SBV postpones gold auctions

The State Bank of Viet Nam (SBV) is postponing gold auctions in the light of the large gap between domestic and global prices of the precious metal.

"The price gap is large but the demand for gold bullion is almost zero. The SBV has no plan yet," Nguyen Ngoc Canh, the newly-appointed head of the Foreign Exchange Management Department, told Vnexpress.

The SBV is the lone provider of gold bullion to the domestic market. Yesterday afternoon, the Sai Gon Jewellery Company (SJC) posted prices of VND35.89 million to VND36.01 million (US$1,684 to $1,690) per tael for gold on its website. At the same time, the spot price for gold on Kitco.com was $1,221.70, down from $1,222.90 on Tuesday.

In an attempt to fan market interest last year, the SBV held 76 auctions and sold a total of 1.82 million taels of gold. However, they have held off on gold auctions since the beginning of this year.

Last Monday, and for the first time since June, the SJC quoted a price that was VND5 million ($235) higher per tael than the current world price. One tael is equivalent to 1.2 troy ounces. The gap has been attributed to significant changes in the global market coupled with the slow movement of the domestic market.

"The current prices are absolutely decided by the market," Le Xuan Tung, director of Phu Quy Jewellery Company, told Vnexpress. "Nearly all people come to buy and not to sell. That's why the price of gold remains high," quipped the owner of Kim Hien Gold Shop in Hai Phong City.

Tung revealed that the SVN actually invited Phu Quy to join in gold auctions, but his company declined because of the dull picture for gold in the world market.

Experts said that if the large gap remained, it would produce more pressure on foreign exchange rates and encourage gold smuggling.

Household dairy farms to be applied in Vietnam

Household dairy farms should improve breeding skills to increase output and quality and reduce cost price because domestic material milk price is VND4,000 higher than the world price.

The delegates at a seminar hosted by the Institute of Agriculture Science for Southern Vietnam on September 24 gave the advice in respond of rising price of domestic material milk.

They warned of challenges in dairy farming to households amid reduction trend of milk material prices in the world, especially when the Trans-Pacific Partnership agreement takes effect.

If this trend goes on, milk processing plants will give priority to import of formula material instead of developing local sources.

Last year, the import turnover reached US$1 billion.

Vietnam CEO Forum refreshes strategy approaches

The Vietnam CEO Forum 2014 ‘New Game – What Moves’ reinvigorated business strategies and outlined the opportunities and risks of global integration, bringing together chief executive officers, economists and policy-makers to brainstorm ideas.

Opened on September 24 in Ho Chi Minh City, the one-day event looked at viable strategies for finance, markets and human resources in great depth.

As the ASEAN Economic Community (AEC) - a common platform for the region’s business circles - will be established in late 2015, Vietnamese firms are expected to enhance their operations in a bid to become more competitive.

Global changes bear opportunities and challenges, but what mattered was how to make the most out of each trend, Chairman of the FPT Board of Directors Truong Gia Binh said.

Economists said the birth of the AEC will deal a “strategic blow” to domestic enterprises, forcing them to devise long-term and strategic business plans.

Deputy Prime Minister Vu Duc Dam and economist Pham Chi Lan were amongst the key-note speakers.

The annual event was organised by the municipal Young Business People Association, Saigon Entrepreneurs Club, 2030 Businessmen Club, Leading Business Club and the Business Association of Vietnamese High-Quality Goods.

Vietnam first enjoys trade surplus with Chile

Vietnam has not only tackled a deficit but generated a trade surplus with Chile since a free trade agreement between the two countries came into effect on January 1, 2014.

The Vietnamese Trade Office in America reported that Vietnam’s exports to Chile skyrocketed 102% to more than US$250 million in the first seven months of this year while its imports rose 12% to US$203 million.

The Vietnam-Chile Free Trade Agreement (VCFTA) has opened the door for Vietnamese products to penetrate Chile and other markets in Latin America.

Under the deal, Chile will remove tariffs on 99.62% of tax lines for 10 years, 83.54% of which (or 81.8% of Vietnam’s total export earnings to Chile) enjoy a zero tax rate as soon as the agreement comes into effect.

Key products benefitting from tax reductions are seafood, coffee, green tea, crude oil, fresh fruit and vegetables, cattle meat, frozen and processed poultry products, garments and footwear.

Meanwhile, 537 tax lines (making up 6.96% of the total tax lines and 4.6% of Vietnam’s exports value to Chile) will be slashed to zero within five years after the agreement is effective.

