traceability of origins, which would create a solid foundation for our products."

Nguyen Thi Hong, former deputy chairwoman of the HCM City People's Committee, said the city has huge demand for many kinds of products but on its own can meet only 20-30 per cent of it.

She hoped more businesses would join the programme in the coming years to increase supply of quality goods. Distribution networks should be expanded to make it easier for customers to access the products, she added.

Le Ngoc Dao, deputy chairwoman of the HCM City Department of Industry and Trade, said product quality has improved significantly thanks to the programme.

She said authorities in provinces should persuade more and more farmers to apply good agricultural practices to improve product quality.

Distributors and retailers in the city would prioritise purchase of VietGap certified products, she said.

Deputy Minister of Industry and Trade Do Thang Hai hailed the programme and urged HCM City and the other cities and provinces to prevent fakes and fraud.

At the event on Wednesday 273 contracts were signed between distributors, restaurants and hotels in the city and specialty manufacturing establishments, agricultural co-operatives, and others.

More than 1,300 producers, distributors, wholesale markets, restaurants, hotels, and eateries from 30 provinces and cities took part in the meeting.

Web trading model Agromart opens

The Trade Promotion Centre for Agriculture under the Ministry of Agriculture and Rural development inaugurated the Agro-forestry-fisheries online market (Agromart) on Tuesday.

Agromart is expected to attract 1,000 members to participate with 3,000 products.

Agromart will be connected with domestic and international e-commerce sites in order to encourage enterprises to participate in the potential trading model to enhance their competition in the context of international integration.

Transactions of businesses, organisations and individuals through the e-commerce market at agromart.com.vn are expected to help managers build development strategy for the sector, as well as market forecasts.

The online market is also hoped to help enterprises grasp market's tastes, information and production orientation for enterprises and farmers.

As it is getting harder for consumers to distinguish safe farm produce, the e-commerce market is considered a channel for buyers to choose products with certification as well as clear origin, said Nguyen Nhu Tiep, director of the National Agro-forestry-fisheries Quality Assurance Department.

The director also said that the site would help consumers select safe farm produce because the products were controlled from roots and were certificated by authorities before selling to consumers.

This is also the bridge for domestic and international enterprises to exchange, connect and trade technological and service products in the agricultural sector, said Dao Van Ho, director of the trade promotion centre for agriculture.

The site will create opportunities for businesses to conduct direct transactions with each other in any place and at any time, he added.

Simultaneously, the site will be a channel for businesses to introduce and promote their products, images and cooperation potential for large customers, Ho said.

Thailand among top ten foreign investors in Vietnam

Thailand is one of top ten foreign investors in Vietnam with 300 valid projects, reported a recent Vietnam-Thailand trade and investment promotion workshop in HCM City.

According to the Thai Ministry of Commerce, Vietnam ranks 11th among exporters to Thailand while Thai products accounted for 20.40% of Vietnam’s total import value.

Thailand exports fuels, polymer materials, motorbikes and spare parts, chemicals, steel, air conditioners and components and fresh fruits to Vietnam.

Meanwhile it imports from the country electrical household appliance, steel, electronic products, crude oil, seafood, computers, spare parts and components, coffee, tea and pepper.

Two-way trade between Vietnam and Thailand has constantly increased in recent years and hit US$11.62 billion last year. It is expected to reach US$15 billion by 2020.

MoIT seeks to unlock overseas markets

Vietnamese products are increasingly being showcased at Lotte Mart shopping centres across the Republic of Korea (RoK) as part of an initiative by the Ministry of Industry and Trade (MoIT) to stimulate retail sales in the East Asian market.

After two years of aggressively implementing the program –  VK Connect – the MoIT firmly believes it is making some headway in introducing a select group of 101 products into the difficult to satisfy consumer market.

“Nationwide sales are now averaging US$8-10 million per month, which though modest is a decent starting point,” said MoIT Deputy Minister Ho Thi Kim Thoa in reference to the program.

