Toyota recalls more than 700 Innova cars

Toyota Viet Nam is recalling 764 Innova cars to replace two back doors.

The affected cars, produced from December 16, 2015, to January 13, 2016, included 79 Innova J cars, 683 Innova E and G cars and two Innova V cars.

According to Toyota Motor Corporation (TMC), these affected cars have insufficient welding or welding spots in the door panels. In the event of an accident, the issue could cause higher-than-expected damage to the back doors upon direct impact, potentially reducing back seat passengers' protection.

The higher pressure of spot welding was caused by abnormalities after relocating the welding process to an Indonesian manufacturer. Door impact beams comprise a steel pipe installed inside a vehicle door to protect passengers from being injured during an accident. It works by increasing the strength and reduces the deformation of the door.

The recall campaign will be implemented on Wednesday at authorised Toyota dealers nationwide, free of charge.

Owners of affected cars will receive an invitation or phone call to receive repairs.

Registration of promo programs possible online

Businesses in HCMC now can register their promotional programs at the website http://www.khuyenmaihcmc.vn, instead of having to submit their applications to the HCMC Department of Industry and Trade’s office.

The website was launched on April 21 in an effort of the city to streamline administrative procedures and help enterprises save time and money.

Enterprises can access the website to complete required procedures for their promotional programs and will get approval if they meet regulations governing the field. Applicants are advised to check their emails regularly to get updates about their applications and submit additional documents if required.

Pham Thanh Kien, director of the department, said there were more than 50,000 applications for promotional programs last year, 80-90% of the total dossiers sent to the agency. That was why the department launched the online registration service for promotional programs.

The department will deploy more services on the website to create favorable conditions for enterprises as part of a road map to digitize public services under the management of the department.

Ministry launches SME development fund

A fund for small and medium-sized enterprises (SMEs) development with total charter capital of 2 trillion VND (89.75 million USD) was launched by the Ministry of Planning and Investment (MPI) at a ceremony in Hanoi on April 22.

Functioning as a state-owned financial organisation under the MPI, the fund is responsible for managing and using financial resources while outlining policies as well as implementing international cooperation activities to support SME development.

SMEs are the backbone and driving force of the economy, however, they have faced tremendous challenges such as an opaque business environment, a shortage of high-quality labourers and a lack of capital for start-ups and business expansion, Deputy Minister of Planning and Investment Dang Huy Dong said at the ceremony.

He added that the establishment of the fund reflects the determination of the Government and the ministry to develop the private economic sector, giving momentum to the nation’s economy development.

Meanwhile, Hoang Thi Hong, director of the fund, said that the fund is to enhance the competitiveness of enterprises through supporting them in developing competitive and environmentally friendly products, improving technical equipment and fine-tuning business management competence.

SMEs, which are established and operate in Vietnam in line with the country’s regulations, are eligible to receive support from the fund.

The fund gives commercial banks a mandate to loan to SMEs at a preferential interest rate of 5 percent for short-term borrowing and 7 percent for medium and long-term credits.

At the ceremony, the fund also inked a cooperation agreement with mandated commercial banks in 2016.

Adidas drops plastic bags

The Adidas Group has announced it will eliminate all plastic bags in its global retail stores, including those in Vietnam.

The decision was in response to Earth Day on April 22 and comes into effect immediately, except in Russia and Kazakhstan, where it will come into effect in June.

Adidas will remove about 70 million plastic bags from its 14,000 retail stores around the world.

Mr. Roland Auschel, Head of Global Sales and a Member of the Executive Board, said that eliminating plastic bags is part of Adidas’s efforts to encourage the community to make more sustainable choices.

He added that Adidas’s sales staff are trained to asked customers whether they really need bags because the less that are used the more the environment is protected.

The cut in bag use also helps the group become a sustainable enterprise.

Early this year Adidas was named among “The 100 Most Sustainable Corporations in the World”.

Known as a leading enterprise in sports products, Adidas is headquartered in Herzogenaurach, Germany. In 2015 it employed over 55,000 people and earned revenue of about $19 billion.

Keppel Land buys 500 bln VND of bonds

Singaporean property developer Keppel Land has concluded a purchase of 500 billion VND (22.4 million USD) in convertible bonds from Nam Long Investment Company, which builds affordable houses and departments in Vietnam.