An additional 704 tax lines (making up 9.12% of the tax lines and 13.6% of the total exports value) will be cut to zero over 10 years. Only 29 products are not subject to tax reductions or exemptions.

Vietnam has pledged to exempt tariffs on 87.8% of tax lines from Chile over 15 years.

Vietnamese investment in Laos to hit US$5.8 bln in 2015

The Association of Vietnam Investors in Laos (AVIL) will strive to raise Vietnamese investment in Laos to US$5.8 billion and two-way trade to US$1.7 billion in 2015.

The ambitious target was unveiled at a meeting between AVIL and Vietnamese investors in Vientiane on September 24.

Vietnam has so far had 413 valid projects in Laos, totalling approximately US$5 billion and making it the second largest foreign investor in the country.

A number of major projects have been put into operation, contributing approximately US$150 million to the Lao State budget and generating some 300,000 jobs for local people. They include Hoang Anh Gia Lai Group (HAGL)-invested projects on sugarcane, rubber oil palm plantations, and the Vietnam Rubber Group – funded projects on rubber growing and latex processing.

As of August 2014, two-way trade between Vietnam and Laos reached US$884 million, up 41.6% compared to the same period in 2013. It is expected to reach over US$1 billion by the end of this year.

During the eight-month period, Vietnam welcomed 101,770 Lao tourists, a year-on-year increase of 20%, while the number of Vietnamese tourists to Laos stood at about 700,000. The steady tourism growth was attributed to the effective implementation of cooperation programmes between Vietnam, Laos and other countries in the East-West Economic Corridor.

At the meeting, delegates discussed ways to ease difficulties and promote investment in the long term in Laos.

On the same day, Vietnamese Deputy Minister of Industry and Trade Cao Quoc Hung had a working session with Viraphonh Viravong, Vice Minister of the Lao Ministry of Energy and Mines on the sidelines of the ongoing 32nd ASEAN Ministers on Energy Meeting (AMEM) in Vientiane.

They agreed to establish a working group for energy cooperation between two ministries. The group will help both ministries keep abreast of the situation, handle work quickly, exchange information on energy policy, and propose new cooperation projects.

Quality improvements could boost exports

Vietnamese companies were urged to carefully study the European Union (EU)'s requirements for imports to maximise opportunities arising from Viet Nam's impending free trade agreement (FTA) with the trade bloc.

The call was made at a conference that the Viet Nam Trade Promotion Agency held yesterday to seek ways for Vietnamese companies to optimise business advantages and expand further into the EU market.

Negotiations for the EU-Viet Nam FTA began in 2012 and are entering the final round. The agreement, which creates opportunities for Viet Nam to boost exports to a market of about 500 million consumers, is to be signed by year-end.

A representative of the European Chamber of Commerce in Viet Nam (Eurocham) said negotiated reductions in tariff barriers alone will increase Vietnamese exports to the EU by 30 to 40 per cent.

The Eurocham official said the EU followed strict sanitary, phyto-sanitary, environmental and technical standards, and that consistency in the quality and safety of Vietnamese products would lead to an increase in exports.

Martin Buckle, an expert of the Centre for the Promotion of Imports from Developing Countries under the Netherlands Ministry of Foreign Affairs, said at the conference that EU importers were keen to develop business relationships with companies that took the time and effort to invest in quality.

He pointed out that increasingly stringent standards were applied to all food products being exported into the EU, including the hazard control system (HACCP), the new food safety management system (ISO 22000) and the European Union's new pesticide residue levels.

According to the Department of Processing and Trade for Agro-Forestry-Fisheries Products and Salt Production, the EU is a large potential market for Vietnamese agricultural products.

To tap the potential, especially after the FTA is signed, Vietnamese companies must carefully study the EU's strict quality requirements for imports, as well as the tastes of each sub-market in the EU, to set up appropriate export strategies.

Vietnamese companies should also pay attention to social and environmental responsibilities, the department added.

Official figures showed that the total value of goods traded between Viet Nam and the EU reached 27.6 billion euro (US$35.48 billion) in 2013, of which 77 per cent were Vietnamese exports.

Viet Nam's exports to the EU accounted for 19 per cent of the country's total export turnover, making the EU the country's second biggest trade partner.

SBV borrowers asked to report overcharging

The State Bank of Viet Nam Governor Nguyen Van Binh hdoanhnghiepvnas asked borrowers to report any instance of banks overcharging them for early loan repayments.