Thoa said the initiative is currently touting the products of 22 companies but was quick to point out that expanding their footprint in the market doesn’t just benefit the specific manufacturers and retailers involved.

“When domestic companies showcase quality products abroad, it has the effect of raising Vietnam’s image as a nation,” she said and it establishes a base for other companies to later build upon and expand their horizons.

She noted that at Lotte Mart Ga Seoul, the shopping centre is jam packed with Vietnamese products like cashew nuts, frozen shrimp, dried fish, rice noodle, coffee, woollen carpets, kitchen utensils, and blankets.

At the international food aisles in other stores including Lotte Mart Uiwang and Lotte Mart Kwangbok – red pepper paste, fish sauce, instant noodles and soda made by Vietnamese manufacturers pack the shelves.

On the same floors, a variety of other familiar eye-catching household items made in Vietnam can be seen.

There are many other valuable lessons to learn from the project the MoIT Deputy Director said, citing Lotte Mart’s method of displaying products in a pyramid. This is a sales trick aimed at catching the consumers eye and “making products look multi-dimensional.”

All told Vietnamese goods are now available in 114 Lotte retail establishments throughout the RoK and the prospects look promising for retail sales continuing to climb in the market in the coming time.

“The MoIT is participating in several similar initiatives in markets around the globe to spark consumer interest in Vietnamese goods,” said Thoa, specifically mentioning an initiative with the Casino group in France and Metro Cash & Carry in Germany.

Notably, a Vietnamese Goods Week is set for Paris in June 2016.

Samsung-backed startup contest names Vietnamese winners

Two Vietnamese startups, an agriculture tech developer and an online flower delivery platform, have been selected as the winners of the Go Live! Vietnam Venture Cup, a Samsung-backed competition that sought to find, fund and build entrepreneurial talents.

Mimosatek won the “Startup Fund” category, whereas Hoayeuthuong claimed the top prize for the “Growth Fund,” both of which came with a US$15,000 grant, after the final competition round in Ho Chi Minh City on December 22.

As they are named, the “Startup Fund” was meant to support newly-founded startups, and the “Growth Fund” was for established firms with remarkable growth.

The Go Live! Vietnam Venture Cup was also sponsored by venture capital firm IDG Ventures Vietnam, online education provider Topica Edtech Group, and startup community Launch.

Mimosatek was founded in November 2014 with only two members, but has since expanded its staff to 12, according to the company’s website.

Team members of Hoayeuthuong pose for a group photograph with their prize at the Go Live! Vietnam Venture Cup in Ho Chi Minh City on December 22, 2015 in this photo provided by the organizers.

The firm aims to apply the “Internet of Things” trend to agriculture, by developing apps and hardware products that help farmers maximize productivity at minimal cost and crop risks.

In the meantime, Hoayeuthuong was set up by tech engineer Pham Hoang Thai Duong in October 2010, with an objective of becoming a flower delivery expert.

The Ho Chi Minh City-based startup allows orders online and now has shops in Hanoi, Danang and a dozen other provinces across the country.

From the initial investment of US$700, the company is seeking finances to expand production and build an ecosystem for Vietnam’s flower sector, which Duong said could be worth US$1 billion in the near future.

“We expect that Vietnam will be one of the five countries with the most developed flower sector in the next five years,” he told newswireVnExpress in a November interview.

Both Mimosatek and Hoayeuthuong are ‘incubated’ by the Founder Institute Program, an initiative funded by Topica Edtech Group.

Pham Hop Pho, vice president of IDG Ventures Vietnam, said at a press meeting to introduce the competition in October that Vietnamese startups have begun shifting from copying models from other countries to develop from their original ideas.

The Go Live! Vietnam Venture Cup will thus enable such startups to have more access to funding and networking with global investors, he said.  

The organizers will also try to make Go Live! Vietnam Venture Cup an annual competition in which the local startup community will be able to receive not only funding but also experience and inspiration from others.

