Gem, precious metal exports up

The export turnover of gems and precious metals hit US$1.1 billion last month, with Viet Nam's trade surplus generating almost $850 million, according to the General Department of Customs.

During the past seven months, export turnover of these commodities reached $2.32 billion, an increase of 51.6 per cent compared to same period last year.

The import turnover also rose by 38.9 per cent, valued at $452 million. During the same period, Viet Nam's trade surplus peaked at $1.87 billion.

Money carrying limit increased

According to new circular 15/2011/TT issued by the State Bank of Viet Nam, individual travellers will be allowed to carry more than US$5,000, or other foreign currencies of the equivalent value, and VND15 million ($720) when entering or exiting Viet Nam. However, travellers must declare the money at customs.

Chemical plant for Thai Binh

Thai Binh Province's authorities have approved a plan by Mining Chemical Industrial Corp, a subsidiary of the Viet Nam Coal and Mineral Industrial Group, to invest in an ammonium nitrate plant in the province.

The US$280 million plant will be located in Thai Tho Commune's industrial cluster within Thai Thuy District. The plant will have a capacity of 200,000 tonnes per year, including two workshops for producing nitric acid and ammonium nitrate.

The plant is expected to contribute an annual value-added tax of VND120 billion ($5.76 million) to the State budget.

Rusalka project to be renewed

The Rusalka resort project has gone into liquidation under a new Government decision. The process is set to be carried out by several major Russian companies including Elaitrox, Luzhniky and CARGO, according a representative of the three companies.

Khanh Hoa Province People's Committee will grant the certificate for new investors and continue to construct Rusalka as a new project.

The Rusalka project, known as "Mermaid", covers 43.5ha in Vinh Hoa Ward, and was licensed for investment in 2000, when it was one of the three biggest tourism projects.

Energy-saving expo opens

An international expo on energy-saving and green technology, Enertec Expo 2011, opened yesterday in HCM City.

Local and foreign companies are showcasing their products at 150 booths during the four-day event, offering consumers with a wide range of choices.

At the opening ceremony, Deputy Minister of Industry and Trade Tran Tuan Anh said that 2011 was the first year that the country had applied Law on Energy Efficiency and Conservation. Enertec Expo was an important event to promote the effective use of energy in line with the law, he said.

As part of the expo, the organisers will hold several seminars on power saving and renewable energy development, giving both international and domestic firms a chance to look into possibilities of green energy co-operation.

HCM City to host Secutech Vietnam

Secutech Vietnam 2011 — an exhibition on safety, security and fire-fighting technologies and equipment — will open at the Saigon Exhibition & Convention Centre (SECC) in HCM City on August 24.

The three-day event will attract over 110 businesses from 12 countries and territories worldwide, with more than 200 booths to display their 500 latest products.

Twenty seminars will be held to focus on current major issues, such as the Smart Building Supervision and Management Forum, forums for urban traffic monitoring, fire prevention and fighting and rescue.

Net cast for juicy seafood import favours

In light of Ministry of Finance’s (MoF) Official Letter 10612/BTC-TCHQ dated August 10, 2011, the ministry gave the nod to some proposals concerning raw seafood imports for export production the Vietnam Association of Seafood Exporters and Producers (VASEP) earlier voiced.

Accordingly, the MoF agreed to a VASEP proposal relevant to supplemental customs declarations. Particularly, if import-export shipments are found with wrong declarations in the goods compared to actual figures they can later submit supplemental customs declarations with adequate import-export goods amounts.

Besides the MoF also green-lighted tax refund towards imported seafood materials for export production as well as clearing payment methods between the seller and the buyer involved in import-export shipments.

The MoF agreed for import businesses owing money to foreign partners for material imports to gradually deduct that amount in their following export shipments.

The MoF’s document was applauded by seafood exporters.

VASEP deputy general secretary Nguyen Hoai Nam assumed easing regulations would help push up seafood exports.

General director Nguyen Quang Tuyen at Cafico Vietnam Joint Stock Company, a big seafood import-export trader, said customs facilitation would save firms time and expenses.