The local press had reported that a penalty amounting to 8 to 9 per cent of the principal of the loans, that had not been clearly stated in the loan contract or even verbally conveyed by the credit officials, were being charged.

Pursuant to Decision No 1627/2001/QD-NHN N dated on 31 December 2011, and Circular No 05/2011/TT-NHNN of March 10, 2011, creditors and borrowers are allowed to negotiate the penalty if the borrowers repay the loans before the due date. The penalty in practice is normally about 2 to 3 per cent.

However, Governor Binh just received a document from a voter in An Giang Province asking the central bank to cut the 5 per cent penalty to 2-3 per cent.

In a press release, Binh said that the regulation was legally right but currently, the banking system was assisting enterprises and sharing their financial constraints. The central bank has already told the credit institutions to apply reasonable fees on borrowers and to cut all fees that are irrelevant to the loans.

"Thus, the application of high penalty on early repayments is not in line with directions of the government and the State Bank of Viet Nam that help solve difficulties. The central bank would like to ask the people to report to the central bank's branches if this happens," said Binh.

Experts urge closer links between SMEs and banks

Commercial banks need to change their perception of small and medium-sized businesses to boost lending for businesses, said head of the Central Institute for Economic Management (CIEM) Vo Tri Thanh.

He added that many banks are unwilling to provide loans to the small- and medium-sized business (SME) community due to low profits and additional expenses. This perception should change and SMEs should also reorganise their administrative affairs and production, while improving their links with banks, reports Tin Tuc newspaper.

Thanh affirmed that SMEs outnumber big firms and can generate a large credit market. Therefore, banks should pay more attention to SMEs because this will benefit the banks too.

According to Thanh, there are credit guarantee funds for SMEs across the world. However, some work well, while some others do not. In Viet Nam, the fund is not necessarily guaranteed by the State so that private companies, associations, and unions can join it to improve their guarantee levels and credibility and enable them to access bank loans.

Cao Sy Kiem, chairman of the Viet Nam Association of Small and Medium-Sized Enterprises, said that it needs to strengthen the links between SMEs, and help them in all aspects of cooperation, financial support, legal consultation and market expansion to become a strong SMEs community with transparent activities to increase their access to bank loans.

According to Tran Quoc Hung, deputy director of the State Bank of Viet Nam's branch in Ha Noi, over the past three months, around 23 commercial banks and branches of all commercial banks have registered to participate in a programme to boost links between banks and businesses, with a committed loan of VND17.8 trillion (US$838 million).

Nguyen Hoang Minh, deputy director of the State Bank's branch in HCM City, said that under this programme, the amount of non-collateral loan given, as of July 10, was VND15.6 trillion ($732 million), accounting for 17 to 18 per cent of the total outstanding loans. A Vietinbank leader, who did not wish to be identified, said that his bank has established an ad-hoc credit unit to help SMEs get access to loans.

This unit will be responsible for collecting reliable inform-ation about banking, finance, production and the performance of businesses.

To promote trust in lending, Deputy Governor of the central bank Nguyen Thi Hong said that banks have their regulations for trust loans and commercial banks have their own unique products.

Banks have to assess the business plans, financial capability and the repayment capacity of the borrowers.

In Viet Nam, banks face difficulties in getting information about the borrowers. Thus, the central bank governor wants closer links between banks and businesses with the participation of the local authorities who know about the performance of firms operating in their provinces. By doing so, banks will have more information about the borrowers.

Kiem said that in this context, besides the support from the State, banks and enterprises must work together to resolve the difficulties.

In addition, businesses themselves have to use advanced administrative management methods to utilise the bank loan effectively.

A Vietnamese derivatives market is expected to be put into operation in 2016. The State Securities Commission (SSC) is stepping up the construction of a legal framework to run this market safely and effectively, the Vietnam Economic News reported.

Head of the SSC's Market Development Department Nguyen Son said that a derivatives market is a high-grade, complicated and potentially risky market as it accommodates transactions of financial documents such as the right to buy shares, warrants and call options. A Vietnamese derivatives market will be developed cautiously from a low to a higher level to assure that it is managed. A legal framework for this market is being prepared for the market’s short and long-term development.

The SSC recently called for suggestions for a draft government decree on derivatives and derivatives market prior to its submission to the government. According to the draft decree, derivatives must be standardized, listed and transacted on and through stock exchanges and paid through a central counterparty (CCP) system to avoid risks. The draft decree allows securities firms and commercial banks meeting certain standards especially capital and financial security standards to function as members of the derivatives market.

