Expanding rice export market

There are a large number of governmental agencies and businesses involved in the rice industry in Vietnam— but how do they go about, in some coordinated fashion, expanding their rice exports in international markets? Where to start?

The Ministry of Industry and Trade (MoIT) brought together a group of panellists who gave their advice to industry leaders from around the nation at a recent workshop held in Ho Chi Minh City.

It was an effort to demystify the process, said an MoIT speaker.

The workshop was meant to energize and educate both government and business leaders on the tools available to reach out to the billions of new customers around the globe and grow the industry and create profitable jobs.

He said the industry has been largely stifled in its attempts over the past few years to grow exports beyond the Asian region.

In 2015, official statistics show shipments to the Asian region accounted for nearly 75% of the total rice exports for the year, with China the largest export market followed by the Philippines, Indonesia, and Malaysia in descending order of market size.

Commercial Counsellor in Beijing Bui Huy Hoang in turn said that since 2012, China has been the largest customer of the rice industry, purchasing some 54% of the nation’s last year rice exports.

For 2016 Hoang said he expects China’s purchases to increase modestly.

Vietnam’s Commercial Counsellor to the Republic of Korea (RoK), Chu Thang Trung, walked those in attendance through the maze of new policies related to rice exports to the RoK, which he concluded work in Vietnam’s favour for increased sales in 2016.

He said he was hopeful that businesses in the industry would take advantage of the new regulations and use them in conjunction with the Vietnam – RoK free trade agreement to boost sales in the market.

In addition, Commercial Counsellor Trung, pointed out how Vietnam embassies can essentially ‘be hired’ as an agent for a business, not only in the RoK but in embassies around the globe.

Nguyen Xuan Hong, deputy director of the Department of Industry and Trade in the Mekong Delta province of Long An, dilated at length in regards to the information needs of businesses pertaining to international markets.

Nguyen Trung Kien, chairman of Gentraco Joint Stock Company in Can Tho City called on the Vietnam Food Association (VFA) and the Vietnamese Commercial Counsellors in Latin America to provide information on quality control and food safety rules, among other things.

They should also furnish legal, accounting and consulting services for domestic businesses in instances of trade disputes and overcoming technical barriers, as well as potential competitors, he underscored.

Huynh Minh Hue, general secretary of the association, suggested Vietnam should hold back some of its higher quality rice and reserve it specifically for sale to trade partners other than those in the traditional key markets in Asia.

He also highlighted the need for the industry to ensure quality and prices, as well as sale promotions to enter markets for which Vietnam has signed FTAs.

Last but not least, Deputy Minister of Industry and Trade Tran Tuan Anh urged the Import-Export Agency to cooperate with the Association to help rice exports, with a special focus on developing the key markets.

In addition, he said their help could be beneficial in marketing in new countries and handling international trade disputes as well as educational campaigns to enhance rice exporters’ and farmers’ understanding of FTAs.

Vietnam – an important trade partner of Italy

Vietnam has become one of Italy’s most important ASEAN trade partners, said Italian Ambassador to Vietnam Cecilia Picciono on February 24 at a press conference in Hanoi.

At the event organized by EuroCham, the Ambassador also said Italian businesses foreign direct investment in Vietnam has expanded significantly over recent years to record high levels.

 “We hope that more Italian businesses will make full use of the Vietnam-EU free trade agreement to expand their business operations in Vietnam and use it as a springboard to make inroads into the ASEAN market,” said Ambassador Picciono.

Lastly, she revealed that an Italian business delegation recently made fact-finding tours of Vinh Phuc, Hue and Danang seeking investment and economic opportunities and their initial reports are very positive.

Official figures show that Vietnam’s total trade with Italy for 2015 was US$4 billion, with exports reaching a record high US$2.851 billion resulting in a favourable trade surplus of US$1.15 billion.

CapitaLand launches 7th project in Vietnam

Singapore’s CapitaLand and Vietnam’s Khang Dien House Trading and Investment Joint Stock Company have signed an exclusive cooperation agreement with UniHomes and Seareal in Ho Chi Minh City over sales distribution for the Kris Vue project.

According to Ms. Nguyen Thuy Duong Dalia, Manager of Sales and Marketing at CapitaLand Vietnam, this cooperation will continue the success seen in previous projects of CapitaLand Vietnam, such as The Vista, Vista Verde, PARCSpring and Krista, developing the capacity of both the investor and the distributors and bringing best living environment to buyers at Kris Vue.

Kris Vue is the seventh housing project of CapitaLand in Vietnam, designed in the style of hotel apartments for young families. Located in District 2, Ho Chi Minh City, the project inherits the convenience from the developing infrastructure system in the district, such as the Long Thanh - Dau Giay Highway and Thu Thien Urban Area.