The deal was done through its wholly owned subsidiary Ibeworth Pte Ltd .

The interest rate of the bonds is fixed at 7 percent annually. The price is set at 23,500 VND (1.05 USD) per share.

Foreign investors, including Mekong Capital, IFC and Goldman Sachs, have already accounted for the 49 percent cap allowed for foreign investors.

Nam Long (listed as NLG at HOSE) is waiting for the issuance of a government circular to guide the relatively new regulation that allows foreign companies to own up to 100 percent. It also needs the approval of its shareholders to convert the bonds.

Last July, Keppel Land, also via the subsidiary, bought 7.1 million new ordinary shares issued by Nam Long, representing nearly 5 percent of the company. Once the bonds are converted, its stake will increase to about 5 percent.

Quảng Nam starts two key projects for development

Prime Minister Nguyễn Xuân Phúc yesterday affirmed the Government’s commitment to create smooth conditions for investors and ensure that investors benefit when investing in Việt Nam.

He made the statement while attending the inauguration ceremonies yesterday of two key projects in Quảng Nam Province – the Nam Hội An Integrated Resort Project, invested by VinaCapital and Gold Yield Enterprises Corporations, and the expansion of the Trường Hải-Chu Lai Mechanical Automobile Industrial Zone.

Prime Minister Phúc praised the efforts made by the province and investors in starting the construction of these two key projects.

“It’s big scale and strategic investment projects in the province and the Central Highlands region that will help change economic development in tourism, and the service and industrial sectors of the province,” Phúc said.

He said foreign direct investment is seen as a key factor for Việt Nam’s development.

The Nam Hội An Integrated Resort Project, situated in the coastal area of Duy Xuyên and Thăng Bình districts, will be built on 985ha with a total investment of US$4 billion in seven phases between 2016 and 2035.

The project will become Việt Nam’s second largest casino resort after the Grand Hồ Tràm Strip resort and casino in the southern Bà Rịa-Vũng Tàu Province.

The first stage of the project will be constructed on 163ha with initial capital of $500 million, including an 18-hole golf course and a 1,000-room resort from 2016 to 2019.

According to a project investor, the Hội An South Development company, the resort project would start operations in 2019, creating 2,000 jobs for local people and an anticipated revenue of VNĐ100 billion ($4.4 million) in the first phase of investment.

The integrated resort project will be developed as the first luxury entertainment and living centre of world class standard in the ideal world heritage sites of Hội An, Mỹ Sơn Sanctuary and Chàm Island.

The project was among 12 that received investment certificates in Quảng Nam in March, and 17 projects this year.

Also yesterday, the Trường Hải Automobile Joint-Stock Company (Thaco) commenced construction on the expansion of the Trường Hải-Chu Lai Mechanical Automobile Industrial Zone on 210ha with an investment of VNĐ794 billion ($35.3 million) in Núi Thành District.

The expansion project would include a new Mazda plant, two new truck and bus plants and other supportive industries for several car models.

The project would produce 215,000 vehicles including touring cars, trucks, buses and vans after starting operation in 2018.

“They are two key projects in boosting the transition of economic structure in the province. These projects will bring huge revenues for the province’s budget, create jobs for local residents as well as building sustainable development in the southeast region of province,” said chairman of the provincial People’s Committee, Đinh Văn Thu.

He said the province will create the best conditions for investors to boost the construction schedule.

PM Phúc asked the province and investors to speed up the construction schedule of projects with sustainable development targets to supply multiple benefits to investors, local people and the province.

The central Quảng Nam Province sees the Trường Hải-Chu Lai Mechanical Automobile Industrial Zone as a crucial factor in the automobile development strategy of the region and ASEAN.

The province has started the construction of roads connecting the zone with the Tam Hiệp Sea Port and the Đà Nẵng-Quảng Ngãi Expressway.

Quảng Nam plans to open sea route links from the zone to ports in Korea and Japan, creating a competitive advantage for investors.

The Prime Minister stressed that the investment in the Trường Hải company (Thaco) in Quảng Nam over the past 13 years has made a great contribution to the development of Việt Nam’s automobile industry.

He said he had witnessed the fast growth of Thaco in building a top brand of made-in-Việt Nam automobiles.

According to Thaco’s chairman, Trần Bá Dương, the company has invested VNĐ28 trillion ($1.24 billion) in the Chu Lai-Trường Hải Industrial Complex – which has a logistics centre, car production factories, a vocational training college, a sea port and storage system, as well as a shipping service.