Before Official Letter 10612 came into force from August 10, 2011 import export shipments with wrong declarations in the goods amount could not submit additional declarations. This made businesses unqualified for tax exemption or refund.

Besides, if firms import materials for export processing then later resell products to the same foreign partners and both sides agree to a clearing payment method if the local firms still owe a certain amount to their foreign partners relevant to import shipments, they cannot complete necessary legal procedures for tax exemptions or refunds.

In that case, they must buy the greenbacks to pay up the debt. Now in light of MoF’s Official Letter 10612 they can deduct that debt in their following export shipments to the foreign partners and still enjoy tax incentives.

Each year Vietnam imports around $200 million in seafood materials, according to the Ministry of Agriculture and Rural Development.

Rice storage network falls behind
 
The plan approved by the Ministry of Agriculture and Rural Development will add 2.5 million tonnes of modern storage space in the Cuu Long (Mekong) Delta and HCM City and upgrade existing warehouses to create a total capacity of 4 million tones.

The VND6.73 trillion (US$323.4 million) project is now likely to be delayed by two years.

Doan Xuan Hoa, deputy director of the Department of Agro-forestry and Fishery Products Processing and Salt Industry, said at the conference last week that by the end of this year, only 1.12 million tonnes of storage space would be ready, or 45 per cent of the target.

Nguyen Ngoc Nam, deputy general director of the Viet Nam Southern Food Corporation (Vinafood 2), one of the several agencies tasked with refurbishing and building the warehouses, said his company faced a lot of difficulties, especially finding land and funds for the task.

Le Van Huong, deputy chairman of the Tien Giang Province People's Committee, said the province would not be able to complete its task of creating 250,000 tonnes of capacity by this year since businesses lacked the required funds and the province was unable to support them.

Le Thanh Tri, deputy chairman of the People's Committee of Soc Trang Province, said the high bank interest rates dissuaded businesses from borrowing for the task.

Huong, Tri and other delegates agreed to petition the Government to delay the completion date to 2013.

They also wanted the Ministry of Finance and the State Bank of Viet Nam to allocate funds to them at preferential rates.

Deputy Minister of Agriculture and Rural Development Ho Xuan Hung said he would apprise the Government about the delegates' opinions and work with relevant agencies to resolve the difficulties.

But difficult or not, more storage facilities had to be built to help exports, reduce port-harvest losses,and improve the quality of Vietnamese rice, he said.

Sustainable industries in spotlight

Deputy Prime Minister Nguyen Thien Nhan has called on the Viet Nam Business Council for Sustainable Development to assist the country in creating a sustainable development sector, with special regard to environmental protection technologies amongst others.

Nhan praised the council's development targets while receiving its Co-Chairmen Doan Duy Khuong, also vice president of the Viet Nam Chamber of Commerce and Industry (VCCI), and Gary Schutz, general director of Holcim Viet Nam, in Ha Noi on Tuesday.

Schutz said that the council was currently devising co-operative plans in the fields of clean technology, energy, climate change, development, education and ecology, and planned to arrange a forum for its member companies to exchange and co-operate in building quality pilot initiatives and models of sustainable development.

The council was set up by the VCCI with the participation of many international and domestic corporations and small-and medium-sized enterprises.

It was designed to promote the role of the business community in implementing a sustainable development strategy in Viet Nam, contributing to economic growth while ensuring social progress and equality, hunger eradication and poverty reduction, job generation, environmental protection, biodiversity and the ability to cope with climate change.

Gov’t approves $1bln imported gas docks

The Prime Minister has approved a project on building a system of gas import docks at Ham Tan district in the central province of Binh Thuan , according to Do Khang Ninh, general director of PetroVietnam Gas (PV Gas).

Accordingly, the docks will include a port where ships go to have gas put on or taken off them and buildings used for storing gas. The docks project has a total investment of more than $1 billion.

As scheduled, once completed and put into operation, the docks will be capable of receiving about 2-3 million tonnes of imported gas per year.

The project planning will be accomplished by PV Gas later this year. The construction was expected to be started by 2012.

Pepper price peaks at $5,900 a tonne
 
The domestic pepper price hit a 15-year peak yesterday morning as high demand and low supply on the world market forced up the price, reported head of the Viet Nam Pepper Association's office manager Tran Duc Tung.