The Vietnamese derivatives market will target large, strong financial institutions that are capable enough of guaranteeing customer's transactions. The SSC is preparing a legal framework for the future derivatives market in accordance with international rules and foreign experiences. Building an effective legal framework for the market is not simple at all as derivatives market development is new in Vietnam . Deposits, payments, payment security mechanisms and CCP are being considered carefully when drafting the legal framework.

The draft decree requires securities companies to provide investors with information about derivatives, modes of derivatives transactions and payments and deposits before signing an account opening contract with investors. According to the draft decree, securities companies must provide investors with documented warnings about potential risks on the derivatives market while regularly informing investors of transaction results and deposit balance.

Education costs push September’s CPI up by 0.4%

Vietnam’s consumer price index (CPI) for September rose by 0.4% compared to the previous month and by 4.61% over September 2013, attributable to increased education costs at the beginning of the new academic year.

During the first nine months of the year, CPI increased by a mere 0.25% on average each month, an all time low in the last decade, the General Statistics Office (GSO) announced on September 24.

In September, nine out of the 11 commodity groups recorded price hikes between 0.21% and 6.38%, with the highest increase for education and the lowest for home equipment and utensils.

Housing and construction materials, and transportation services saw their prices drop during that month.

The implementation of the 2014-2015 tuition fee increase in some localities, rice price hikes in southern provinces, and soaring prices for food and entertainment services over the four-day Independence Day vacation were behind this month’s CPI increase, Nguyen Duc Thang, Head of the GSO’s Price Statistics Department, said.

Rising school fees pushed the index in the country’s major cities of Hanoi and Ho Chi Minh City up by 0.51% and 1.13%, respectively.

Statisticians forecast that October will see a similar CPI rise as prices for consumer goods and food will increase slightly.

Helping local businesses boost exports to US

A workshop was held in HCM City on September 24 to update businesses on new legal regulations of the US and make recommendations to help them successfully penetrate this lucrative market.

Vietnam fetched nearly US$23.9 billion from exports to the US last year, a year-on-year increase of 17.5% and US$16 billion in the first 7 months of this year, a rise of 24%.

Bui Hoang Yen, an official of the Ministry of Industry and Trade, said the US is one of Vietnam’s leading trade partners, yet inherent weaknesses prevent businesses from entering and expanding this market.

She said one of Vietnamese businesses’ drawbacks in exporting their agro-forestry and seafood products, food and pharmaceuticals to the US is their poor knowledge of the US’s import regulations and relevant procedures.

David Lennarz, Vice President of the US Registrar Corp, said the US Food and Drugs Administration (FDA) often seeks to investigate foreign food producers at risk, several peculiar products refused to enter the US, and new businesses exporting products in bulk. Goods at high risk include acidic food, seafood, fruits, fresh vegetables and spices.

David warned that Vietnamese exporters must inform the FDA before shipping products to the US and declare all shipments by sea, air, and road or via DHL.

Businesses should be aware of labelling regulations, product ingredient clarification and health notices, he suggested.

SeABank funds Vietnam Airlines aircraft deal

National flag carrier Vietnam Airlines announced on September 23 the purchase of an Airbus A321-200 aircraft financed by South East Asia Bank (SeABank).

This is the first time Vietnam Airlines has teamed up with SeABank to purchase the aircraft. SeABank is also the first local bank to finance the deal.

As part of its fleet expansion plans to acquire a total of 26 aircraft during the period 2011-2015, this is the 22nd purchase by the airline from manufacturer Airbus.

Vietnam Airlines is giving priority to Airbus A321 aircraft thanks to its technological advantages, reduced noise, and lower fuel consumption and maintenance costs.

Pham Ngoc Minh, General Director of Vietnam Airlines said the renovation of the fleet through the purchase of world’s leading aircraft will help the airline meet the travel demand of passengers, increase flight frequency and maintain service quality.

Le Thu Thuy, Standing Vice Chairman of SeABank Board of Directors, in turn said the bank’s credit loans will help Vietnam Airlines enhance operational efficiency on domestic and international air routes and transform into one of the premiere airlines in the world.

Ho Chi Minh City hosts Vietnam Fashion Fair

As many as 200 garment and textile companies are attending the Vietnam Fashion Fair 2014 (VIFF 2014) taking place at the Tan Binh Exhibition and Convention Centre from September 24-29.

The event has drawn the participation of famous brands such as Viet Tien, Nha Be, Duc Giang, May 10, Hoa Tho and Hanoisimex.