Only 128 apartments were designed, in three types - Deluxe, Executive, and Premier.

Kris Vue also integrates the convenience from utilities such as markets, supermarkets, schools, hospitals, and cultural and commercial centers nearby.

The project also gives residents a comfortable life in a luxury Singapore hotel style, with an indoor saltwater pool, sports and yoga clubs, an outdoor fitness area, an entertainment and music room, a BBQ area, a games area for children, and luxury lobby.

A show apartment is expected to be open within the next month.

Vietnam is one of CapitaLand’s key markets in Asia, backed by a well-developed economy, rapid urbanization, and young population. CapitaLand is committed to long-term investment in real estate in the country.

The group now has a presence in five major cities: Ho Chi Minh City, Hanoi, Hai Phong, Da Nang and Binh Duong, investing in residential apartments and serviced apartments. To date it has provided than 7,850 high quality apartments in seven projects in Ho Chi Minh City and Hanoi.

First Novotel Suites opens in Hanoi

AccorHotels has opened a new hotel in Hanoi - its very first Novotel Suites in Asia.

Novotel Suites Hanoi is positioned on Duy Tan Street, a fast growing and developing economic area surrounded by business buildings and close to industrial zones.

Novotel Suites Hanoi delivers comfortable stays for both short and long-term guests and is especially designed for business customers. It also provides personalized features, including further supporting Novotel’s well-known family program.

“Here our guests are able to create their own special world, blending the warm and friendly feel of home,” said Mr. Thierry Le Ponner, General Manager of Novotel Suites Hanoi. “This hotel is opening a new horizon of living experience for clients who come to Hanoi for business purposes and also for their families in the long term.”

The hotel offers 151 comfortable units including the contemporary “Live N Dream” studios and one- to three-bedroom apartments. Each studio comes fully equipped with a kitchenette within at least 32 sq m of space. Each apartment offers ergonomic comfort to guests, including a walk-in closet, a separate living area, and more.

HCMC focuses on export to Myanmar

The Ho Chi Minh City Investment and Trade Promotion Center (ITPC) has recently organized a meeting to exchange information with businesses on Burmese market and introduced HCMC Expo 2016 as well as a market survey program in Yangon and Mandalay.

According to the announcement, the fourth HCMC Expo 2016 will take place in Yangon city from April 1-4 for while the sixth market survey program will be conducted from March 31 till April 5.

The ITPC director Pham Thiet Hoa said that this year expo would include 120 stalls. Those eligible to attend in the event are Vietnamese businesses from all economic sectors, capable of export and established in accordance with the law, and trade promotion organizations and associations.

The HCMC Expo 2016 will comprise an area exhibiting hi-tech agricultural products and construction materials.

Under the market survey program, businesses will have field trips to wholesale markets, markets, supermarkets, Hoang Anh Giai Lai commercial complex and the representative office of Saigon Trading Group in Myanmar to seek investment and cooperation opportunities.

Many Vietnamese brands have successfully penetrated into Burmese market such as sausage and canned chicken of Vietnam Meat Industries Limited Company (Vissan); rice products including dried vermicelli, noodle and prawn crackers of Sa Giang Company; Nam My vegetable oil; Trung Nguyen coffee; Cau Tre tea; milk and canned fruit juice of Vietnam Dairy Products Joint Stock Company; items of Saigon Cosmetics Corporation; Dien Quang light bulbs and Dai Dong Tien plastic products.

According to experts, there is much room in Burma market for Vietnamese enterprises with common goods being the largest consumption segment

Myanmar is a highly potential market for Vietnamese products such as food, consumer goods, beverage, construction materials, electric items and agricultural materials, they say.

Statistics by the General Department of Vietnam Customs show that last year Vietnam’s export value to Myanmar reached US$378.5 million.

The bilateral trade turnover between Vietnam and Myanmar has been lower than that of other Southeast Asian nations. However Myanmar is still determined to be a potential market for Vietnamese goods with the last December established ASEAN Economic Community.

Central region’s tourist potential rich, exploitation poor

Fourteen provinces in the north central and south central regions have rich and diversified tourist potentials but they have been exploited poorly and effectively with a lack of connectivity among provinces, said experts at a seminar hosted in the north central province of Nghe An yesterday.

The event was hosted by the Central Institute of Economic Management (CIEM), the Ministry of Culture, Sports and Tourism and the Bank for Investment and Development of Vietnam, attended by Minister of Public Security Tran Dai Quang, CIEM head professor Vuong Dinh Hue and over 400 managers, scientists, economic and tourist experts.