The per tonne price reached VND124 million (US$5,900) yesterday, an increase of VND4 million ($190) per tonne over the previous week's price, Tung said.

Last Saturday, the price stood at VND120 million ($5,700) but jumped to VND122 million ($5,800) on Sunday, he added.

"At that time, the farmers' stockpiled volume was very small as traders have bought a big quantity," Tung said.

He said that the domestic pepper price was aligned with the world market.

"Price in the world market is surging due to a higher demand from the Ramadan month. Meanwhile, the supply from main pepper export countries, including India, on holiday has been down," Tung said.

Thanks to the high prices, pepper is one among few exports predicted to continuously increase in the final months of this year.

The Ministry of Agriculture and Rural Development just announced their new forecast regarding pepper exports.

This year, the ministry said, the pepper export turnover might reach more than $800 million, up by $70 million from previous forecasts and about $380 million from last year.

Last month, the country exported more than 15,000 tonnes of pepper, worth a total value of more than $90 million. With these figures, the total export volume in the first seven months was 85,000 tonnes, reaching an export turnover of $465 million.

“Trade policy recommendations” book launched
 
A book entitled “Trade Policy Recommendations from Vietnamese Business Associations” was launched by the European Chamber of Commerce in Vietnam (EuroCham), in coordination with the Ministry of Industry and Trade (MoIT) in Hanoi on August 19.
 
Jean Jacques Bouflet from the EU delegation in Vietnam said the book covers major issues affecting the business climate and those that attract the most attention of Vietnamese businesses, such as tax, import and export, intellectual property rights, environmental issues, infrastructure and the issuance of legal documents.
 
It also comments on operations of business associations to improve the voice of Vietnamese Business Associations (VBAs) in the business community. This is part of the project “Capacity building on trade policy for Vietnamese Business Associations” funded by the European Union (EU) under the framework of the Vietnam–EU Multilateral Trade Assistance Project III (MUTRAP III).
 
Phan Duc Hieu from the Central Institute for Economic Management (CIEM) said the EuroCham supported nine Vietnamese Business Associations including Vietnam Textile and Apparel Association (VITAS), the Vietnam Leather and Footwear Association (LEFASO), the Vietnam Association of Seafood Exporters and Producers (VASEP), the Hanoi Small and Medium Enterprises Association (HASMEA), the Ho Chi Minh City Handicraft and Wood Industry Association (HAWA), the Young Business People Association of Ho Chi Minh City (YBA), VCCI Ho Chi Minh, Dong Nai Province's Exporter and Importers Club and the Can Tho Business Association (CBA) in writing  the book.
 
VBAs members said they highly appreciated the initiative of EuroCham and the efforts of VBAs in giving recommendations of Vietnamese enterprises to the Vietnamese Government.
 
It will create an effective communication channel to bring our recommendations to the Vietnamese Government, they added.
 
Eighth World Congress of WFUCA opens in Hanoi
 
The eighth congress of the World Federation of UNESCO Clubs, Centres and Associations (WFUCA) opens in Hanoi on August 19.
 
The congress was attended by Vietnamese Deputy Prime Minister Nguyen Thien Nhan; WFUCA President George Christophides; and Genc Seiti, representative of the UNESCO Director General, and representatives of Federations of UNESCO Associations all over the world.
 
WFUCA President George Christophides highlighted Vietnam’s efforts in hosting the federation’s congress and 30th anniversary.
 
UNESCO Director General Irina Bokova sent a congratulatory message to the congress, saying that Vietnam has fulfilled its commitments throughout the hosting of the congress.
 
She said as the world is rapidly changing, she hopes this year’s congress will be a good opportunity for Federations of UNESCO Associations across the world to promote cooperation and master the technology needed to help each other.
 
Speaking at the opening ceremony, Deputy PM Nhan appreciated recommendations proposed by UNESCO to settle significant global issues.
 
He said WFUCA’s eighth congress will be a chance for international friends to learn more about Vietnamese people and their culture.
 