The exhibition’s roughly 300 stalls are showcasing differing kinds of garments and textiles, footwear, jewellery and other luxury products, as well as new collections for the latest fashion season.

The annual fair provides a golden occasion for companies to advertise their products to local and foreign businesses and seek more market opportunities.

Within the framework of the event, a wide range of activities including a fashion show, an exchange, and a music performance are planned.

EU-Vietnam free trade pact could boost GDP 15%

The potential payoff from the EU-Vietnam Free Trade Agreement (EVFTA) that could be concluded and ratified as early as 2014 is an estimated 10-15% boost in GDP along with a concurrent expansion of Vietnamese exports by 30-40%.

The information was unveiled by Maylis Labayle, Advocacy Manger of European Chamber of Commerce (Eurocham) at a seminar in Hanoi on September 24, discussing opportunities and challenges in the EU market.

She said two-way trade volume between Vietnam and the EU has been on a steady uptick over recent years, reaching EUR26.6 billion in 2013. Of which, Vietnam’s exports to the EU market was EUR21.3 billion and imports from the market was just EUR5.3 billion.

Last year, Vietnam’s trade surplus with the EU hit EUR16 billion, which is a huge advantage for Vietnam and bodes well for exports upon the signing of the EVFTA, said Ms Maylis Labayle.

Ms Labayle added another advantage for Vietnamese businesses is that their employees will receive further training support and transfer of technologies from the EU subsequent to the FTA coming into effect.

She noted the EVFTA will also provide a fresh impetus for the signing of the Trans-Pacific Agreement (TPP) in the not so distant future.

However, the expert cautioned Vietnamese exports to the demanding market should obey principles of transparency and protection of consumer rights through trade protection measures.

Ta Hoang Linh, Deputy Head of the Vietnam Trade Promotion Agency (VIETRADE) under the Ministry of Industry and Trade said the EU is now Vietnam’s most important trade partner, which has set high standards for goods to penetrate the market.

At present, just 42% of Vietnamese goods enjoy the EU's Generalized scheme of preferences (GSP). However, if the EFTA is signed, at least 90% of Vietnamese goods would be exempt from tariffs.

Therefore, Vietnamese businesses should seize every opportunity to improve their competitiveness and obey regulations on standards, technical requirements to penetrate the market.

Especially, businesses should update information on the FTA negotiations, regulations on certificates of origin, and devise plans to join the regional supply chain. In addition, they should learn more about technical standards and consumer habit to fully tap export opportunities.

As of the end of 2013, the EU had 1,402 projects in Vietnam with investment of US$18,024 billion. The EU poured US$656 million in foreign direct investment capital in Vietnam in 2013, ranking it sixth among foreign investors.

The final negotiation round of the VEFTA are set to take place in Danang on September 25-26. Experts predict that the agreement will be signed late this year.

“Meet Vietnam" Forum signals new cooperation opportunities

More than 30 Vietnamese businesses and their French 100 counterparts examined ways to spur broader cooperation in the areas of Vietnam’s demand and France’s strength at a recent “Meet Vietnam” Forum in Paris.

Addressing the forum, French Agency for International Business Development (UBIFRANCE) CEO Muriel Penicaud cited Vietnam as one of French businesses’ major priorities for export-import and investment.

Deputy Minister of Industry and Trade Ho Thi Kim Thoa said the forum aims to help the business community and investors of both countries meet bilateral and multilateral trade mechanisms Vietnam are negotiating to engage in, including the EU-Vietnam Free Trade Agreement (EVFTA) which is expected for completion by the end of this year.

"We are paying heed to further upgrading transport infrastructure in Vietnam and calling for energy investment, especially renewable energy as the electricity growth rate has now doubled GDP growth rate.

With 70% of the agricultural labor force, we are desirous of boosting cooperation with French investors in agricultural product processing for exports to the European market and imports of footwear and garments from Vietnam.” Thoa noted.

She also expressed hope that the forum will open up a new chapter in the Vietnam-France economic relations.

Vietnam Ambassador to France Duong Chi Dung was also bullish on new directions of cooperation in the areas that are in Vietnam’s demand and France are experienced  like renewable energy, services, pharmaceutical industry and agricultural product processing.

Responding to a Paris-based Radio Voice of Vietnam (VOV) correspondent about France’s strengths to meet Vietnam’s requirements for development, Muriel Penicaud said, "The energy sector and infrastructure development play an important role in France’s development and our world leading groups in this field, including small and medium companies have partnered with foreign countries in the form of partnerships and technological transfer.