The north and south central regions stretch from Thanh Hoa to Binh Thuan provinces accounting for two thirds of the country’s coast area with well-known beaches namely Sam Son, Cua Lo, Thien Cam, Nhat Le, Cua Tung, Lang Co, My Khe, An Bang, Nha Trang and Mui Ne.

These regions are home to UNESCO recognized heritages Hue ancient capital, My Son holy land, Hoi An ancient town, Phong Nha-Ke Bang and Ho Dynasty citadel.

Besides there are many cultural and historical relic sites related to the establishment and development of the regions such as Kim Lien relic site--native land of late President Ho Chi Minh, Ngu Hanh Son (Marble) mountains, Tra Kieu--the first capital of the Hindu Champa Kingdom, Vinh Moc tunnels, Quang Tri ancient citadel, Road 9-Khe Sanh, Ho Chi Minh trail or highway now, Dong Loc crossroads, Truong Bon and the grave of late General Vo Nguyen Giap.

The area also includes rich and diversified intangible heritages such as Hue royal court music, Nghe Tinh Vi Dam fork singing recognized by UNESCO as an intangible cultural heritage of humanity, Lam Kinh festival, Cuong Temple festival, Hon Chen Temple festival, Hoang Sa Soldier Feast and Commemoration Festival, Hue Festival, Binh Dinh martial arts festival and Nha Trang sea festival.

The north central is linked up to the south central with the National Highway 1A and the North South Railway. They have nine airports including four international, locates in the gateway of the East West economic corridor connecting with provinces in the Central Highlands, trades with four nations in the Mekong sub-region namely Laos, Thailand, Cambodia and Myanmar.

According to the plan on tourist human resource development in the phase of 2011-2020, the north central region accounts for 8.7 percent and the south central 7.3 percent of the country’s tourist human resource, said associate professor Le Anh Tuan from the training department of the Cultural, Sports and Tourism Ministry.

Tourist development has been inappropriate with the rich potentials in each province and the entire regions. There has no breakthrough to make tourism the key economic sector. Development has been unsustainable and contained many dangers with a shortage of connectivity among localities.

Associate professor Pham Trung Luong from the Environment and Sustainable Development Institute said that tourist advertisement and promotion with lack of coordination among localities has wasted human resources and considerably limited the results of these activities in regional and provincial scales.

Every summer central coastal provinces are busy with festivals which have been organized separately without any coordination. For instance, in the national tourist year 2006 Hue Festival was hosted at the same time with Quang Nam tourist festival ‘One destination, two heritages’ but these two provinces did not inform each other. Sometimes Quang Nam opened festival ‘Hoi An-summer emotion’ while Thua Thien-Hue hosted ‘Lang Co-Sea Legend’.

Dr. Tran Dinh Thien, head of the Vietnam Economics Institute, said that provinces in the north central region have worked in a ‘local self help’ manner to develop tourism, making it separately, tattered and poor.

The main tourist form has been sea swimming which is seasonable, monotonous and weather dependent.

Dr. Thien prompted local authorities to delete their thought of ‘our province’s tourism’ and sit together to select a head of a regional management board to develop the tourist industry.

Bolstered connectivity needed between trade offices, southern region

It is important to tighten the connectivity between overseas trade offices and southern localities – a growth engine of Vietnam – so as to facilitate export and import activities, Deputy Minister of Industry and Trade Nguyen Cam Tu has said.

At a trade counsellors’ meeting in Ho Chi Minh City on February 22, representatives from many southern businesses said although the region is home to a large number of enterprises, most of them are of small or medium sizes, partly impeding their market access and competitiveness.

Additionally, they are also unfamiliar with regulations in international trade agreements, participants said.

Phan Minh Thong, Vice Chairman of the Vietnam Pepper Association, pointed out European markets’ food safety rules that pepper companies have to satisfy, asking overseas trade offices to provide domestic firms with detailed information about importing countries’ relevant standards.

Vice Chairman of the HCM City People’s Committee Le Van Khoa said Vietnam’s economy will be unable to integrate into the world if its businesses fail to make integration.

Trade offices should offer concrete assistance to help companies design development strategies in line with international trade commitments to which Vietnam is a party, he added.

Tran Thanh Hai, Deputy Director General of the trade ministry’s Import – Export Agency, said the workload tasked on overseas trade offices will increase amidst intensive regional and global economic integration and growing competition.

He told the offices to liaise more closely with domestic agencies and exert more efforts to expand markets, remove trade barriers and minimise anti-dumping lawsuits.