Vietnam tourism grows rapidly

Five years since the tourism development strategy by 2020 with a vision to 2030 was implemented, the tourism sector has successfully fulfilled its set target, meeting all three indicators, namely the number of visitors, revenue and infrastructure.

Vietnam welcomed nearly 7.9 million foreign visitors and 38.5 domestic tourists last year. The respective figures in the 11 months of this year were 7 million and 53.8 million or 6.7% and 46% higher than the set target for this year.

The sector’s contribution to GDP increased year by year as its revenue rose from VND130 trillion in 2001 to VND230 trillion in 2014 and reached nearly VND313 trillion in 11 months of this year.

The indicator of infrastructure and human resources development was also fulfilled. Around 14,535 accommodation establishments are available in the country this year.

Five-star hotels and luxury resorts have been built at beaches in the central, south-central coastal and northern regions and Phu Quoc island.

The hotel industry has attracted much attention from domestic and foreign investors. The joining of world’s leading hotel management groups like Accord, IHG, Mariot, Movenpick, Park Hyatt, Starwood, Hilton, Victoria and the setting up of hotel chains by Vingroup, Sun Group, Muong Thanh, A25, Gold Hotel, and H&K have helped improve the quality and quantity of hotels and services.

The number of people working directly and indirectly in the tourism industry grew by 13.4% to around 1.2 million.

The tourism sector has become a key economic industry and made a significant contribution to GDP and the poverty reduction process.

Transporters must cut prices with oil

Transport businesses must adjust transport fees in accordance with changes in fuel prices; otherwise, they may have their business license withdrawn, according to a Ministry of Finance document released yesterday.

The Ministry of Transport (MOT) is required to strengthen the management of transport fees by asking transport businesses to declare transport fees and collaborate with Department of Finance to examine and inspect the businesses' declaration and listing of transport fees. Violators must be subjected to strict punishment.

Previously, the finance ministry sent a document on August asking the MOT to urge businesses to reduce transport fees given that fuel costs had reduced.

By December 18, fuel prices had been adjusted for the 23rd time since early this year, according to the Ministry of Industry and Trade.

There has been a sharp decline in fuel price since mid September this year while transport fees remain unchanged, Head of the Ministry of Finance (MOF)'s Cost Management Sector, Nguyen Anh Tuan told Tuoi Tre (Youth) newspaper.

Diesel 0.05S price in December 18 dropped to VND11,980 (50 US cents) per litre, a reduction of 25.5 per cent compared to that in July 1. The drop in diesel price helped to reduce 8.9 to 11.5 per cent of vehicles' transport costs, according to the MOF.

Based on the drop in fuel price, the MOF asked the MOT to direct localities' transport departments and finance departments to collaborate with related authorities to strengthen management of transport fees to help stabilise costs, said Tuan.

While fuel costs, which account for 30 to 40 per cent of transport fees, dropped sharply, it is unreasonable that transport fees remain unchanged, said Tuan.

The economy and consumers often benefited from a drop in fuel price; however, transport businesses had delayed reducing fees or offering a rate that was not equivalent to the decreasing trend of fuel price for the last two years, said former Deputy Minister of Industry and Trade, Phan The Rue.

Management agencies needed to be more determined and have tighter inspections over price management especially when transport fees have a big impact on goods prices, Rue said.

Due to inappropriate price management mechanisms, the law on price had not yet been fully implemented, said former Deputy Head of the MOF's Market and Price Research Institute, Ngo Tri Long.

Businesses should be authorised to determine fees by themselves and be exempt from reporting to the government when fees are adjusted, said Long.

It is necessary that the authorities follow and inspect businesses' activities. Violators need to be strictly punished and publicised, said Long.

"If businesses delay reducing fees, transport management agencies will not only impose administration fine but also withdraw business licence," said Tuan.

"The Government may need to suspend businesses' operation if delays in price reductions continue," said Rue.