On the sidelines of the congress, there were various activities such as an exhibition on Vietnam’s achievements in culture, science, and education; a forum to provide businesses with information about cultural, scientific, and educational projects; and a gala programme to welcome the congress.
 
16th Architects Regional Council Asia Forum concludes
 
The 16th Architects Regional Council Asia Forum (ARCASIA) titled “Asian cities in the 21st century” concluded in Da Nang city in Hanoi on August 19.
 
 Deputy PM attends Asian Architects Forum in Danang
At the forum, architects from the Asian region focused on assessing the situation of urban areas in Asian countries. Delegates also discussed the negative impacts of global climate change on urban development as well as devising measures to overcome the aftermath of natural disasters.
 
The development trends of modern urban architecture in Asia in which advanced technologies and cultural identities are considered the keys to success in socio-economic development were also a feature of the forum. Emphasis was also placed on the need to develop architecture in harmony with the environment.
 
Participants focused on sharing experiences in preserving and promoting the values of architecture and the cultural heritages of Asian nations.
 
Architect Nguyen Quoc Thong, Vice President of the Vietnam Architects Association, said that Vietnam can learn many lessons through sharing experiences in mitigating natural disasters. He said that the country should seek advice on how to overcome the consequences of natural disasters, and added that architects should be considered co-ordinators in assessing damages and building slums for natural disaster victims.
 
VND150 billion needed for building Ly Son sea dykes
 
The Quang Ngai provincial People’s Committee has asked the Prime Minister to allocate VND150 billion to help the island district of Ly Son build a sea dyke system to cope with rising sea levels.
 
The investment will be sourced from the national fund for islands and the East Sea in 2012, aimed at connecting sea dykes around the island and preventing landslides.
 
The 5km dyke system will be built in An Vinh and An Hai communes at an estimated cost of VND600 billion.
 
The project is designed to benefit more than 1,000 local households in coping with surging sea levels in the flood and storm season.

Bird's nest industry shows swift growth
 
With its favourable weather, Viet Nam has good potential for farming swifts for edible nests, but local authorities should make zoning plans to ensure the sustainable development of the new industry, a conference heard in HCM City yesterday.

Swift nests are high in protein, low in fat, contain various amino acids essential to the human body and other beneficial substances.

Truong Hoang, deputy director of the city Agriculture and Rural Development Steering Committee, said swifts usually build their nests in deep caves on islands or along steep cliffs. In the past, nests were used only to serve royalty and nobility.

The swift-breeding industry has developed quickly in many places like Indonesia, Malaysia, Thailand, the Philippines, Australia, and Hong Kong, producing more than 100 tonnes of nest annually worth more than US$200 million.

Malaysia and Thailand are the two biggest suppliers, accounting for more than 95 per cent of world output, Hoang said.

The birds also benefit farmers by eating harmful insects, he said.

In Viet Nam, the lure of high profits has seen many local and foreign investors invest in breeding the birds indoors in recent years, he said.

Le Huu Hoang, general director of Khanh Hoa Bird Nest Company, said it is not easy to breed the bird.

The buildings for breeding them need to be constructed at locations near their natural habitats and along their natural flight paths while the interiors should be made conducive for their nesting complete with artificial rain and temperature control, he said.

The biggest difficulty is in luring the birds to the houses and keeping them there, he added.

Nguyen Khoa Dieu Thu, a leading swift researcher, said more than 1,000 houses have been built for breeding the birds in 20 provinces and cities.

Viet Nam has many places suitable for it, and it is likely to become a profitable industry in the country just like other places in the region.

Besides developing indoor breeding, local authorities should also make efforts to protect the birds in their natural habitats, mostly on islands, she said.

Global demand for bird's nest is expected to increase by more than 10 per cent a year in the next two decades, Le Vo Dinh Tuong of the HCM City Institute of Chemical Technology said.

With supply far below demand, prices have spurted. From a mere $30 per kilo in 1970 the cost increased to $1,500 per kilo last year.

With proper planning, bird's nest could become one of the country's major export items in the near future, he said.

According to recent statistics, Viet Nam produces around 10 tonnes of birds' nests a year.

Foreign firms dominate animal-feed market
 
Foreign firms dominate the supply of animal feed and breeding stock in the domestic market, and control the prices of both, industry insiders say.