Dương said the complex earned total revenues of $2 billion, contributing VNĐ13.8 trillion to the State budget and creating 8,000 jobs for local people.

“We sold over 80,000 cars in 2015, giving us a 38.6 per cent of the Việt Nam Automobile Manufacturing Association (VAMA)’s market share. We plan to produce over 112,000 cars in 2016, with an expected revenue of US$3 billion,” Dương said.

Earlier this year, Thaco began operation of a new production line of trailers and special purpose vehicles in the Truong Hai-Chu Lai Mechanical Automobile Industrial Zone.

The Quảng Nam-based car producer currently manufactures and distributes models of Kia for South Korea, Mazda for Japan and France’s Peugeot.

April consumer price index expands 0.33%

The consumer price index in April rose 0.33 per cent against last month, following price hikes of many goods, according to the General Statistics Office (GSO).

Compared with the same period last year, the index increased 1.89 per cent, the office reported.

Deputy director of GSO's Consumer Price Index Department Do Thi Ngoc said that the rise in April was lower than the rate of 0.57 and 0.42 per cent in February and March.

"The CPI exhibits normal trends. In the first months of the year, when the country's largest festival of Tet (Lunar New Year) falls in with high rising demands, the rising rate of the CPI is often higher," Ngoc said.

However, she noted, if compared with April of the past four years, the 0.33 per cent rise of this month was relatively high. In April of the past four years, the CPI index inched up only 0.02-0.14 per cent.

Ngoc attributed the rise to price hikes in eight out of 10 items used to calculate the CPI.

According to GSO, during this month, transport charges saw a month-on-month rise of 1.73 per cent due to two petrol price increases. The hike made up the 0.16 percentage points to the country's CPI index rise.

The price of food in April also increased 1.11 per cent, in the wake of rising rice demands to meet export contracts.

GSO reported the price of housing and construction materials rose 0.71 per cent due to steel price hikes, while gas prices increased 2.61 per cent in the wake of global world price hikes.

Also during the month, the CPI in the country's largest cities of HCM and Ha Noi increased 0.47 per cent and 0.32 per cent, respectively, the GSO reported.

Ngoc forecast that the CPI in the next few months would be stable as food prices would remain steady after rising in April due to rising global rice supplies, while rice importing countries, such as Indonesia and the Philippines, are ceasing their rice imports.

Construction begins on US$4 billion five-star resort project

Work started on a US$4 billion integrated resort project in Hoi An, Quang Nam province, making it the biggest project so far in the locality.

PM Nguyen Xuan Phuc (3rd, L) attends the commencement ceremony of the Hoi An South integrated resort project in Hoi An, Quang Nam, April 24, 2016. Photo: VGP

Jointly invested by VinaCapital and Gold Yield Enterprises, the resort comprises of five-star hotels, villas, and a golf course.

The first phase of the project will be implemented on a area of 160 hectares with total investment capital of US$550 million and is expected to complete in the first quarter of 2019.

The resort, located near Da Nang international airport, the world cultural heritages, Hoi An ancient town and My Son Sanctuary, and the world biosphere reserve of Cu Lao Cham, is expected to create jobs for 2,000 local residents.

Speaking at the commencement ceremony on Sunday, PM Nguyen Xuan Phuc affirmed the significance of the project, which would contribute to turning tourism into a spearhead economic sector in Viet Nam.

He took the occasion to assure the Government commits to creating favorable conditions for both domestic and foreign investors.

Lotte Mart looks to 60 stores by 2020

South Korean retailer Lotte Mart will step up merger and acquisition (M&A) deals and open more shopping malls to realize its target of having 60 stores in Vietnam by 2020, said Hong Won Sik, general director of Lotte Mart Vietnam.

To gradually realize the target, Lotte Mart will open Lotte Go Vap in HCMC on April 28. It will be Lotte Mart’s 12th store in Vietnam since the company made a foray into the domestic retail market eight years ago.

However, Hong said this is a challenging target for Lotte Mart. It took years to open a new shopping mall in the past because the firm as a newcomer faced a slew of difficulties.