Vietnam should increase cooperation with France in potential fields like farm produce processing and pharmaceuticals.”

Muriel Penicaud urged Vietnamese businesses to heavily invest in France and pledged her agency’s support for them.

Having many years of UBIFRANCE management experience in Hanoi and Ho Chi Minh City, UBIFRANCE Vietnam Chief Representative Marc Cagnard stated, "There are wealthy of opportunity for Vietnamese and French businesses to invest in the areas of their particular strengths-transport infrastructure, energy and the environment and agriculture, telecommunications, and communication.”

According to Dasault Systemes Group Vice President Philippe Forestier who has accumulated a great deal of successful business experience in Vietnam, despite long geographical distance, Vietnam is still seen as an attractive destination for French businesses.

Dasault Systemes Group Vice President Philippe Forestier .

Talking to a VOV reporter, Forestier emphasized, "Vietnam’s business environment is appealing to us thanks to a 90 million people dynamic market and young labour force. Vietnam will see rapid development in the future and is open to scientific advances, creativities and digital technology ".

The "Meet Vietnam" forum is instrumental in helping Vietnam reach a Free Trade Agreement (FTA) with the EU by the end of this year, paying the way for the country fully utilize good investment opportunities presented by the EVFTA.

VN slashes tax procedures to save time

Viet Nam has taken drastic measures to reduce the time needed for companies to fill in tax forms and pay dues from 1,050 hours down to the current 872 hours in five years.

Chairwoman of the Viet Nam Tax Consultancy Association (VTCA), Nguyen Thi Cuc, said this in the central city of Da Nang yesterday at a workshop to discuss a draft decree to amend taxation policy.

Cuc, who is former Deputy Director General of the General Department of Taxation, said Vietnamese taxation agencies, ministries and departments must reduce the hours taken to complete tax procedures from about 171, similar to the ASEAN 6 (Thailand, Singapore, Malaysia, Indonesia, the Philippines and Brunei).

She said this would improve Viet Nam's competitiveness.

"Viet Nam ranked 149th out of 189 nations in the Competitiveness Index and 185th in the Tax-Paying Index devised by the World Bank. The poor figure called for rapid change in administrative reforms and strong endeavours from customs, tax and businesses," she said.

She added that taxation procedure reform would boost transparency and competitiveness as well as create more favourable conditions for business.

Cuc said there was still many obstructions in the tax system and much overlapping by taxation and public security agencies, adding that digital tax had yet to be widely embraced.

Director of legal, regulatory and competition matters under the USAID's Governance for Inclusive Growth Programme Phan Vinh Quang, said the Government's Resolution 19 and the Finance Ministry's circular 119 (119/2014/TT-BTC) had a good impact on boosting the competitiveness for businesses.

"A survey of 400 businesses showed that the Finance Ministry's circular 119 helped enterprises save VND3 trillion (US$143 million) by streamlining administrative procedures and reducing tax barriers," Quang said.

"But Resolution 19, which will reduce the time to complete and pay tax each year down to 171 hours, would save VND11 trillion ($524 million)," he added. He said the World Bank suggested Viet Nam should promote e-tax declarations, simplify procedures and encourage businesses to self declare.

DHG decides not to invest in Myanmar drug factory

Can Tho-based Hau Giang Pharmaceutical (DHG) will not acquire stakes in the Anh Sao Viet Pharmacy Joint Stock Company (ASV Pharma Viet Nam), which has a joint-venture factory in Myanmar.

In July, DHG had planned to acquire a 72.86 per cent stake in ASV Pharma Viet Nam, a move that was meant to allow DHG to indirectly hold a 51 per cent stake in ASV Pharma Myanmar and enter the Myanmar market.

It was expected that the new drug factory in Myanmar would promote drug exports and bring revenues for DHG.

A representative from Hau Giang Pharma told the Doi Song Phap Luat (Life and Laws news online) that regardless of the withdrawal of investment, DHG will continue to do market research to expand its distribution network in Myanmar.

As many as 17 registered pharmaceutical products of DHG are in circulation in Myanmar, and five more products are scheduled to be introduced in the market by 2015.

By the end of August, DHG had gained VND2,315 billion (US$110 million) in net sales, an increase of 15.4 per cent year on year.

Viet Nam exports nearly 4.5m tonnes of rice

Viet Nam has shipped abroad nearly 4.5 million tonnes of rice worth more than US$2 billion as of September 18, 2014.