There are about 20 foreign invested firms producing animal feed in Viet Nam and they account for 65-70 per cent of the animal feed market.

Pham Duc Binh, deputy chairman of the Viet Nam Animal Feed Association, said feed for shrimp is mostly supplied by foreign firms Thailand-invested CP Viet Nam, Taiwan-invested Uni-President Viet Nam and France-invested Tomboy.

"Shrimp is the fisheries sector's most important export product. The area under shrimp cultivation is expanding and the demand for shrimp feed is increasing, but domestic companies cannot enter the shrimp feed market," said Binh.

Foreign firms also dominate the supply of shrimp fries, he added.

Vu Thi Ngoc Trinh, deputy general director of the Minh Dung Veterinary Medicine Company, said forein companies account for 90 per cent of the veterinary and aquatic medicine market.

In the poultry breeding sector, three foreign companies – CP Viet Nam, Japfa and Emivest – now supply nearly 100 per cent of the breeder chicken in the southern region.

The three companies supply about 6.2-6.5 million of breeder chicken every month.

The price of a one-day-old chicken is now VND26,000-27,000 a head, up 3.6 times compared to January.

Binh said the production costs for a day-old chicken is now about VND8,000-9,000 a head.

Breeding companies normally earn profits of 30 per cent from producing breeding stock, but in Viet Nam, they are earning much more, he said.

This year the prices of animal feed have increased seven times and each time, it was pushed up by foreign companies, according to animal feed agents.

These companies often cite a hike in material prices as justification for increasing animal feed prices.

However, when domestic firms are able to reduce their animal feed prices, foreign firms retain their higher prices, and are able to do so only because they occupy a dominant market position, said the director of a local animal feed company in Dong Nai Province.

"Because of their large market share, foreign companies can impose their prices on the market and breeders have no choice but to accept it," he said.

Domestic producers say they now have to import 60-70 per cent of materials for making animal feed because the country does not have raw material production zones large enough to replace imports.

They also have to raise loans at high interest rates while foreign-invested companies have the advantage of borrowing loans in US dollars at low interest rates and are supported by their parent companies abroad in importing materials at low prices and making deferred payments.

Diep Kinh Tan, deputy minister of Agriculture and Rural Development, said the increasing price of breeding stock and feed in the past years have shown the weak managing capacity of concerned agencies.

The ministry will ask relevant ministries and sectors to issue policies to support the domestic animal husbandry sector with increased access to preferential credit, Tan told the Nguoi Lao Dong (the Labourers) newspaper.

The agriculture ministry would support domestic private companies in producing breeding stock.

Motorbike market starts to heat up
 
The domestic motorbike market is heating up, with many companies announcing plans to expand their production while others are entering the market for the first time.

The race started when late last month, Honda, one of the biggest motorbike companies in Viet Nam, announced plans to construct its third plant in the northern province of Ha Nam with a capacity of 500,000 units per year.

With this fresh investment of more than US$120 million, the total capacity of Honda in Viet Nam will increase to 2.5 million of motorbikes per year.

Right after the new Honda plant was announced, Piaggio Viet Nam also said that their productivity would increase to 300,000 from 100,000 units per year by the end of next year.

From now until the end of 2012, the company would invest $40 million in developing production and setting up a research and development centre in Viet Nam to design motorbikes to serve Asian markets, head of the company's foreign relations department Tran Thu Mai told Doanh Nhan Sai Gon (Saigon Entrepreneur Monthly).

This came as a surprise, given that the company's first plant only became operational two years ago.

Piaggio's strategy has been actions as well as words. At the start of this month, the company introduced new products with the slogan "Art of the Motorbike".

The competition has also been made tougher by Yamaha Viet Nam, who affirmed that the company would invest more than $26 million in developing their production in Viet Nam.

The company will expand its plant in Soc Son District to increase their capacity to 1.5 million units per year.

Also this week, a company from Italy, HP Motorcycle, officially launched its products in Viet Nam, with three scooters designed for the Vietnamese market.

This competition among companies is easy to understand because Viet Nam is an attractive market.