Hong said things have changed, so Lotte Mart can now inaugurate 4-5 new centers a year.  Lotte Group will ink M&A deals in the coming time, Hong said. It was reportedly bidding for Casino’s Big C retail store chain in Vietnam. Apart from Big C, Lotte Group may eye other deals.

Hong said the firm is keen on M&A deals owing to its financial capability. Until now, Lotte Group has invested nearly US$650 million in 12 centers in Vietnam, and Lotte Go Vap alone cost US$45 million.

The company will apply a new model to run Lotte Go Vap to ensure more services and conveniences for shoppers. Go Vap District is home to a number of supermarkets like Co.opmart, Big C and E-mart so competition among businesses is tough there.

Located on Phan Van Tri Street, the three-storey Lotte Go Vap has a food court, a supermarket and a cinema complex.  

Hong said Lotte Group will implement a property project in Thu Thiem New Urban Area this year or next after required procedures are completed in May.

According to Lotte Mart Vietnam, its supermarkets generated VND500 billion in sales revenue last year, a 30% increase from a year earlier, and the number of visitors edged 20% higher year-on-year.

Around one million people come to Lotte Mart supermarkets per month on average but the monthly number in the first quarter of 2016 reached 1.2 million.

Local e-marketplace ranks high in sales

The first e-marketplace in the country since 2005, ChoDienTu.vn , is now the second largest e-commerce website in terms of sales revenue.

This fact has shown that local e-commerce players have a unique strategy and in-depth local understanding to counter foreign giants, despite having fewer funds, according to the 2015 e-Commerce report published this week by the Vietnam e-Commerce and Information Technology Agency (www.vecita.gov.vn).

This news has marked the comeback of the earliest e-marketplace in Vietnam since 2005, which has been silent in recent years.

ChoDienTu.vn is owned by PeaceTech joint stock company, a subsidiary of the PeaceSoft-group joint venture with eBay and majority-controlled by Vietnamese veteran technopreneurs.

PM kicks off two major projects in Quang Nam

Prime Minister Nguyen Xuan Phuc attended ceremonies to commence work on two major projects in the central coastal province of Quang Nam on April 24.

The first project is the South Hoi An Resort tourism complex with the total capital of 4 billion USD, the biggest ever in Quang Nam. It is invested by VinaCapital and Gold Yield Enterprises Corporations.

The project covers an area of 985.6 hectares spanning three communes: Duy Hai and Duy Nghia communes in Duy Xuyen district and Binh Duong commune in Thang Binh district.

Once completed in 2035, it will become a five-star resort and entertainment complex featuring a culture, trade and service centre and a tourism processional training school.

Its first phase, worth 500 million USD, will build an 18-hole golf course and a resort area of 1,000 villa and hotel rooms. About 2,000 labourers are expected to be employed after the phase is completed in 2019.

Meanwhile, the 210-ha expanded Chu Lai-Truong Hai auto mechanical industrial park will have a car manufacturing factory with capacity of 100,000 units per year and a truck manufacturing factory producing 100,000 units per year, alongside bus and minibus manufacturing factories, each with capacity of 10,000 units per year.

The investor, Truong Hai Auto Group, will also establish sea transport routes directly linking the park to the Republic of Korea, Japan and China to cut logistics costs. The Tam Hiep residential area will be built to provide accommodations for those who work in the Chu Lai-Truong Hai IP in particular and the Chu Lai Open Economic Zone in general.

Speaking at the ceremonies, PM Nguyen xuan Phuc applauded the great significance of the two projects, saying that they would contribute to develop the economy of Quang Nam and the central region as well.

He affirmed the Government’s commitment to ensuring a stable and transparent investment climate for investors and creating favourable conditions for them to implement their projects.

Viet Nam Macadamia Association makes debut

The Viet Nam Macadamia Association was officially founded on April 24 in the Central Highlands province of Lam Dong.

The Association convened its first Congress and elected its Executive Committee.

Co-founded by Lien Viet Post Bank and the Him Lam Joint Stock Company, the VMA was established under Decision No. 124/QD-BNV, dated February 5, 2016 issued by the Ministry of Home Affairs (MHA).

The Association is an occupational - social organization operating under the Association Charter approved by the MHA, complying with legal regulations and being managed by the Ministry of Agriculture and Rural Development and other ministries related to the field.

It plans to implement numerous activities in 2016 in order to quickly reach the target of making the central highlands a macadamia center in Southeast Asia.