In 2015, 23 commodities groups posted export turnover of over 1 billion USD each. Up to 79 percent of them were processed and manufactured goods, 12.7 percent were agro-forestry-fishery products, and only 3 percent were minerals.

Vietnam Airlines runs 9,200 flights during Lunar New Year holiday

Vietnam Airlines operated 9,200 flights from January 26 to February 18 to meet the travel demand surge throughout the Lunar New Year holiday.

The flag carrier reported that about 1,000 flights were added during the period, which was from 25th day of the last lunar month to the 11th day of the first lunar month.

Up to 482 flights were conducted on the peak day – February 14 – the seventh day of the first lunar month.

In total, Vietnam Airlines served around 1.2 million passengers during the holiday. Most of them were on flights between Hanoi and Ho Chi Minh City, and between the two cities and Da Nang city.

Thanks to its efforts and assistance given to passengers, the rate of on-schedule flights reached 89 percent, the firm added.

Dong Nai tops nation in FDI attraction

The southern province of Dong Nai has topped the country in attracting foreign direct investment in the first two months of 2016, said the provincial Industrial Zones Authority (DIZA).

Accordingly, the province has lured 463 million USD worth of foreign direct investment, which accounted for 46.3 percent of its target and presented a rise of 3.4 percent compared to the same period last year.

For the reviewed period, 14 new projects were licensed with a total registered capital of 169 million USD, while 17 projects currently operating were allowed to increase capital - with a total increased capital of 298.8 million USD.

Taiwan (China) was the lead among countries and territories investing in the locality in the reviewed period, with four projects worth of a total registered capital of 125 million USD.

The new investment projects are diversified in many trading areas and meet with the locality’s investment attraction orientation, which include five projects in supporting industries for the mechanical and apparel industries.

According to the DIZA, one of the main reasons for the increasing FDI inflow is investors are taking the initiative to receive expected opportunities from free trade agreements, particularly the Trans-Pacific-Partnership (TPP) Agreement.

Many of the world’s largest companies from the Republic of Korea, Japan and China have invested in the province, including Fujitsu, Formosa, VPIC, Hyonsung, Changshin, Taekwang, and Amata.

Binh Phuoc, Ivory Coast cooperate in cashew sector

The southern province of Binh Phuoc and the Ivory Coast Cotton and Cashew Council (CCA) have established cooperation in the cashew sector.

At a working session between Vice Chairman of the provincial People’s Committee Tran Ngoc Trai and a CCA working group in Dong Xoai town on February 22, the two sides discussed issues regarding the cultivation and trading of raw cashew nuts.

Ouatara Bassifou, a representative from the CCA, said Ivory Coast produces about 700,000 tonnes of raw cashew nuts a year but the average annual productivity stands at only 400-700 kg per ha.

As Binh Phuoc’s cashew productivity remains high, Ivory Coast wishes to partner with the locality to improve cashew varieties and learn from the province’s farming techniques.

For his part, Trai said it is the weather and soil conditions, and varieties that decide cashew productivity.

Stressing the high capacity of raw cashew nut processing plants in Binh Phuoc, the official pledged to help local businesses in developing international relations.

He suggested the CCA hold a working session with the provincial Cashew Association to facilitate the direct export of Ivory Coast raw cashew nuts to Vietnam.

Currently, Binh Phuoc has 134,000 hectares of cashew which yield 190,000 tonnes of cashew nuts annually, with an average productivity of 1.4 tonnes per hectare.

Germany eyes traffic sector in Can Tho

An expert delegation from the German Agency for International Cooperation (GIZ) has visited the Mekong Delta city of Can Tho to seek investment opportunities in the local traffic infrastructure system.

During a working session with the local People’s Committee on February 22 Roland Hass from the delegation said the fact-finding mission aims to collect relevant information for an investment in the sustainable development of the urban traffic system in the core as well as the suburban areas of the city.

The delegation also discussed with local authorities the planning and development of the traffic network and its relevant legal framework, particularly in Ninh Kieu district.

A 3.8 million USD project on sustainable development of the Can Tho urban traffic system is expected to be carried out late this year. It comprises the components of technology transfer, technical assistance and human resources training.

Vice Chairman of the municipal People’s Committee Dao Anh Dung welcomed the investment from Germany in the city.

He attached the significant contribution of the German project to listing Can Tho as one of the key cities in the Southeast Asian region.

FTAs to encourage innovation

Existing and future free trade agreements are expected to promote innovations in the business community to enable firms to compete not only at home, but also on international markets.

According to Tran Du Lich, member of the National Assembly's Economic Committee, success in the market will be determined by restructuring and creativity, rather than scale.