Cushman Wakefield Vietnam appointed new head of Valuation and Research

Cushman & Wakefield Vietnam on December 16 appointed Vo Van Huu Phuoc as its director of Valuation and Research Department.

Phuoc has over nine years of real estate valuation and consultancy services experience within Vietnam, running valuations of a vast array of properties including industrial, office, retail, hotel and residential property on a sale/lease basic for both international and local clients. He has provided expert advices to a broad range of clients from landlords, developers to investors and investment funds, both local and overseas.

Upon joining Cushman & Wakefield Vietnam, Phuoc achieved the position of senior property valuer. He was recognised as the employee of the year in 2011, 2012 and 2014. In early 2012, he was promoted as valuation manager. After accomplishing significant works in 2013, he was promoted as senior valuation manager in early 2014.

Phuoc has been handling more than 250 assignments of valuation and consultancy. Key clients that Phuoc has recently advised upon his joining to Cushman & Wakefield Vietnam from 2011 to current include Pepsico, CocaCola, Deutsche Bank, HSBC, ANZ, UOB, HDBank, VinaCapital and Vingroup

 “Phuoc has been the beating heart of our valuation business since he joined five years ago, building an exceptional business and best in class team. The appointment underpins Cushman & Wakefield’s desire for ongoing sustainable growth of our businesses with our long term, high performing and respected leaders the key to this success,” said Alex Crane, general manager of Cushman & Wakefield Vietnam.

VDB sells $26.6m of G-bonds

The Viet Nam Development Bank sold VND600 billion (US$26.6 million) worth of Government-guaranteed bonds (G-bonds) on December 21.

The Viet Nam Development Bank sold $26.6 million worth of Government - guaranteed bonds on December 21.- Photo doanhnghiepvn.vn

According to the G-bond auction organiser, the Ha Noi Stock Exchange, the bank offered VND850.7 billion ($37.7 million) of three-year, five-year and 15-year bonds.

After the auction, it sold all VND400 billion ($17.7 million) of the three-year bonds offered at a coupon rate of 6.4 per cent per year.

Of the total VND300 billion five-year bonds offered, the bank sold VND200 billion ($8.9 million) at a coupon rate of 7.35 per cent per year.

HNX said there was no investor demand for 15-year bonds, thus the entire VND150.7 billion ($6.68 million) of bonds of this type was unsold after the auction.

More homebuyers benefit from VND30-trillion loan package

Banks had committed to lending VND21.52 trillion (US$957.5 billion) to eligible property developers and individual homebuyers by the end of October under the VND30-trillion home loan program sponsored by the Government.

Commercial banks had disbursed VND13.5 trillion (45%), according to the Housing and Real Estate Market Management Department under the Ministry of Construction. The department said the pace of disbursement had accelerated in recent months.

By late February this year, banks had pledged total loans of VND10.8 trillion and disbursed around VND6.19 trillion, meaning only 20.6% of the package had been disbursed since it was launched 20 months ago. However, disbursements have reached 45% over the past eight months and loan commitments have also surged.

With the faster disbursement rate, lender banks are expected to complete their lending commitments for the whole package by the end of the first quarter next year.

As of end-October, banks had struck deals to provide 56 projects with more than VND6.8 trillion, including VND3.28 trillion for 15 projects in Hanoi and VND1.39 trillion for nine projects in HCMC.

Of the 56 projects, banks have disbursed VND3.43 trillion for 53 projects. Hanoi has 15 projects worth VND1.45 billion in Hanoi while the number in HCMC is nine with VND956 billion.

Around 31,400 homebuyers have borrowed a combined VND14.69 trillion from the program, with loans for commercial apartments accounting for the largest amount of VND8.78 trillion and those for budget apartments making up VND4.57 billion.

Banks have disbursed a total of over VND10 trillion for 31,364 households and individual buyers. Hanoi took the lead with VND4.49 trillion disbursed for 13,555 households and the respective figures in HCMC are VND2.37 trillion and 2,371 households.