Lien Viet Post Bank and Him Lam have played an important role in realizing the potential of and seeking new opportunities for developing a macadamia industry in Viet Nam.

Under the ratified planning of the Ministry of Agriculture and Rural Development, by 2020, total macadamia cultivation in the North West and the Central Highlands Region will be around 9,940 hectares. There will have 12 processing units with an average output of 50-200 tons.

National CPI sees slight rise in April

The Consumer Price Index (CPI) in April increased by 0.33 percent against the previous month, driving the average figure in the first four months of this year up 1.41 percent.

The General Statistics Office (GSO) announced on April 24 that this month’s index expanded by 1.89 percent over the same period last year.

Eight out of the 11 groups of commodities and services experienced price hikes. The highest was recorded in the transport sector with 1.73 percent, followed by the group of housing and construction materials, 0.71 percent; medicines and medical services, 0.45 percent; education services, 0.37 percent; and beverages and tobacco, 0.17 percent.

Prices of restaurant and catering services remained stable in the month while the category of culture, entertainment and tourism experienced a slice of 0.01 percent.

Do Thi Ngoc, Deputy Director of the GSO’s Price Statistics Department, attributed the CPI expansion to impacts of the drought in the central and Central Highlands regions and saltwater intrusion in the Mekong Delta that pushed rice price up.

Besides, the increasing demand for construction kept the price of building materials high, she said, adding that water price increased by 0.3 percent due to the higher demand in the early summer.

While the domestic gold price fluctuated in accordance with the world gold and petroleum prices, the price of US dollar remained stable at 22,300-22,400 VND/USD during the month.

The office said core inflation (the CPI without food and fresh foodstuff, energy and State-controlled commodities such as healthcare and education services) in April rose by 0.19 percent against the previous month and 1.76 percent compared with the corresponding time last year, bringing the inflation rate in the first four months of this year to 1.76 percent.

Lai Chau urged to improve business climate

Prime Minister Nguyen Xuan Phuc has asked the northwestern mountainous province of Lai Chau to take drastic measures in order to improve its business climate and modernise its infrastructure.

The leader made the request at an investment promotion conference in Lai Chau on April 23, where he said the province should gear towards high-quality agriculture and forestry, and science-intensive and high value-added industries while paying attention to human resource development.

He suggested the province expand its market to adjacent localities to boost export, attract more investments and facilitate enterprises’ operation.

Another important job is to continue improving knowledge for locals, ensuring their livelihoods and social welfare, protecting forests and preserving the locality’s traditional culture, PM Nguyen Xuan Phuc said.

The Government will maintain political stability and improve the investment climate to help investors do business in Vietnam and Lai Chau province in particular, the leader promised.

The Party, State and Government consider assisting poor provinces and extremely disadvantaged localities to escape from poverty and spur socio-economic development a top priority, he affirmed.

Investors, for their part, should fulfill commitments they have made before starting their operation in the locality, the PM said.

The Government leader noted with joy investors’ commitment of over 8 billion VND (360 million USD) in investment in Lai Chau made during the conference.

Speaking at the event, Chairman of the provincial People’s Committee Do Ngoc An pledged to do his utmost to improve the local investment environment and create the best possible conditions for investors to run their businesses in the locality effectively and sustainably.

Businesses will receive investment licences within 20 days from the date their legal dossiers are submitted to the People’s Committee, he said, promising to support investors in land clearance as well as labour and electricity supply.

Covering an area of over 900,000 hectares and with a population of 430,000, Lai Chau is blessed with fertile land, favourable weather conditions and rich natural resources.

Such blessings, together with the Ma Lu Thang national border gate, are advantages for the province in economic development and trading with other localities and foreign countries. However, the locality’s development achievements over the past years have yet to match its potential and strengths.

Since 2004, Lai Chau has attracted a total of 124 projects with a combined registered capital of nearly 205 trillion VND (9.2 billion USD), mainly focusing on hydro power plants, industrial and agricultural production, commercial centres, tourism and health care.

The southern province of Dong Nai called on Japan to land investments in hi-tech projects, support industry development, energy saving, agricultural and industrial processing at an investment promotion conference held in the locality on April 23.

The event drew the participation of nearly 50 Japanese enterprises, led by Isao Iijima- special advisor to Prime Minister Shinzo Abe. The companies, mostly operating in agriculture, transportation, manufacturing, health care, tourism and environment, came to seek investment opportunities in Vietnam in general and Dong Nai province in particular.