Lich said that businesses need to operate in a climate in which innovations were encouraged and the State played a role in ensuring the market remains operating on the right track.

Vietnam, having great opportunities to increase its economic growth in the coming decades, will help Southeast Asia expand the industrialisation process and avoid risks of lower middle income traps, Lich said.

Competition is anticipated to become more fierce, not only at home but on international markets, and firms improving their competitiveness was called critical to being able to take advantage of opportunities.

However, Lich pointed out that the competitiveness of Vietnamese businesses remained low, especially in high-tech industries, capital-intensive sectors and high-end services.

There are some 550,000 existing firms in Vietnam, but only one-fourth of them were capable of exporting, he said, adding that there was also a lack of stability in the quality of their products.

Other problems included high input costs, infrastructure inadequacies, and loose links in the production chain.

It is now time for Vietnamese businesses to restructure and to mature, according to Lich.

He noted that bad debt, public debt and institutional reforms, in addition to strengthening local markets, must be thoroughly tackled.

Vietnam is integrating more rapidly than any other ASEAN country, except Singapore, according to Vo Tri Thanh, Deputy Director of the Centre Institute of Economic Management.

He also believes that the Vietnamese economy will enter a new thriving period, marked by participation in the Trans-Pacific Partnership.

He urged Vietnamese to study new-generation FTAs carefully to understand rules of origin and meet technical norms to allow for participation in these markets.

Thanh further predicted that there would be a boom in the consumption and service industries to benefit end-users.

Thanh also said, at a conference held by the Vietnam Association of Consumer Goods on February 19, that creation of a 400-page economic strategy report, entitled 2035, would be officially announced this week.

Central rate decreases slightly

The State Bank of Vietnam (SBV) on February 22 announced the central rate for the Vietnam dong against the US dollar at 21,894 VND per USD, a decrease of 6 VND compared to the late last week.

With the current +/- 3 percent VND/USD trading band, the ceiling exchange rate is 22,551 VND per USD and the floor rate is 21,237 VND per USD.

Meanwhile, the listing rate at commercial banks showed little change.

The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) and the Bank for Investment and Development of Vietnam (BIDV) posted the buying and selling rates at 22,330- 22,400 VND per US dollar, the same as the last working day of last week.

The Vietnam Technological and Commercial Joint- stock Bank (Techcombank) posted the buying and selling rates at 22,298/22,410 VND per USD, up only 2 VND in the selling rate.

The rates applied by the Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) were up by 5 VND, at 22,325 and VND-22,405 VND per USD (buying-selling).

Meanwhile, the Vietnam Import-Export Commercial Joint Stock Bank (Eximbank) raised the buying rate by 10 VND and the selling rate by 20 VND, posting the exchange rate at 22,320 VND/22,410 VND (buying/selling) per USD.

Fair to introduce Vietnamese goods in Myanmar

The 2016 Vietnam-Myanmar Trade Service and Tourism Fair - Ho Chi Minh City Expo 2016, is scheduled to take place in Yangon city, Myanmar from April 1-4.

Hosted by the Ho Chi Minh City Investment and Trade Promotion Centre (ITPC), the event is expected to offer Vietnamese enterprises a good chance to explore investment and trade opportunities in the growing market.

According to ITPC Director Pham Thiet Hoa, the fair will include 120 booths, providing information on trade, services and tourism on offer in HCM City, and will have separate exhibition areas for hi-tech agriculture and building materials.

Municipal officials and businesses will conduct a market survey in Yangon and Mandalay cities from March 31 to April 5.

In his speech at a recent workshop in HCM City, Hoa said although the low-end consumption segment makes up the majority of the Myanmar market, the middle and high-end segments are being expanded thanks to the country’s market-opening efforts.

Myanmar consumers’ taste is also affected by customs and religions, and they prioritise shopping for goods for daily use and prefer products with discounts or promotions, he noted.

Economic experts say Myanmar is a good potential market for Vietnamese commodities, especially for foods, consumer goods, beverages, construction material, machinery and products for agricultural production.

Many Vietnamese trade names such as Vissan food, Sa Giang rice products, Trung Nguyen coffee, Vinamilk milk and juice, Dien Quang light bulbs and Dai Dong Tien plastic goods, have successfully made inroads into the market.

Statistics from the General Department of Customs show Vietnam exported over 378.5 million USD worth of goods to Myanmar in 2015. Bilateral trade is still modest compared to their trade with other ASEAN countries.

Consumer Price Index up in Hanoi, HCM City

The Consumer Price Index (CPI) in the two major cities showed a slight increase in February due to the high demand for goods during Tet holidays, according to statistic offices.