Figures from the Viet Nam Food Association also showed that the price of five-per cent broken rice grains from the country was worth $445 per tonne last September 19. This is $5 lower than that of the previous week and $10 lower than that of last month but $85 higher than that of the same period last year.

Ben Tre coconut exports soar by 45% YOY

The southern province's export turnover of coconuts and coconut-based products in the first nine months of this year soared by 45 per cent over that of the same period last year.

Ho Vinh Sang, president of the Ben Tre Coconut Association, attributed the increase mainly to the increase in world prices. Currently, the province's coconuts and coconut-based products are exported to 65 countries and territories around the world, and the province has allocated nearly 65,000ha of land to coconuts.

Ha Noi loans grow by 4% in September

Total outstanding loans in the capital city reached VND975.20 trillion (US$46.44 billion) in September, according to figures from the city's Department of Statistics.

The amount represents a four-per cent increase over that of August and a 3.2-per cent increase over that of the end of 2013.

Short-term loans grew by 5.9 per cent over that of August and 0.2 per cent over that of end of last yeas while medium- to long-term loans expanded by 0.2 per cent over that of August and 9.7 per cent over that of end of 2013.

A retail network comprising over 1,000 supermarkets and shopping centres is to be built in Hanoi by 2020 to serve the needs of its citizens, Vice Director of Hanoi’s Department of Industry and Trade Tran Thi Phuong Lan has said.

Accordingly, under the trade development programme, 988 supermarkets and 64 shopping centres of various kinds will be built in the capital by 2020, funded by foreign capital, domestic funds and government capital.

Lan said the basements and ground floors of existing buildings can be converted into trade centres, stating that supermarkets and shopping centres would not be built on entirely new plots of land in the inner-city areas of Hanoi.

The city would develop traditional markets into shopping centres, she added.

The project is part of Hanoi’s socio-economic development plan for 2020, with a vision to 2030. The scale of the supermarket network will be determined by population density and distance from other retailers.

The department will reassess the city’s infrastructure after two years of implementation to have a clearer overview of future development needs.

Hanoi’s population is expected to reach 9.4 million, with a per capita income of 7,500 USD by 2020 and 17,000 USD by 2030. In the next ten years, the city will expand its wholesale and retail system by 864 supermarkets and 36 shopping centers.

Mekong Delta produces 20.6 million tonnes of rice

The Mekong Delta has harvested 20.6 million tonnes of rice, planted during the winter-spring and summer-autumn sowing seasons, accounting for more than 82 percent of the region’s target, the Mekong Delta Rice Research Institute reported.

The region recorded a 9.6 million tonnes harvest of rice in the summer-autumn crop alone, up by 200,000 tonnes compared to the same period last year.

This is attributable to the use of disease-resistant and high-yield varieties, the institute said.

Farmers in Tien Giang, Long An, Ben Tre, Tra Vinh, Soc Trang, Bac Lieu, Ca Mau, Kien Giang and Hau Giang received over 100tonnes of drought-resistant and salt-tolerant rice seeds.

They also improved dykes and irrigation infrastructure to ensure a sufficient supply of freshwater for around 700,000ha of summer-autumn crops.

Nearly 300 billion VND (14.2 million USD) was provided to farmers in the form of loans to help them buy seedlings and equipment, and access advanced technology.

Vietnam issues plan to enhance plant quarantine

Following a government decree, Vietnamese authorities have developed a blueprint for the implementation of the country’s law on quarantine.

The plan specifies the responsibilities and tasks of relevant agencies, issues practical guidelines, and sets out an effective coordinating mechanism.

It aims to limit the damage caused by harmful organisms, develop sustainable agricultural production and boost the export of agricultural exports.

According to the blueprint, central and local administrative units are to develop clear and informative documents on plant quarantine, and hold workshops and conferences to promote and implement the law.

VIB effectively uses IBM cloud computing solutions

IBM last week announced that the bank (VIB) had been using its cloud computing solutions effectively for months, for maximising all of its resources and enhancing its operational capacity.

VIB has cooperated with IBM and IBM’s partners to deploy these virtual solutions based on IBM’s systems of PureFlex System Express and System Storage, and software IBM SmartCloud Entry.

This cloud can be expanded based on VIB’s demand. After four months of using these solutions, VIB has been able to cut down 76 per cent of costs for electricity and shrink its server’s rack areas by 81 per cent. Time for processing data batches has also been halved, from 180 minutes to 90 minutes, every day.