Japan is the 4th largest trade partner of Vietnam with two-way trade in 2015 reached 28.5 billion USD, said Minister of Planning and Investment Nguyen Chi Dung, adding that with nearly 3,000 projects worth 38.8 billion USD, Japan is Vietnam’s leading partner.

Dung highlighted that Vietnam pledges to complete and run a comprehensive market economy based on market rules, eliminate institutional barriers while fine-tuning the investment climate with focus on administrative improvements.

Meanwhile, Chairman of the provincial People’s Committee Dinh Quoc Thai stated that of the total 1,586 foreign direct investment projects valued at 28.4 billion USD in the province, Japanese investment accounted for 206 projects with total registered capital of over 3.7 billion USD.

Dong Nai is now calling for investment in agricultural projects in Dong Nai Food Industry Corporation in Xuan Loc district, tourism projects in Thac Mai and Suoi Mo tourism sites as well as Nhon Trach inter-port road and Trang Bom-Xuan Loc road, he added.

Speaking at the conference, Akira Motomiya, General Director of Fujitsu Vietnam Limited Computer Product Company, said that Dong Nai boasts a range of advantages to lure investments, including convenient transport system, available industrial infrastructure, high-quality and abundant workforce and favourable investment climate.

Strong flow of Japanese investment expected in Ho Chi Minh City

Special advisor to the Japanese Prime Minister Iijima Isao said he expected strong Japanese investment flow into Vietnam, particularly Ho Chi Minh City, in the coming years, given the great potential of the southern metropolis.

Addressing a conference promoting investment and tourism between Vietnam and Japan on April 22 in Ho Chi Minh City, the special advisor hailed the close cooperation between the two nations, as seen in trade exchanges and connection among their enterprises.

Chairman of the municipal People’s Committee Nguyen Thanh Phong affirmed that the city welcomes and provides favourable conditions for foreign investors, including those from Japan.

He noted that the city needs investment in agriculture, tourism, communication and information technology, flood solutions, urban railway and health care, which are sectors Japanese businesses are capable of investment.

This will be a prerequisite to help foster the cooperative ties between Japan and the city, as well as Vietnam, according to the official.

He outlined the general directions for investment attraction in the years to come, which focus on nine service sectors, including finance, trading, logistics, tourism, health care, education–training, and four key industries of mechanical engineering, electronics-ICT, chemicals-rubber and food processing.

Experts at the participants agreed that as an economic hub of Vietnam, HCM City has been and will be an important long-term destination for Japanese investors.

Japan is the sixth biggest foreign investor in HCM City with 865 valid projects worth a total of nearly 2.9 billion USD, mostly in processing, manufacturing, wholesale and retail of motorized vehicles, scientific and technological activities, and real estate.

The city also sees a continuous surge in the number of Japanese visitors over the past few years.

HCMC remains mired in woes

The secretary of the HCMC Party Committee said the city is still grappling with woes over public governance, economic restructuring and growth model, zoning, environment, transport, and food hygiene and safety.

Dinh La Thang pointed out these challenges at the closing session of the 21st meeting of the HCMC People’s Council on April 21. He said the city scored lower in the Vietnam Provincial Governance and Public Administration Performance Index (PAPI) while many problems need to be solved for the public good.

Thang said in the previous five-year term, the HCMC People’s Council fulfilled its assigned duties and found new ways to deal with problems. But he cited a survey as showing that the city ranked 18th in PAPI in 2011 but its ranking fell to 47 among the nation’s 63 provinces and cities last year.

PAPI indicates residents’ evaluation when interacting with authorities. The index is a tool to monitor governance and management capabilities of authorities to help them serve citizens better.

Thang said this is a big challenge for the city to become a place that is worth living.

City chairman Nguyen Thanh Phong said the city maintained reasonable growth rates and its economic structure changed in the right direction in the 2011-2015 period. The city’s economy expanded at an average rate of 9.6% per annum in the five-year period, and average per capita income reached US$5,217 at the end of last year.

The city took measures to support businesses to operate and recover production, and became the key driver for economic growth in the south and the nation as a whole.

Phong stressed the city will boost administrative reforms, ensure transparency and create a fair business environment for enterprises in an effort to put the city on the top five list of the PAPI, the Provincial Competitiveness Index (PCI) and the Public Administration Reform (PAR) Index.