Hanoi Statistics Office reported on February 22 that the CPI for Hanoi in February rose by 0.47 percent against the previous month and 1.73 percent year-on-year.

The CPI this month gained the highest increase since September 2014, the office said.

This month, the city saw the highest growth in prices at 2.45 percent from the goods group of restaurant and catering services. Prices of rice and vegetables rose steeply in the month due to the Tet festival and the high demand while the market saw a low supply of vegetable due to the cold weather.

They were followed by the group of cultural, entertainment and tourism services with rise in prices at 1.12 percent because of the high price of fresh flowers and big demand for tours during the long Tet holidays taking tour prices up by 8 percent to 10 percent, the office said.

It also said two groups which showed a reduction in prices compared with the previous month were the group of housing, electricity, tap water, and fuel, along with building material by 0.62 percent, while the group of transportation services was down by 3.59 percent due to lower fuel and gas prices.

In February, the price of gold surged by 2.08 percent while the price of United States dollar dropped 0.65 percent as compared with January.

This month, the CPI in HCM City showed a slight increase of 0.05 percent over the previous month and 0.72 percent year-on-year because seven goods items showed an increase in prices, the HCM City Statistic Office said.

These included the group of restaurant and catering services up 1.25 percent, food up 1.55 percent and the group of beverages and tobacco which was up by 0.79 percent.

The office said the group of housing, electricity, tap water, and fuel along with building material dropped by 0.05 percent against the previous month as there was lower demand for building materials and a drop in fuel prices.

The prices of the transport group also dropped steeply at 4.52 percent due to the huge plunge in petrol and oil prices, it said.

Australian food exporters look to Vietnam

Australian trade officials are calling on food exporters to step up promotions in Vietnam to benefit from the growing market, reported Australian Associated Press (APP) on February 22.

The news agency quoted Janelle Casey, Australia 's acting senior trade commissioner for Vietnam , as saying that a burgeoning middle class in Vietnam with a higher disposable income is increasingly looking for quality food and healthy, safe options.

She said retailers and food outlets in Vietnam need high-quality international products to meet the demand.

Vietnamese consumers are increasingly aware of health and wellness issues and are paying greater attention to the quality and safety of food - key factors that are driving change in consumption patterns, Casey added.

She said local restaurants and importers are keen to access more Australian-grown food and imported beverages, and that Australian products have a high-quality reputation in Vietnam .

Australia 's exports to Vietnam last year were led by metal imports, wheat and coal.

Tech products imported from Vietnam to Australia are also on the rise.

Trade data showed that Australia has become a key target market for the country's fast growing mobile phone exports, with sales growth of more than 30 percent in 2015.

Trade turnover between the two countries reached 4.93 billion USD in 2015, according to statistics from Vietnam ’s General Department of Customs.

Vietnam recorded a trade surplus of approximately 900 million USD with Australia.

Gold prices fall in domestic market

Gold prices dropped in the domestic market on February 22.

At 4pm, DOJI Hanoi listed the buying and selling prices of gold at 33.25 million VND (1,484 USD) and 33.35 million VND (1,488 USD) per tael, respectively, a decrease of 270,000 VND (12.05 USD) compared to the previous day's closing rate.

At Saigon Jewellery Company Limited, the buying and selling prices of one tael of gold were 33.12 million VND (1,478 USD) and 33.44 million VND (1,492 USD), 180,000 VND (8.03 USD) and 230,000 VND (10.26 USD) lower than February 22's rate, respectively.

According to DOJI, the gold market last weekend was quieter than the previous days.

There was a fair balance in the number of customers buying and selling gold.

Reuters said gold extended losses below its 12-month high on February 22 as the dollar and equities strengthened, but the metal remained underpinned above 1,200 USD an ounce as caution in financial markets prompted investors to channel money into bullion.

On the global trading website kitco.com, gold prices declined slightly from February 22's rate by 17 USD, or 1.39 percent, to touch 1,217.2 USD per ounce, or 1.205 per tael.

Japanese enterprises wish to expand their investment cooperation with Vietnam as the country continues to enjoy strong growth, especially after the recent signing of a number of trade deals.

The statement was made by Kishimoto Yoshio, Director General of Japan’s Kyushu region’s Bureau of Economy, Trade and Industry, who led a delegation of 30 Japanese businesses to visit Hiep Phuoc Industrial Park in Ho Chi Minh City on February 22.

At the reception for the delegation, head of the HCM City Export Processing and Industrial Zones Authority (Hepza) Vu Van Hoa said 17 industrial parks in the city have so far attracted about 1,300 projects with total investment capital of 9 billion USD.