A report from the European Chamber of Commerce in Viet Nam said that despite difficult economic conditions, about 2.75 millions motorbikes were sold in 2010, an increase of 20 per cent over the previous year.

The chamber predicted that the figure would increase to 3 million per year from now to 2012. If that predication is true, Viet Nam will become the fourth biggest motorbike market in the world.

However, the Ministry of Industry and Trade said although it was still increasing, the domestic motorbike market's growth rate had declined.

Traders shared the same view, saying that in the next three years, the market would hit a peak, then begin to fall.

Gold prices test new highs as global uncertainties grow

The domestic gold price yesterday broke another record, with major gold dealers all quoting prices of VND47 million to VND47.5 million (US$2,279) per tael, as global prices soared, fueled by growing eurozone debt fears and deepening signs of a second US recession.

Gold stands at a whopping VND7 million higher than its mark earlier this month.

As the US reported a sharp drop in factory activity in its US Mid-Atlantic region and an unexpected slump in used home sales – and markets worried about the health of European banks – the global gold price hit a record of $1,864.14 per ounce, about VND500,000 below the domestic price. (One tael is equal to 1.2 ounces.)

Many gold dealers adjusted their prices about 10 times during the day, with the distance between buy and sell prices widening to VND450,000 per tael from VND200,000 on Thursday, reflecting the growing risks in gold trading.

Investors and speculators in both Ha Noi and HCM City flocked to the gold shops yesterday, some intending to buy but some others just to come and watch prices.

The trend wasn't yet clear, commented Sai Gon Jewelry Co general director Nguyen Ngoc Que Chi. "The sudden increase encourages people to worry about a sudden decline," Chi said.

The State Bank of Viet Nam was keeping close watch on price changes and was ready to apply measures to prevent speculation similar to what occurred last week, said the deputy director of the central bank's HCM City branch, Nguyen Hoang Minh.

Last Tuesday, the State Bank allowed the importation of five tonnes of gold to meet the sudden strong demand and cool the domestic price. —

Book gathers firms' trade policy views

The European Chamber of Commerce (EuroCham) is publishing today a volume entitled Trade Policy Recommendations from Vietnamese Business Associations.

"We are pleased to support Vietnamese business associations in publishing the book," EuroCham executive director Matthias Duehn said yesterday.

This book seeks to summarise for the Vietnamese Government the positions of member companies of various Vietnamese trade associations on key issues affecting the nation's business climate, including taxation, import and export duties, intellectual property rights, environmental issues, infrastructure and the legal system.

Publication of the book is part of a EuroCham project entitled Capacity Building on Trade Policy for Vietnamese Business Associations. The project is funded by the EU under the framework of the Viet Nam-EU Multilateral Trade Assistance Project III (MUTRAP III).

To compile the book, EuroCham polled nine business associations: the Viet Nam Textile and Apparel Association, the Viet Nam Leather and Footwear Association, the Viet Nam Association of Seafood Exporters and Producers, the Ha Noi Small- and Medium-Sized Enterprises Association (HASMEA), the HCM City Handicraft and Wood Products Association, the Young Business Persons Association of HCM City, the Viet Nam Chamber of Commerce and Industry branch in HCM City, Dong Nai Province's Exporters and the Importers Club and the Can Tho Business Association.

"Our project team has been engaged in a variety of activities to enhance policy advocacy capacity for Vietnamese business associations," said Duehn. "From training on how to improve strategies and build capacity in policy advocacy, to collecting recommendations from member companies and compiling the book, we hope that our efforts can create an active dialogue between business associations, enterprises and the Vietnamese Government, to help business associations improve their voice."

EuroCham welcomes additional Vietnamese business associations, beyond the initial nine associations surveyed, to add recommendations to the next edition, said Duehn. The first edition is a trial and everything isn't perfect.

On the occasion of the book launch, EuroCham and members of the Vietnamese business associations hosted a roundtable dialogue with key Government representatives from relevant ministries and agencies in Ha Noi. Members of the Delegation of the European Commission, which has strongly supported the book efforts, rounded out the announcement workshop.