Phong told chairpersons of districts and heads of departments to create favorable conditions for investors to do business.

HCMC asked to review public investment efficiency

Deputies of the HCMC People’s Council on April 21 requested an overall review of public investment as the city has poured huge capital into hundreds of public projects.

Speaking at a council meeting on April 21, deputy Lam Thieu Quan said it is important for the city to review the efficiency of public investment projects and give priority to urgent works. In recent times, the city has injected hefty sums into public projects but has not assessed their efficiency yet.

The city government should get more projects executed under public-private partnership (PPP) format to reduce pressure on the city’s budget, Quan said before the council gave the nod to the city’s public investment plan for the 2016-2020 period.

Accordingly, the city will implement a dozen public investment programs with combined capital of over VND6.2 trillion (US$280.5 million) and 317 projects of Group B worth a total of VND90.5 trillion.

The council approved in principle a project to build the campus of Pham Ngoc Thach medical university at a total cost of VND2.5 trillion before it is submitted to the Government for approval. The city will also build the VND350 billion office of the border guard command.

In addition, the council agreed that capital mobilization for future public investment projects would depend on actual needs. The local government will be able to implement projects under the PPP or other formats if they can draw private investors to them.

Su Ngoc Anh, director of the Department of Planning and Investment, said the real capital demand of public projects in the city is around VND310 trillion. In the next five years, the city will focus on key projects with combined capital of VND215 trillion, with a maximum of VND75 trillion set aside for traffic congestion reduction projects, followed by those for manpower training and flood control.

The city has mobilized VND30 trillion for 18 projects under the PPP format in the year to date and should continue this capital mobilization method in the coming time, Anh said.

HCMC vice chairman Le Van Khoa said the city has reviewed 1,269 projects covering a combined area of 18,898 hectares and invalidated approvals for 571 projects with 5,905 hectares. The city has scaled down the area of nine other projects by 137 hectares.

Japan to open rice processing firm in Yen Bai

Japan’s companies have planned to open a rice processing and trading firm in the northern mountainous province of Yen Bai.

The information was heard during a working session between a business group from Japan’s Seibu Nousan Vietnam and Nhat-Viet Agreen companies with officials of the province on April 22.

During the meeting, director of the Seibu Nousan Vietnam Ichikawa talked about the implementation of the project while asking for information on the granting of a business license and other procedures, to carry out the work in the locality.

Vice Chairperson of the provincial People’s Committee Nguyen Chien Thang affirmed that the province will create the best possible conditions for the establishment of the rice firm in the locality.

Officials of the province’s relevant authorities also provided information about conditions and preferential policies for enterprises and investment projects in the locality’s agriculture and rural development in accordance with Vietnam law.

On the same day, representatives from the Japanese companies conducted fact-finding trips in some clean vegetable planting projects and a variety and sampling centre in the city.

PM hails PetroVietnam’s contributions to national energy security

Prime Minister Nguyen Xuan Phuc has applauded the Vietnam National Oil and Gas Group (PetroVietnam) for its noted contributions to ensuring national energy security.

At a working session with PetroVietnam’s leaders on April 22, the PM said in recent years, the group has significantly contributed to national industrialisation and modernisation, State budget collection, as well as the country’s socio-economic development.

He asked the group to effectively actualise the Politburo’s Resolution No. 41-NQ/TW on a development strategy for the oil and gas industry through to 2025 with a vision towards 2035.

The resolution charts major tasks for the sector, including oil and gas exploration, exploitation and processing; product reserving and distribution; and oil and gas services, particularly high-quality technical ones.

PetroVietnam’s leaders and staff were also urged to do their utmost to overcome shortcomings and limitations to ensure the group’s stable development.

PetroVietnam should join hands with ministries and agencies to review regulations and rules in order to improve the efficiency of State management and business administration, increase the application of scientific and technological advances, and propose comprehensive solutions to fulfill tasks assigned by the Party, State and people.

PM Nguyen Xuan Phuc noted his belief that with its traditions and achievements, the group will make bigger strides in the future.

As one of the country’s important economic and technological groups, PetroVietnam is focusing on five key areas of operation - oil and gas exploration and production; refinery and petrochemicals; the gas industry; power generation; and high-quality petroleum technical services.