Of the figure, 559 projects worth 5.4 billion USD are sourced from Foreign Direct Investment (FDI).

Japan is the largest investor in the city’s industrial parks with 119 projects capitalised at 1.3 billion USD.

Workshop boosts rice export

Expanding into international markets to boost rice exports was the focus of a workshop held by the Ministry of Industry and Trade on February 22 in HCM City.

According to the ministry, the Asian region remained Vietnam’s key rice importer in 2015, totalling 4.8 million tonnes of rice and accounting for nearly 74.5 percent of the country’s rice exports.

China was the region’s biggest importer, accounting for 33 percent. It was followed by the Philippines, with more than 18 percent, Indonesia, 9.7 percent; and Malaysia, over 8 percent.

Commercial Counsellor in Beijing Bui Huy Hoang said since 2012, Vietnam has been the biggest rice exporter to China, accounting for 54 percent of its total rice imports in 2015.

China’s rice imports are expected to increase in 2016 thanks to a big difference between domestic and imported rice prices, Hoang said.

Commercial Counsellor in the Republic of Korea Chu Thang Trung highlighted the country’s new policies on rice imports, which help Vietnamese rice exporters.

He expressed his hope that Vietnamese rice exporters will take advantage of the new regulations and the Vietnam – RoK free trade agreement to penetrate and dominate the market.

Deputy director of the Department of Industry and Trade in the Mekong Delta province of Long An, Nguyen Xuan Hong, called for incentives for the local rice export sector.

Domestic rice exporters need information about international markets, such as quota-related information so they can avoid potential damage and losses in signing contracts with international partners, Hong said.

Chairman of the Gentraco Joint Stock Company in Can Tho City Nguyen Trung Kien called on the Vietnam Food Association (VFA) and the Vietnamese Commercial Counsellors in Latin America to provide information on quality control and food safety rules, among others.

They should also provide consultation services for domestic enterprises in cases of trade disputes and technical barriers, as well as potential competitors.

Huynh Minh Hue, general secretary of the association, said Vietnam needs to ship its high quality rice to trade partners other than the traditional key markets of China and Asia.

He also stressed the need for the sector to ensure quality and prices, as well as promotions to enter markets that have signed free trade agreements with Vietnam.

Deputy Minister of Industry and Trade Tran Tuan Anh urged the Import-Export Agency to cooperate with the Association to help rice exports, with focus on developing the key markets, marketing in new ones and handling international trade disputes.

Publicity campaigns will be promoted to enhance rice exporters’ and farmers’ understanding of FTAs, the deputy minister said.

HCM City enterprises need 26,000 recruits in March

Businesses in Ho Chi Minh City, the southern economic hub of Vietnam, need to recruit some 26,000 workers in March, according to the municipal Centre for Forecasting Manpower Needs and Labour Market Information (FALMI).

Of the total, people holding university and college degrees account for 30 percent; those trained in vocational schools, 35 percent; and manual workers, 35 percent.

Most vacancies are available across the fields of information technology (IT), electromechanics, architecture-construction engineering, industrial electricity, garments-leather shoes, tourism-restaurant-hotel, economics-finance, import-export and medical and pharmaceutical sectors, said FALMI Deputy Director Tran Anh Tuan.

Job seekers in the month are expected to surge 20 percent from February, he said, adding that university and college graduates will have chances to get stable jobs thanks to increasing demands from enterprises.

The centre’s survey revealed that labour shortage in the city remains low at 3-4 percent after the Lunar New Year (Tet) festival. The city’s post-Tet recruitment demand is to serve the business operations in 2016.

Vietnamese firms win high-quality award

The Vietnamese High-Quality Goods award will be conferred on 500 firms this year, 41 of them first-time winners. Forty-two have received annual recognition for 20 consecutive years.

At a ceremony in HCM City on February 23, the awardees will also include 356 firms who have won for three consecutive years.

The winners were selected from a list of 678 companies based on surveys of nearly 20,000 households, individuals and retailers at trade promotion programmes in 12 key provinces and cities around the country, held by the Business Association of High Quality Vietnamese Products.

They had to meet criteria related to product quality and origin, and comply with regulations on consumers and workers' rights, environmental protection and corporate social responsibility.

Most of the winners make sauces, spices, confectionery, non-alcoholic beverages, construction materials, electrical and household machines and dried foodstuff and instant food, said Nguyen Thanh Long, the association's deputy chairman.

Hoang Trong, an association expert, said Vietnamese high-quality products had increasingly gained trust of supermarket chains in the domestic market as well as regional and world markets.

Vu Kim Hanh, the association's chairwoman, said this year would continue to be a challenging year for Vietnamese firms in international integration and innovation.