In the coming time, the Ministry of Construction will join hands with the State Bank of Vietnam to adopt new measures to step up disbursements for social housing projects including those converted from commercial developments.

Housing inventories have plunged over the past two years

* The Housing and Real Estate Management Department has estimated the total value of real estate inventories nationwide at VND53.25 trillion (around US$2.37 billion) as of November 20, down VND75.3 trillion or 58% against the first quarter of 2013.

A report by the department indicated the inventory of apartments totaled 8,800 units valued at some VND13.2 trillion and low-rise houses numbered 7,787 units worth VND13.9 trillion.

Meanwhile, residential land lots in stock were 6.3 million square meters worth VND21.6 trillion and the inventory of commercial land lots totaled 1.6 million square meters worth VND4.5 trillion.

The report said that in HCMC alone, property inventories totaled VND10.5 trillion, including VND7.5 trillion from apartments.

Real estate experts forecast inventories in the sector will continue to decrease as the market is recovering after years of stagnation. However, they cast doubt on the sustainable development of the market given price increases and signs of oversupply in the high-end apartment segment.

Jan-Nov phone exports soar 29.6%

Export revenue of phones and phone parts totaled US$28.5 billion in the first 11 months of this year, up a staggering 29.6% compared to the same period last year, according to data of the General Statistics Office (GSO).

The figure was well above US$20.7 billion in export revenue from apparel, which became Vietnam’s second biggest export earner in the period.

Made-in-Vietnam phones and phone components have been exported to multiple markets including the European Union (EU), the United States, United Arab Emirates, Hong Kong and South Korea.

With the strong growth, Vietnam expects phone export turnover to exceed US$30 billion this year. Last year, phones and phone parts brought total export revenue of more than US$23.6 billion, accounting for 15.7% of the country’s total exports.

The upsurge in phone export revenue is credited to the phone and electronics production complexes of Samsung, Microsoft and LG in northern Vietnam.

According to the GSO, the group of electronics, computers and computer components came third in terms of export revenue in the year to November, which stood at US$14.3 billion, up 38.2% year-on-year.

Besides, export of machines, devices, equipment and accessories fetched US$7.4 billion, up 11.2% year-on-year. High-tech products contributed a great part to the country’s total exports.

Total exports in the first 11 months neared US$148.7 billion, up 8.3% compared to the same period a year earlier, while imports went up 13.7% to US$152.5 billion, hence a trade deficit of US$3.8 billion, equivalent to 2.5% of total exports in the period.

Rice exports to China in decline

Vietnam’s rice shipments to China have waned in the past few years even though the northern neighbor remains the biggest rice importer of Vietnam, according to Professor Dr. Nguyen Quoc Vong of RMIT University.

Vong told a conference on improving the competitiveness of businesses in the agricultural value chain in Can Tho City on Wednesday that China bought over 65% of Vietnam’s total rice exported in 2012-2013. But the proportion slid to 53% last year and 47% in the first half of this year.

A Ministry of Agriculture and Rural Development report showed that Vietnam shipped abroad US$2.6 billion worth of more than 6.2 million tons of rice in January-November. China made up 34% of the total volume though it is still the biggest importer of Vietnamese rice in the period.

Vong said tougher competition from rivals including Thailand, Cambodia and Pakistan was attributable to the fall in Vietnamese rice exports to China. In the future, Myanmar will join the race as it plans to export a large amount of rice to the Chinese market.

According to the Vietnam Food Association (VFA), China was the biggest rice importer of Cambodia in the first months of this year. Especially, Cambodia sold 36,000 tons of rice to the world’s second biggest economy in March this year, accounting for 48% of the total rice exports of Cambodia that month.

Export prices of Vietnamese rice have been in decline. A ton of rice was exported at US$462 on average last year but the price dropped to US$420.77 in the first nine months of this year and US$343.75 in October.

Vong cited forecasts of the World Bank as saying that prices of almost all farm products will fall in the coming time, including rice with a projected drop by 7% towards 2020.

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