Reportedly, the group exploited a total of 4.56 million tonnes of crude oil and 2.78 billion cubic metres of gas in the first three months of this year, 7.2 percent and 11.7 percent more than its quarterly targets, respectively.

It also provided 5.21 billion kWh of electricity for the national power grid and contributed more than 18.3 trillion VND (824 million USD) to the State coffer.

InterContinental moves closer to tower residence

Amid a takeover by Mirae Asset Securities Co. and AON, Keangnam is continuing preparations to open an InterContinental hotel in its 72-storey building in Hanoi.

A source from Keangnam Enterprises said that the company was resuming its contract with InterContinental Hotel Group (IHG) to put a 5-star hotel in the building. This will be the second InterContinental hotel in Hanoi so far, after the one in Tay Ho district.

“We are in the final stretch. The InterContinental hotel will be launched in Keangnam Hanoi Landmark 72 Tower in the next couple of months, after more than three years during which the two sides could not come to an agreement,” the source said.

In a previous interview, Keangnam president Lee Hyo Jong told VIR that IHG and Keangnam had come to an agreement and were making preparations to open the InterContinental Hotel at Keangnam in the second half of 2015.

However, the deadline was not met. The InterContinental Hanoi Landmark 72 was initially due to be opened at the end of 2013. However, a disagreement between the two companies in terms of their creative vision for the hotel’s overall style and facilities delayed the opening.

The 5-star luxury hotel is set to be the highest hotel in Southeast Asia. Perched at the very top of the Landmark 72 building, taking up floors 62-71, the 359-room hotel  will have spectacular views and access to a variety of restaurants and state-of-the-art meeting facilities.

Keangnam Landmark Tower is the tallest building in Vietnam, consisting of six separate components: apartments for sale, serviced residences, offices for lease, a retail podium, an entertainment area, and a hotel.

Promoting regional links to increase economic growth

Promoting regional economic links toward creating a driving force for the national economy has received special attention from the government.

Regional economic linking has improved coordination between central and provincial agencies in outlining policies and allocating investment more efficiently.

The government’s decentralization of economic management has made provinces more proactive in planning their own economic development programs. Decentralization has revealed a number of issues around management efficiency and effectiveness in turning out products.

A lack of coordination in regional economic links has caused much development investment to be wasted and localities haven’t made full use of each other’s infrastructure. The unintentional result has been disconnected local economies, breaking up the unity of the national economy.

Deputy Prime Minister Vuong Dinh Hue said, “Without economic benefits everything, including geographical and cultural factors, will be only theoretical. The motive force for regional economic links is to address a reality acknowledged by many economists: that Vietnam’s 63 cities and provinces represent 63 economies which are similar but disconnected from each other.”

Provinces and cities have separately increased their investment promotion activities. They have demonstrated dynamism but on the other hand, have failed to achieve coordination of directions, policies, and information, especially from the point of view of investors.

To make regional links effective in Vietnam’s economic restructuring and growth model change, says Le Thanh Quang, Khanh Hoa provincial Party Committee Secretary, ministries and agencies should focus on key projects, infrastructure investment, transportation improvements, and handling conflicts of interests between regions.

Quang, who is also head of the coordination board of the central coastal region, underlined the importance of decentralization, allocating additional powers and responsibilities to the local level.

“We urge the government to recognize the functions, missions, and authority of a regional coordination board. Also, a regional preferential mechanism should focus on fisheries, seafood processing, and maritime tourism corresponding to cultural and historical tourism and the development of coastal economic zones and a seaport economy accompanied by a specific implementation roadmap until 2020 with a vision to 2030,” according to Quang.

Footwear exports point to strong growth trajectory

Vietnam exporters posted a 9.6% year-on-year jump in overseas footwear consignments to US$2.78 billion for the first three months of 2016, according to the latest statistics from the General Department of Vietnam Customs.

The US was the largest export market for the three months January-March, accounting for a 34% market share with sales of US$945.56 million, said the Department.  Sales to the US were up over 11.6% when compared to last year’s corresponding period.

In terms of market share, the US was trailed by Japan at US$193 million, China at US$190.74 million, and Belgium at US$172 million in sales.  

Overall most of the major overseas markets experienced growth in terms of sales during the period, said the Department, with only a few smaller markets such as Brazil, Hungary and Spain experiencing declines.

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