"Enterprises must know their own advantages and focus on this," she said.

She also called on domestic firms to quickly develop a strong foothold in the lucrative rural market.

Luong Van Vinh, General Director of My Hao Chemical Cosmetics Joint Stock Company, said integration would mean both opportunity and challenges for Vietnamese firms.

Thailand has opened trade fairs to promote their products in big cities like Hanoi and HCM City as well as the Mekong Delta.

"To compete with foreign products, besides providing quality products at good prices, developing a strong distribution system is very important," he said.

Hanh said the association would strengthen activities to help businesses promote their products both in domestic and neighbouring markets and improve their competitiveness in the international market.

The awards ceremony will mark the 20th anniversary of the association.

Ben Tre Province steadies faltering coconut industry

Ben Tre Province, the country's main coconut growing area, has decided to offer assistance to coconut growers whose livelihoods have been affected by the difficulty they face in selling their products.

It will provide them with a certain volume of fertilisers per hectare of coconut trees to help them improve productivity and sustain their orchards.

Besides, farmers who plant cacao or breed shrimp in their coconut orchards will be fully subsidised since those are two items the province wants people to farm.

The province encourages and facilitates enterprises to buy coconuts directly from farmers to cut out intermediary costs.

It also encourages them to innovate technologies, improve quality and diversify products, and provides them with financial assistance to promote their coconut-based products abroad.

Ben Tre Import Export Joint Stock Company (Betrimex) ranks among the pioneers in the province in establishing harmonious relations with coconut growers, enabling the latter to continue earning a living from coconut.

The company buys coconuts at a fair price, helping farmers sustain production and feel secure about their livelihood.

Betrimex is also committed to investing in technological innovation to meet the demands of high-end markets, and creating a closed production loop to minimise costs.

Last year, besides making traditional products like desiccated coconut, coconut-shell charcoal, and coconut oil, fibre, net, and others, Betrimex invested US$20 million in setting up the biggest coconut water and coconut milk plant in Viet Nam to supply to export to markets in Asia, Europe, the Americas, and Africa.

They were aimed at creating value addition for coconuts and increasing the value of Viet Nams agricultural produce.

Speaking about the companys Strategic Development Plan for up to 2020, Dang Huynh Uc My, chairwoman of Betrimex, said: "We are focusing on developing products with high added value such as coconut water, coconut milk, and activated carbon.

"In addition to having collection centres in key coconut areas, we are also restructuring the operation model and arranging centralised production."

Coconut plays an important role in Ben Tre's economy and social security since coconut farmers make up nearly 40 per cent of its population.

Around 2,000 processing and trading firms operate in the industry, creating thousands of jobs.

In recent times selling coconuts and coconut-based has faced difficulties following an increase in the area under the nuts as well as processing capacity.

Besides, the prices of dry coconut have fallen sharply because of a decline in global demand and prices.

Small borrowers fear interest rate hike

Individuals as well as small and medium-sized enterprise are apprehensive loan interest rates could rise since banks have kept hiking deposit interest rate since the end of last year.

Pham Van Thanh of HCM City's District 12 has borrowed more than VND300 million (US$15,000) from a bank to buy a house, and has to pay a floating interest rate from the second year onwards of the 13-month deposit rate plus 4 per cent.

From this month the rate has gone up to 11.5 per cent.

Many small and medium-sized enterprises have warned that they will face challenges if banks increase lending rates.

A director of a HCM City-based company was quoted as saying by Nguoi Lao Dong (The Labourer) newspaper that his company has never been penalized for late payment of loan but since it did not report a profit, the bank has downgraded it and imposed a higher interest rate of 11-12 per cent.

The situation would worsen if the rate continued to rise, he said.

The newspaper quoted Nguyen Quoc Anh, chairman of the HCM City Plastic and Rubber Association, as saying that many companies have been apprehensive about making business plans for this year because they fear interest rates could rise.

He hoped the rates would remain steady so that companies feel secure about doing business.

In December banks hiked deposit interest rates, and there has been another round of hikes this month.

For instance, Orient Commercial Joint Stock Bank is offering 7.6-8 per cent on deposits of 12-36 months.

Sacombank is offering 4.8 per cent for one month, 5.3 per cent for three months, 5.6 per cent for six months and 6.4 per cent for 12 months.

The rates are 0.2-0.3 percentage points up since before Tet, according to the bank.

It is not very clear where things are headed: while bank executives said higher rates would enable them to retain customers who move to banks offering higher interest and so a race to hike rates was inevitable, banking consultant Can Van Luc said banks were merely preparing for the imminent credit growth and there was no fear of a race.

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