The IBM PureFlex System Express embraces computing nodes IBM Flex System x240 and IBM Flex System p260 with software VMware.

VIB has also used a set of software named VMware vSphere Site Recovery Manager to support an IBM Storwize V7000 disk system. This is to deal with possible risks and incidents rapidly.

VIB is one of Vietnam’s first banks to use cloud computing solutions for improving their performance. With these solutions, VIB has saved nearly 80 per cent of costs for power used for maintaining information technology infrastructures. The bank has also significantly pared down costs for buying software copyrights. Time for implementing other product infrastructures of the bank has also been truncated from several months to several days only.

“The deployment of cloud computing solutions has been an important part in VIB’s technological renewal strategy,” said VIB vice general director Tran Nhat Minh.

“Over the past recent years, these solutions have become a strategic need of organisations and enterprises,” said Tran Mai Huong, director of IBM Vietnam’s northern region customer section. “IBM cloud computing solutions can support banks in operational capacity and competitiveness.”

IBM has also been cooperating with Vietnam’s leading banks to improve their information technology infrastructures.

Currently IBM has more than 100 cloud computing software solutions, with a network of 40 data centres around the world.

GE turbines selected for Tay Nguyen wind farm

GE and HBRE Wind Power Company Ltd. (HBRE) yesterday signed a memorandum of understanding for cooperation in developing the Tay Nguyen wind farm in the Central Highlands’ province of Daklak.

The MoU signing ceremony was held during the visit of GE’s vice chairman and president & CEO of GE Global Growth and Operations John G. Rice to Vietnam.

The agreement between GE and HBRE on the Tay Nguyen wind power project will utilise GE technology in a joint effort to develop economic and renewable energy in Vietnam. Under the agreement, GE will help HBRE to undertake wind engineering analyses, analyse site layout, and assess constructability.

GE will also provide wind turbine generators for the site conditions. Additionally, GE will support HBRE in developing electrical design concepts and facilitating discussions on financial arrangements, as well as working with relevant agencies to move the project forward. GE is committed to the long-term maintenance of the wind turbines and a full service agreement is also part of the agreement.

The Tay Nguyen project is located in Ea H’Leo district, which has a high potential for wind energy, with an average wind speed of 7.6 metres per second. The project’s investor HBRE is a real estate company and is responsible for the design, construction and operation of the wind farm at Dile Yang.

“The cooperation with HBRE on the Tay Nguyen project builds from our accomplishment of providing 52 wind turbines to the Bac Lieu wind power plant last December,” said CEO of GE Vietnam and Cambodia Nguyen My Lan at the signing ceremony. “This is a clear demonstration of our continuous commitment to support the development of the local community as well as to contribute to the development of renewable energy in Vietnam.”

“We are delighted to cooperate with GE on this project and believe this collaboration will be successful,” Ho Ta Tin, chairman of HBRE Company said. “This project will contribute to the improvement of social and economic conditions in Daklak by creating hundreds of jobs that require technical and industrial skills, while contributing additional power to the national grid. We also hope this project will help attract further investment to Dak Lak and provide momentum to move forward with wind power development in the region and in Vietnam.”

GE provides technology support for a variety of power generation projects across the country. With an installed capacity of more than 2,000 megawatts in Vietnam, GE equipment today supplies approximately 10 per cent of the country’s electricity capacity.

In 2009, GE opened a factory to support its wind division in the northern port city of Haiphong. Last year, the US group increased its total investments in the factory to $110 million, up from an initial $50 million, to expand its production capacity to meet the global demand. The manufacturing facility has created over 600 local jobs and exported thousands of wind turbine generators and other energy equipment to GE’s manufacturing and service centres around the globe.

Projects lay idle on golden HCMC properties

A number of projects on high-value properties in Ho Chi Minh City have lain idle for many years.

One such project is the Sai Gon Diamond Corporation’s $137 million SJC Tower. The property has frontages on four of the busiest roads in the city, namely Le Khanh Ton, Nam Ky Khoi Nghia, Nguyen Trung Truc and Le Loi. At current the 3,800 square-metre area is being used as a parking lot.

Another is the Kenton Residences project in the bustling Nam Sai Gon area, invested in by the Tai Nguyen Construction-Production-Trading Company. The project plans to build nine towers of 15-35 stories each that will contain a total 1,640 high-end apartments and a 20,000 sq.m mall. Construction started in June 2009 but has since stopped.

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