Exports to US lack competitiveness

Raising the competitive edge of Vietnamese exports to the US market was high on the agenda at a seminar held in HCM City yesterday.
The seminar was conducted by the Ministry of Trade and Industry in conjunction with the Viet Nam Chamber of Commerce and Industry.

Economists attending the seminar said that some commodity groups capable of competing in the US market included apparel, furniture, bags, wallets and umbrellas, fishery products, footwear alongside added-value industrial items such as machinery equipment and spare parts.

Low competitive items included knitwear and luxury apparel, which due to being poorly designed and of bad quality, have been failing to satisfy US consumer taste.

New commodities which have not yet been able to break into the US market include medical equipment, screens and projectors, accounting for only 0.001 per cent, circuits (0.003 per cent), automobile and motorcycle spare parts (0.16 per cent).

Nguyen Duy Khien, Director of the American Market of the Ministry of Trade and Industry, said that Vietnamese exports to the US had not increased due to continued focus on traditional commodities, which face considerable competition from Chinese goods.

China has surpassed Canada in becoming the largest exporter to the US. Items that Viet Nam has shown interest in exporting to the US, including textiles, footwear, furniture, electronics and toys, have mostly been covered by China, he said.

Since 2011 will continue offering challenges in terms of Vietnamese exports to the US, enterprises have up their efforts in research and improving product design while building long-term strategies aimed at boosting export performance in the US market.

Concrete and effective measures need to be implemented in support of export activities while further developing production and increasing competitiveness.

The ministry was called on to assist Vietnamese businesses in increasing trade negotiations alongside the expansion of markets while enhancing trade promotion activities.

African cotton popular for quality, price

Vietnamese producers are set to import more cotton from Africa based on its good quality and reasonable pricing, according to an official from the Viet Nam Textile and Apparel Association (VITAS).

At a seminar, co-organised by the Ministry of Industry and Trade (MoIT) and the International Trade Centre, VITAS and the Viet Nam Cotton and Spinning Association in Ha Noi yesterday, Vu Duc Giang, chairman of VITAS, said that Viet Nam had imported 357,300 tonnes of cotton from the US, India, Africa and several other countries during the course of last year.

African cotton managed to meet domestic production requirements the best however, Giang said.

At the meeting, aimed at boosting East and Southern African cotton exports to Viet Nam, Ho Thi Kim Thoa, deputy minister of MoIT, said that bilateral trade between Viet Nam and nations in Africa had seen significant growth in the past few years.

However, a lot of untapped potential remains, she added, emphasising that the meeting would help provide more information regarding cotton production and markets while creating a direct channel between Vietnamese companies and their African partners.

Thoa confirmed that Viet Nam had imported 47,659 tonnes of cotton, worth US$193.86 million, from Africa last year. From South Africa alone, volume and value came to 16,768 tonnes and $68,86 million, respectively.

However, Vietnamese producers had had to import African cotton via intermediaries, causing an array of difficulties to both exporters and importers while raising import costs.

Margin trading regulations to arrive

The State Securities Commission will issue margin trading guidelines this coming week, enabling brokerages to begin offering the service to investors.

"A margin rate of 30 per cent will be imposed to assure the safety of the market as a whole," said the head of the commission's fund management division, Pham Hong Son, in an interview with the newspaper Dau tu Chung khoan (Securities Investment), although the commission would increase the rate if more favourable market conditions warrant it.

"Securities firms, with their own risk management, will be fully entitled to implement margins for the shares for which their clients have demand," Son said.

Under the new regulations, the nation's two stock exchanges will only publish a list of shares which are not qualified to be traded on margin.

In principle, a share will be tradeable on margin if it has been listed for at least six months, the firm has no accumulated losses, and the listing has not been suspended. The stock exchange would be able to determine shares which could not be traded on margin, based on the audited financial statements of the company or determination by the exchange that the company was in violation of securities regulations.

"This approach is easy to monitor for both exchanges and investors," Son said.

About two-thirds of stock brokerages would be eligible to trade on margin as soon as the guidlines take effect, with others limited because they have accumulated losses equal to more than 50 per cent of charter capital.

Brokerages that violated the regulations on margin trading would be suspended, Son said.

PV